Tuesday, December 24

Abuja Court Shoots Down Govt’s Policy on Deregulation

ONGOING deregulation efforts of the petroleum downstream sector by the Nigerian federal government met a brick wall on Tuesday, when the Federal High Court in Abuja declared it unconstitutional, saying it is “illegal, null and void.”

Justice Adamu Bello, who presided over the case brought before the federal court by activist lawyer Bamidele Aturu, said the government must henceforth furnish the public on a periodical basis with the prices of petroleum products in the country.

Aturu had challenged the 2009 decision of the government to stop fixing prices of petroleum products in the country, compelling the court to declare it as unlawful.

“From now on, the federal government is mandated to fix and publish regularly the prices of petroleum products in the country,” Justice Bello said in his judgment.

“The defendants, their agents, privies, collaborators are ordered to desist from deregulating the downstream sector of the petroleum industry.

“They are, therefore, mandated to fix the prices of petroleum products as mandatorily required by the Petroleum Act and the Price Control Act,’’ he said.

The plaintiff had sought a declaration that the policy decision of the defendants to deregulate the downstream sector of the petroleum industry by not fixing the prices at which petroleum products may be sold in Nigeria was unlawful.

He further urged the court to pronounce the policy as illegal, null, void and of no effect whatsoever being in vicious violation of the mandatory provision of Section 6 of the Petroleum Act.

Aturu also sought for the court to determine whether the attendant prohibitive hike in petroleum products which had just gone up to N65 then would not affect freedom of movement guaranteed by Section 41 of the constitution.

He further sought for an order restraining the government and its collaborators from deregulating the downstream sector of the petroleum industry or from failing to fix prices for petroleum products as mandatorily required by the Petroleum Act and the Price Control Act.

Government however opposed the suit and challenged the `locus standi’ of the plaintiff to institute the action, pleading with the court to strike out the suit which it maintained did not disclose any cause of action.

Furthermore, the Attorney-General of the Federation and Minister of Justice, Mr Mohammed Adoke (SAN), faulted the manner in which the plaintiff commenced the matter, adding that it was improper before the court.

The latest developments come amid reports on Tuesday that President Goodluck Jonathan admitted that the price of petroleum products will be going up soon, but that such increment will not be carried out without inviting the inputs of Nigerians.

Speaking at a press conference in Lagos today, Mr. Jonathan said, “We cannot continue to waste resources meant for a greater number of Nigerians to subsidize the affluent middle class, who are the main beneficiaries.”

Civil society groups who converged under the banner of ‘Occupy Nigeria’ have however promised to meet the president eyeball-to-eyeball on the issue, saying they would fight the government as they did the last time when government pulled a New Year shocker in January 2012 with the sudden removal of subsidies on petroleum products in the country, causing prices of goods and services to skyrocket across the board.

“We promise never again to be deceived or derailed by organized labor or any pro-government group which may want to sell out,” one organizer said.  “So if Jonathan is ready, we encourage him to bring it on.”

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