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Federal High Court Rules Deregulation of Oil Sector Illegal; Orders Federal Government To Publish Prices of Petroleum Products

The Federal High Court today in Abuja declared the policy of deregulation to be unconstitutional, illegal, null and void, and ordered the government, from now on, to fix and publish regularly the prices of petroleum products.

The Federal High Court today in Abuja declared the policy of deregulation to be unconstitutional, illegal, null and void, and ordered the government, from now on, to fix and publish regularly the prices of petroleum products.

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Ruling in Case # FHC/ABJ/CS/591/2009: Bamidele Aturu v Minister of Petroleum Resources and the Attorney General of The Federation, Justice M. Bello ordered the defendants, their agents, privies, collaborators and whosoever and howsoever to desist from deregulating the downstream sector of the petroleum industry or from failing to fix the prices of petroleum products as mandatorily required by the Petroleum Act and the Price Control Act.

The also court issued the following orders:
1.     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 is unlawful, illegal, null, void and of no effect whatsoever being in vicious violation of the mandatory provision of section 6 of the Petroleum Act, cap P.10, Laws of the Federation of Nigeria, 2004.

2.     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 is unlawful, illegal, null, void and of no effect whatsoever being in flagrant violation of the mandatory provision of section 4 of the Price Control Act, cap P28, Laws of the Federation of Nigeria, 2004.

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3.     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 is unlawful, illegal, null, void and of no effect whatsoever being in conflict with Section 16(1)(b) of the Constitution of the Federal Republic of Nigeria, 1999 which provides that the Government shall control the national economy in such manner as to secure the maximum welfare, freedom and happiness of every citizen on the basis of social justice and equality of status and opportunity.

4.     A DECLARATION that 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 has the effect of making the freedom of movement guaranteed in section 41 of the Constitution of the Federal Republic of Nigeria, 1999 illusory for the Plaintiff and the generality of Nigerians and is therefore illegal, unconscionable and unconstitutional and of no effect whatsoever.

Thanking the judge for the verdict, Mr. Aturu noted that the sound and logical treatment of the issue of locus standi raised by the defendants offered reassurance that the judiciary without doubt cannot be wholly dismissed in the struggle to build genuine democracy.
“The judge has done his own bit,” he said in a statement.  “It is now left for Nigerians to be alert to challenge any wicked increase in the prices of petroleum products. May God truly bless Nigeria.”

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