Court Halts FG Deregulation Policy In Petroleum Sector

Court Halts FG Deregulation Policy In Petroleum Sector Nnamdi Felix / Abuja/ The ongoing federal government deregulation policy at the downstream sector of the petroleum industry in Nigeria on Tuesday suffered a severe blow as a Federal High Court siting in Abuja has held that government lacks the power to deregulate the sector. The court's decision renders all that the government had done so far in furtherance of the deregulation process at the petroleum downstream sector a nullity. The presiding judge, Justice Adamu Bello held that the government must always fix the price of petroleum products sold across Nigeria as stipulated in the nation's statutes. The court's decision was delivered in a matter instituted by a legal practitioner, Mr. Bamidele Aturu, against the Minister of Petroleum Resources and the Attorney General of the Federation wherein he challenged the 2009 decision of government to stop fixing prices of petroleum products in Nigeria. Aturu sought for the court to determine whether the attendant prohibitive hike in petroleum products which had just gone up to N65 then would not make freedom of movement guaranteed by section 41 of the constitution illusory for the generality of Nigerians and urged it to declare that the federal government policy decision to deregulate the downstream sector by not fixing prices at which petroleum products may be sold in Nigeria is unlawful, null and void and of no effect whatsoever. He further sought for an order restraining 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. The federal government opposed the suit and challenged the locus standi of the lawyer to institute the action. Government also pleaded 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 Bello Adoke (SAN), faulted the manner in which Mr. Aturu commenced the matter and stated that as presently constituted, that the suit was improper before the court. The court however waved aside the opposition of the government and granted all the reliefs sought by Mr. Aturu and ordered the government to continue to fix, regulate and publish regularly prices of petroleum products across the country.

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