Court declares Nigeria policy on deregulation as unconstitutional

The Federal High Court has in Abuja declared the Federal Government policy on deregulation of the downstream sector as unconstitutional. Mr Bamidele Aturu had instituted the suit against the Minister of Petroleum Resources and the Attorney-General of the Federation (AGF).

Delivering judgment, Justice Adamu Bello held that “the planned policy on petroleum deregulation is illegal, null and void’’. Bello further said that “from now on, the Federal Government is mandated to fix and publish regularly the prices of petroleum products’’. The plaintiff, a legal practitioner, had challenged the 2009 decision of the government to stop fixing prices of petroleum products in the country.

“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.

The Federal Government, however, opposed the suit and challenged the `locus standi’ of the plaintiff to institute the action. The Federal Government 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 Adoke (SAN), faulted the manner in which the plaintiff commenced the matter, adding that it was improper before the court. The court, however, waved aside the objections raised by the government and granted all the reliefs sought by the plaintiff.