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Buhari deceived Nigerians, says Falana

Buhari deceived Nigerians, says Falana
May 12
18:40 2016

Femi Falana, Lagos-based human rights lawyer, says President Muhammadu Buahri has reneged on his campaign promise of not increasing the pump price of petrol.

Describing the increase as illegal, the lawyer demanded a reversal to the old rate. He said the government lacked statutory power to introduce new price regime because the body empowered to take such decision is yet to be constituted.

He also advised Buhari not to allow “neo-liberal ideologues, with intent to punish the people” hijack his administration.

Falana said this in a statement issued on Friday.

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Below is the full statement

During the campaign last year, the candidate of the All Progressives Congress, General Muhammadu Buhari pledged that if elected as President by the Nigerian people his administration would not remove fuel subsidy. Since he won the election last year President Buhari has consistently resisted pressures from the neo-liberal characters in the government to remove fuel subsidy and increase the price of petrol. On January 18, 2016 the federal government allayed the fear of Nigerians when the price of petrol was reduced to N86.50k per litre. In justifying the decision to the people the federal government claimed that the reduction was due to an implementation of the revised component of the Petroleum Products Pricing Template for PMS and household kerosene. 

 It would be recalled that following the popular agitation against the removal of fuel subsidy in 2012, the Ministry of Petroleum Resources had announced the decision of the Goodluck Jonathan administration to set up 30 green field refineries in the country.

Shortly thereafter, the policy was jettisoned due to pressure from the cabal of local fuel importers. In 2013, the Jonathan administration secured a loan of $1.6 billion for the maintenance of the country’s four refineries. At the end of the repairs the refineries could only refine about 80,000 barrels of crude oil per day instead of 445,000 barrels earmarked for domestic consumption.

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The Buhari administration has also spent millions of dollars for the so called turn around maintenance of the refineries. Barely a month ago, Dr. Kachikwu had announced that fuel subsidy had been removed through his ingenuity. In celebrating the “success” recorded by him in the management of the petroleum industry he disclosed that Nigeria was saving $1 billion in subsidy removal and $1 billion in fuel importation. He also stated that “for the first time, our refineries are ready to work now. Crude has been pumped from Brass to Port Harcourt.

Pipeline is being used for the first time in 10 years for the first time in six years. For the first time we are able to pump to Ilorin, we have not done that in 10 years.” (Nigerian Tribune, March 16, 2016). Curiously, Dr. Kachikwu’s “giant strides” in the petroleum industry appear to have collapsed completely before our very eyes!

Hence, without any public debate or consultation with relevant stakeholders whatsoever the federal government took the Nigerian people by surprise yesterday when it decided to increase the pump price of petrol from N86.50k to N145 per litre. Not too long ago, the federal government had supported the imposition of higher tariffs paid on epileptic supply of electricity by consumers.

In sentencing the Nigerian people to excruciating economic agony the Ministry of Power defied a court order which had restrained the government from giving effect to the proposed electricity tariff. In the same vein, the decision to increase the price of petrol is also illegal and contemptuous. In the case of Bamidele Aturu versus Attorney-General of the Federation (unreported suit No. FHC/ABJ/CS/591/2009) the Federal High Court declared illegal and unconstitutional the policy decision of the federal government to deregulate the downstream sector of the petroleum industry contrary to the combined effect of the provisions of the Price Control Act and the Petroleum Act.

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 In total defiance of the said order of the federal high court the federal government has deregulated the downstream sector of the petroleum industry. In justifying the illegal policy, Dr. Kachikwu claimed that “PPPRA has informed me that it will be announcing a new price band effective today, 11th May, 2016 and that the new price for PMS will not be above N145 per litre.”

 Since the Petroleum Products Pricing Regulatory Agency (PPPRA) which is statutorily empowered to recommend the price of petroleum products has not been reconstituted the unilateral decision of the Executive Secretary of the body to fix the pump price at N145 per litre is ultra vires and illegal in every material particular. In view of the illegality, insensitivity and immorality of the price increase the federal government should cancel it, revert to the status quo and consult widely with all relevant stakeholders in the society.

However, due to the ongoing fuel crisis in the country the Directorate of Petroleum Resources (DPR) recently invited fresh bids for the setting up modular refineries. At the end of the screening exercise sometime in March this year the DPR announced that it had awarded 22 licences for modular refineries with combined capacities to refine 1.429 million barrels of crude oil per day. If the policy is genuinely pursued the construction of the refineries ought to be completed within the 9-12 months. If such refineries are established in the country the importation of fuel and the fraud associated with it will stop. In the interim, instead of importing oil from Europe and the United States the NNPC should refine crude oil for domestic consumption in neighbouring countries which have functional refineries. After all, Nigeria refines 60,000 barrels of crude oil per day in Cote d’ivoire which is not an oil producing nation.

If subsidy had been removed over a month ago and the country has been saving $2 billion (from fuel importation and subsidy removal) while the refineries are now working at full capacity Dr. Kachikwu should tell Nigerians the justification for the new removal of fuel subsidy announced by him yesterday. The cost elements that make up the N145 are provocative. If the total landing cost of a litre and other charges are fixed at N138 what is the basis of fixing the price at N145? For goodness sake, why should motorists be made to pay NPA/NIMASA charges, demurrage within and without /storage/ bridging charges etc?

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At this stage President Buhari ought to prevent neo-liberal ideologues from hijacking the administration for the purpose of punishing the Nigerian people for the looting of the treasury and mismanagement of the national economy. Contrary to the position of the parasitic ruling class that prices of goods and services be fixed by market forces the federal government has a legal obligation to protect the people from exploitation. For instance, the virtual collapse of electricity supply has forced many corporate bodies and individuals to invest heavily in generators and diesel throughout the country. Although the price of diesel has crashed all over the world it has continued to increase in Nigeria due to manipulation. The federal government should, as a matter of urgency, abolish the monopoly in the importation and sale of diesel. There is no justification for the monopolistic control of goods and services under a free market economy!

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8 Comments

  1. Deb
    Deb May 12, 20:38

    Barister! You may have been deceived by Buhari, but not some of us who knew a lot of the promises were shallow and just mere vote catching strategy.its so unfortunate that even otherwise educated people could be so gullible! !
    Be informed that there is no miracle that ll make things better, but taking rational well thought out decisions. If u believe anything else, you are living in fools paradise

    Reply to this comment
  2. Martins
    Martins May 12, 21:40

    APC is a special vehicle simply set up to deceive, scam, hoodwink Nigerians into voting them into power. This party is a complete let down, they have virtually denied all its campaign promises and simply out to inflict pain on the masses. First was hike in electricity tariff and we are paying for darkness virtually nationwide. Now is fuel and next up is VAT. Yet they are yet to add a single megawatt or create a single job.

    Reply to this comment
  3. El' Natee
    El' Natee May 12, 23:08

    Wat we should do’is 4 us 2 pray about it” everi tin wil becum normal.. I throw a big salot to””” GEJ “” rigime

    Reply to this comment
  4. Darl
    Darl May 13, 18:57

    Isn’t it quite amazing that even amidst the highly politicized corruption that were said to have occurred in GEJ’s regime,his govt was still able to maintain a relatively people’s friendly economic environment than the present “incorruptible” regime of angels?
    Yes,its true that the devil you know is far better than the ANGEL you dont know. Just thinking aloud!

    Reply to this comment
  5. manijar seigha
    manijar seigha May 14, 06:46

    Nice to read Falana and Tinubu. Would like to read Bakare on this.

    Reply to this comment
  6. Obapaul1
    Obapaul1 May 14, 10:44

    Your comment..Femi Falana was part or rather is part of the problem nigeria is facing today, if he is now regretting his actions, let him say so instead of blaming any political party. Or is femi Falana telling us he criticized former president Goodluck Ebele Jonathan out of hatred, dislike, ignorance or for some political reasons best known to him and the party he directly or indirectly worked for. Someone should please tell him to come out more open.

    Reply to this comment
  7. JIL
    JIL May 14, 16:57

    Good to hear Barrister Femi Falana on this. He has spoken well. Where are the “Prof Tam David West and all his calculations”; bring back our girls (or are the kidnapped girls back without our knowing?); Pastor Tunde Bakare and his safe Nigeria groups of this world?. Just thinking aloud.
    The first time I was asked to spell “psychology”, I spelt it as “sychology”, not knowing there was a silent “p”. When PMB and his APC were campaigning, saying they will “remove subsidy” And PMS will sell for 40 to 45 naira, little did we realized there was a silent “100naira”. How are we sure there are no lots of silent “x,y,z” in all the reasons they are putting forward for the increment? Still thinking aloud.
    Two documents were used to deceive unsuspecting Nigerians into voting APC to power, namely “100 things Buhari will do in the first 100days” and “my covenant with Nigerians”. All were thrown into the thrash bin as soon as they were sworn in to power. How are sure all they are telling us now will not suffer the same fate? Still thinking aloud.
    There is however one “positive” thing you can not take away from PMB, even if you don’t like his face (at least you can do nothing against the truth): He promised “change” and everything has truly changed (food items, PMS pump price,…..even pure water price). Kudos to our dear president. Change for real in deed!

    Reply to this comment
  8. Nwendu
    Nwendu June 07, 06:39

    PMB and his APC are no longer placing emphasis on the change mantra. It is no longer convenient because it rather alludes to failure. indeed (All promises cancelled).I sympathize with Mr. Falana and his colleagues, suddenly they have realized the deception of PMB. What I expect however from the “Save Nigeria Group” is

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