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FCCPC Questions Slow Fuel Price Cuts Despite Crude Oil Crash

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The Federal Competition and Consumer Protection Commission (FCCPC) has raised concerns over what it described as possible consumer exploitation in Nigeria’s downstream petroleum sector following the failure of fuel prices to decline significantly despite a sharp drop in global crude oil prices.

 

The commission said its ongoing market surveillance showed that local refiners, depot operators, marketers and filling station owners had implemented only marginal reductions in fuel prices, a development it said was not commensurate with the steep decline in international crude oil prices.

 

In a statement issued  yesterday by the FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, the commission said a review of prevailing gantry and retail prices suggested that consumers were yet to fully benefit from the easing in global oil prices.

 

The statement read, “The Federal Competition and Consumer Protection Commission has expressed concern over findings from an ongoing surveillance of the downstream petroleum market suggesting undue exploitation of consumers.

 

“A review of the gantry prices of local refiners, marketers, depot operators and retail outlet operators revealed token reductions in prices that are not commensurate with the steep fall in crude prices in the global market.”

 

The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said the commission was concerned by what appeared to be a one-sided response to changes in crude oil prices.

 

According to him, operators in the downstream sector often move swiftly to raise pump prices whenever crude oil prices increase but are reluctant to pass on the benefits to consumers when prices fall.

 

Bello said, “To be clear, the Commission does not regulate or approve petroleum prices in a deregulated downstream market. Our responsibility under the Federal Competition and Consumer Protection Act, 2018, is to promote competitive markets, prevent anti-competitive conduct, and protect consumers from unfair, deceptive and exploitative business practices.

 

“We are concerned that while dealers often respond swiftly by hiking pump prices whenever crude prices rise, it is curious that it is taking forever for consumers to benefit significantly when crude prices fall. Competitive markets must work fairly in both directions.”

 

The commission’s concerns come amid a sharp reversal in global oil prices following a ceasefire agreement between the United States and Iran and the reopening of the Strait of Hormuz, a major global oil shipping route.

 

The Tide reports that the price of petrol has remained high even as crude oil prices fell to about $73 per barrel last Wednesday, their lowest level since the US-Iran conflict began in February.

 

Crude oil prices, which had climbed to about $120 per barrel in April amid fears of supply disruptions arising from the Middle East crisis, have since fallen to around $73 per barrel, returning to levels last seen in February.

 

The earlier surge in crude prices triggered immediate increases in local fuel prices, with petrol selling for between N1,350 and N1,500 per litre in several parts of the country, while diesel prices climbed to about N2,000 per litre.

 

In February, however, petrol sold for between N800 and N900 per litre.

 

Despite the significant decline in crude oil prices, the commission noted that petrol is still being sold at an average of about N1,200 per litre across the country, while some local refiners currently have gantry prices ranging from N1,025 to N1,075 per litre.

 

Although the FCCPC acknowledged that domestic fuel prices are influenced by several commercial factors, including foreign exchange fluctuations, logistics costs, financing expenses, refining costs and distribution charges, it maintained that competitive market forces should ordinarily have led to more substantial reductions in pump prices.

 

Bello said, “Market liberalisation does not diminish businesses’ obligations to compete fairly or consumers’ right to fair treatment. Where credible evidence indicates conduct that undermines competition, exploits consumers or otherwise contravenes the Federal Competition and Consumer Protection Act, the Commission will investigate and take appropriate enforcement action.”

 

He urged Nigerians to continue reporting suspected cases of anti-competitive conduct, price manipulation and other unfair market practices through the commission’s complaint channels.

 

The FCCPC’s concerns are likely to reignite debate over the effectiveness of the deregulated petroleum market, with many consumers and industry stakeholders questioning why reductions in international crude oil prices have not translated into proportionate declines at the pumps.

 

Since the removal of fuel subsidy and the full deregulation of the downstream sector, fuel prices in Nigeria have become increasingly tied to movements in global crude oil prices and exchange rate fluctuations.

 

However, consumer groups have repeatedly accused marketers of implementing price increases almost immediately while delaying price reductions whenever market conditions improve.

 

The FCCPC said its warning signalled possible regulatory scrutiny of pricing practices in the sector as pressure mounts on operators to ensure that the gains from lower crude oil prices are passed on to consumers.

 

 

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Fubara Seals Off Collapsed Building Site, Orders Investigation

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Rivers State Governor, Sir Siminalayi Fubara, has ordered a complete seal-off of the site of a  five-storey building which collapsed last Wednesday, killing one person and injuring several others in Port Harcourt.

 

Fubara gave the order during his visit to the site of the collapsed building last Thursday to assess the situation.

 

He said the site will remain “completely sealed off” until the  government gets to the “root cause” of the incident.

 

He described the incident as unfortunate but observed that preliminary investigation had shown that the developer had earlier refused  to subject his site to inspection by the state authorities and comply with the necessary  building regulations.

 

The governor, who inspected the site alongside the Commissioner for Physical Planning and Urban Development, Sir Amairigha Edward Hart, and the Permanent Secretary of the Ministry of Special Duties, Dabite Sokari George, explained  that he couldn’t visit the  site the previous day because he was awaiting formal briefing from the relevant agency of government on the situation.

 

“We’re here to see for ourselves the very unfortunate incident that took place here.  I didn’t come yesterday because I wanted to get the report first, and the Commissioner did brief me that the incident site, first, is not as claimed by the developer, that it’s not under the jurisdiction of the state; that it’s under the jurisdiction of the Federal Housing Authority.

 

“He also informed me that when the project was ongoing, they came here severally to inspect what  was happening and also to see the level of compliance. But unfortunately, that the developer kept claiming that we don’t have any right to interfere,” he said.

 

Fubara said that the issue was no longer about interference but about the life lost to the building collapse and the collateral damage brought upon the family of the deceased.

 

He extended condolences to the families of the victims, insisting that the incident could have been avoided if the developer had complied with the rules guiding  the  engineering design and construction of such a structure in the 21st century.

 

“We feel very sorry and very regretful that such an incident should be happening in this 21st century because technology has advanced, engineering has developed. I wonder what kind of engineer would even allow this kind of project to go on when everything about it from inception has been faulty.

 

“I think that at this point, nothing is going to happen on this site any more. We are going to make sure that this place is completely sealed off until we get to the root cause of this incident,”  the governor said.

 

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TCN Announces Blackout In Five States

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The Transmission Commission of Nigeria has announced electricity disruption in parts of Kano, Katsina, Jigawa, Bauchi, and Yobe States, as well as Gazaoua in the Niger Republic.

The spokesperson of TCN, Ndidi Mbah, disclosed this in a statement yesterday

The outage is due to planned maintenance at Kumbotos’ 330 kilovolt transmission substation on Sunday.

Consequently, electricity customers served by Kano Electricity Distribution Company, Kaduna Electricity Distribution Company, and Yola Electricity Distribution Company will experience power disruption.

“The scheduled maintenance is to enable the TCN contractor to continue the ongoing upgrade of 330kV bus II jumpers and replace the existing 350mm² conductors with 800mm² conductors in order to strengthen the transmission network and improve power reliability.

“As a result, Kano Electricity Distribution Company (KEDCO) and some part of Jos Electricity Distribution Company (JEDC) and Yola Electricity Distribution Company (YEDC) will be unable to off-take power for distribution to their customers in Kano, Katsina, and Jigawa States, as well as Azare in Bauchi State, Nguru in Yobe State, and also Gazaoua in the Niger Republic,” TCN stated.

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Probe N6.3bn Constituency Funds Or Face Legal Action, SERAP Tells Akpabio, Abbas

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The Socio-Economic Rights and Accountability Project (SERAP) has called on Senate President, Godswill Akpabio, and Speaker of the House of Representatives, Tajudeen Abbas, to refer allegations of the diversion or non-accounting of over ?6.3 billion in constituency project funds to anti-corruption agencies for investigation and possible prosecution.

 

The group also urged the National Assembly leadership to ensure that anyone found culpable is prosecuted where sufficient admissible evidence exists, while all diverted or unaccounted public funds are recovered and paid into the treasury.

 

In a letter dated June 27, 2026, and signed by its Deputy Director, Kolawole Oluwadare, SERAP said the allegations were contained in the Auditor-General of the Federation’s 2022 Annual Report, published on September 9, 2025.

 

The organisation disclosed this in a statement signed and released by Oluwadare, yesterday.

 

SERAP also asked Akpabio and Abbas to disclose the identities of contractors and companies, including their shareholders and beneficial owners, that allegedly received constituency project funds but failed to execute the projects.

 

It gave the National Assembly seven days to act on its recommendations, warning that it would institute legal proceedings should the legislature fail to respond.

 

“We would be grateful if the recommended measures are taken within seven days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel you and the National Assembly to comply with our request in the public interest,” the letter stated.

 

It said, “The allegations involve several federal ministries, departments and agencies, including the Environmental Health Registration Council of Nigeria (EHORECON); the Federal College of Animal Health and Production Technology, Volm; the Federal Polytechnic, Udana; the National Agency for the Prohibition of Trafficking in Persons (NAPTIP); and the National Institute of Legislative and Democratic Studies (NILDS).

 

“The Auditor-General identified numerous cases of payments into private bank accounts, contracts awarded without due process, payments for contracts not executed or services not rendered, undocumented expenditures, inflated contracts, procurement irregularities and failures to account for public funds, recommending in each case that the funds be recovered and remitted to the treasury.

 

“According to the 2022 audited report, contained in pages 367 to 396, the Environmental Health Registration Council of Nigeria (EHORECON or Council) Abuja paid over ‘N22 million [N22,944,565.16] into the private account of some members of staff of the Council from the Constituency Projects Fund Account.

 

“There ‘was no evidence of the utilization of the funds and no explanations on the purpose for the payment of such amount into the individual accounts.”

 

SERAP added, “The Council (EHORECON) also in 2021 ‘awarded suspicious consultancy contracts of over N12 million [N12,030,818.29] for the development of Modern Abattoirs in Kebbi State and the supervision of 7 projects in Kebbi, Jigawa, and Headquarters Abuja.

“The money was to ‘produce bills of quantity, architectural design, structural design, mechanical design, and electrical designs for the contracts and supervision.’ But ‘the ‘items could not be found.’”

 

Altogether, SERAP said the Auditor-General’s 2022 report alleged EHORECON paid more than ?1.8 billion in constituency project funds through questionable transactions.

 

For the Federal College of Animal Health and Production Technology, Vom, SERAP said the institution “in 2022 reportedly ‘paid over N279 million [N279,700,500.00] to 3 contractors to empower and train youths in selected vocational areas in Borgu and Kontagora, Niger State, train women and youths in entrepreneurship in Niger East Senatorial District and to train youths and women in agro production and self-reliance in Barki Ladi/Riyom Federal Constituency, Plateau State.

 

“But the money was paid to the contractors without any document.’”

 

Other irregularities involving the college include another ?279.7 million in mobilisation fees allegedly paid without documentation, and more than ?629.4 million paid to unqualified contractors for various constituency projects without evidence of due process, contract advertisements or details of the contractors.

 

SERAP further alleged that the Auditor-General’s report identified multiple financial irregularities involving the Federal Polytechnic, Ukana, Akwa Ibom State, including over ?407 million allegedly paid as mobilisation fees without supporting documents, more than ?399 million paid to unqualified contractors, contracts allegedly inflated by over ?192 million, over ?279 million paid for projects not fully executed, ?50 million allegedly paid for an unexecuted borehole project, and more than ?83 million disbursed without the required documentation or approvals.

 

It also alleged that NAPTIP reportedly irregularly awarded contracts worth over ?21.8 million, paid more than ?176.8 million for logistics and consultancy services without supporting documents, and disbursed over ?89.6 million and ?4.4 million for projects that were allegedly not executed.

 

The report also alleged that NILDS failed to submit audited financial statements for 2012 to 2022, did not remit over ?15 million in stamp duties, and spent ?1.6 million without authorisation from the Office of the Accountant-General of the Federation.

 

SERAP said the report recommended the recovery of the affected funds and their remittance to the treasury.

 

It argued that corruption in constituency projects disproportionately affects poor and vulnerable Nigerians by diverting resources meant for public services and development.

 

It added that the National Assembly, in exercising its oversight responsibilities, should demonstrate leadership by ensuring accountability in the management of constituency project funds.

 

The organisation further argued that the allegations, if established, would amount to breaches of the Constitution, the Fiscal Responsibility Act 2007 and the Public Procurement Act 2007, which require transparency, accountability and due process in the management of public resources.

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