Editorial
That Court Ruling On Deregulation
On Tuesday, March 19, 2013, a landmark judgment that leaves behind some far-reaching socio-economic consequences on the Nigerian state was delivered by a Federal High Court sitting in Abuja.
The presiding judge, Justice Adamu Bello, had declared as unconstitutional, illegal null and void, the Federal Government’s planned deregulation of the downstream petroleum industry on account of the fact that the policy violates the provision of Section 4 of the Price Control Act, Cap P.28 Laws of the Federation of Nigeria, 2004.
The Federal Government has long sought to deregulate the downstream oil sector by allowing prices of petroleum products to be determined by the regular interplay of demand and supply as is the international practice.
It is, indeed, for this reason that government has continued to insist on the complete removal of subsidies on petroleum products.
The last bold attempt at subsidy withdrawal was on January 1, 2012 when President Goodluck Jonathan, in a New Year broadcast to the nation, announced the Federal Government’s decision to increase the pump price of petrol from N65.00 to N141.00.
This singular pronouncement sparked off a week-long nationwide workers’ strike and sporadic riots across the country, forcing the government to beat a hasty retreat by coming up with a more acceptable price of N97.00 per litre after a round of rushed parleys with Labour representatives and some state chief executives.
But even as these events were playing out, a Lagos-based lawyer and human rights activist, Mr. Bamidele Aturu, went to court to challenge the Federal Government’s attempt to hands-off the fixing of petroleum products prices contrary to the provisions of the Petroleum Act and the Price Control Act.
Aturu had in his suit which also joined the Minister of Petroleum Resources and the Attorney-General of the Federation as co-defendants, prayed the court to determine whether the government’s deregulation policy would not make freedom of movement guaranteed by Section 41 of the 1999 Constitution illusory for the generality of Nigerians.
In addition to granting the plaintiff’s prayers in full, the judge also ordered the Federal Government to continue to fix, regulate and regularly publish prices of petroleum products across the country.
With the court ruling, it will appear that the Federal Government cannot necessarily allow the industry operators to determine the prices of petroleum products as that will amount to flouting the Price Control Act.
To cross such hurdles, government must do the right things because lack of action on this matter could spell doom for the economy. The first step should be to amend the Petroleum Act and the Price Control Act through the National Assembly, in addition to persuading the Legislature to treat expeditiously, the passage of the Petroleum Industry Bill (PIB).
With the myriad of problems which Nigeria faces today, the court ruling which tends to question a major economic policy as the deregulation of the downstream oil sector cannot be treated with levity.
Even so, The Tide commends the presiding judge for his rare demonstration of judicial erudition without which some of the facts in the country’s existing statutes would have been taken for granted and only spell later-day doom.
Considering the Federal Government’s attachment and commitment to the policy and that it even allowed such a judgment to be delivered in the first place, portends a very good omen for the country’s judiciary.
This is why we commend the government, particularly the President, for demonstrating commendable neutrality in spite of his administration’s determination to deregulate the downstream petroleum sector, and for that reason refraining from interfering with the judicial process and allowing the rule of law to take its honourable course.
In fact, coming at a time when the President was preparing to hold consultations with Nigerians on how best to achieve his government’s subsidy withdrawal policy, nothing can better attest to his neutrality in this particular court ruling.
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Editorial
That Oshiomhole’s Call On FG’s Road Projects
There are moments in the life of a legislature when plain speaking becomes a public service. Senator Adams Oshiomhole provided such a moment on the floor of the Senate when he accused the Minister of Works, Senator David Umahi, of manifestly neglecting critical federal arteries in Edo and Delta States, and implored his colleagues to prevail on the Minister to adopt a more equitable and genuinely national approach to road infrastructure delivery. It was blunt, it was uncomfortable, and it was necessary.
The specifics of his complaint deserve restating. Drawing attention to the recent approval of some 20 new road projects despite the parlous state of existing ones, the former Edo State governor lamented that Nigerians cannot travel from Benin to Warri, Benin to Asaba, Benin to Auchi, or Auchi to Okene without encountering severe distress. He alleged a deliberate omission of these corridors from the national budget in the last three years, save for palliative interventions directed by President Bola Tinubu through tax credit arrangements. His question — “What have we done wrong?” — resonates far beyond the chambers of the National Assembly.
We lend our full and unequivocal support to that call. The Auchi-Benin Road, for instance, has been in a deplorable and near-impassable condition for several years, turning what should be a two-hour journey into an all-day ordeal of broken axles, extortionate fares, and despondent commuters. The media have, on multiple occasions, chronicled the suffering of motorists, traders, and students who ply that route. To describe it as a federal road today is to stretch the meaning of the term beyond recognition.
This pattern of sidelining is not confined to Edo or Delta. Even here in Rivers State, the disposition of the Federal Ministry of Works has left much to be desired, particularly along the Eleme axis of the East-West Road. That road, which ought to be a flagship of federal presence in the Niger Delta, has remained in a wretched state for long. Those who use it daily — workers at the Eleme Petrochemical Complex, the two refineries, Onne Port, and the countless ancillary industries — can attest to its deterioration. Work has proceeded in fits and starts without the sustained urgency such a strategic road demands.
The Eleme stretch is not a mere intra-state byway. It is the gateway to the nation’s economic jugular. According to the Federal Ministry of Works and Housing’s 2023 Highway Condition Survey, only about 35 per cent of the country’s 36,000 kilometres of federal roads are rated as being in good or fair condition, with the remainder classified as poor or very poor. The East-West Road, conceived in the 1970s to bind the entire Niger Delta, remains unfinished in critical sections more than four decades after. If it had been treated as a priority, the perennial gridlock, carnage, and economic loss on the Eleme-Refinery junction would have long been consigned to history.
The irony is as painful as it is glaring. The Niger Delta remains the goose that lays the golden eggs. Data from the Nigeria Extractive Industries Transparency Initiative [NEITI 2023 Oil and Gas Audit] show that the region still accounts for over 78 per cent of Nigeria’s federally collected export earnings and about 65 per cent of total government revenue. The National Bureau of Statistics [NBS Foreign Trade Report Q4 2024] similarly confirms that crude oil continues to dominate export receipts. By every metric of equity and economic logic, a region that sustains the national purse deserves first-rate consideration in the allocation of infrastructure, not afterthoughts and tokenism.
Road infrastructure is not largesse to be dispensed by favour; it is the skeleton upon which commerce, cohesion, and citizenship hang. When contracts are concentrated in one geopolitical zone while other zones are left to contend with craters, it erodes trust in the federation itself. The World Bank’s Nigeria Development Update [June 2023] estimated that poor transport connectivity inflates the cost of moving goods by up to 40 per cent and costs the Nigerian economy an estimated $1.5 billion annually in lost man-hours and vehicle maintenance. If we profess to be one country, then equity must be the compass that guides key institutions before any project is executed. Development must spread round, not pool in one place as though other regions do not matter.
There is also a grave security dimension that can no longer be ignored. The deplorable condition of federal roads has become a veritable enabler of criminality. The NBS Crime Experience and Security Perception Survey reported over 2.5 million incidents of kidnapping-related occurrences nationally, with transport workers identifying bad road spots as prime ambush points. When vehicles are forced to crawl at 10 kilometres per hour through failed sections at Auchi, Sapele Road, or Eleme, they become sitting ducks for armed gangs. Fixing bad roads, therefore, is not merely about convenience; it is about safeguarding lives.
By his intervention, Senator Oshiomhole has hit the nail on the head and reminded Minister Umahi of a fundamental constitutional truth: public office is held in trust. The Ministry of Works is not a personal estate where contracts are awarded according to whim or political convenience. It is a national institution funded by the collective resources of Nigerians, including the oil and gas rents from the very communities whose roads are now neglected. The Minister must demonstrate balance, transparency, and a pan-Nigerian outlook in the distribution of projects that impact the daily existence of citizens. Selective neglect breeds suspicion, and suspicion is corrosive at a time when the nation is preaching unity, oneness, equity, and justice.
Consequently, the National Assembly must go beyond rhetoric and assert its oversight powers with vigour. Sections 88 and 89 of the 1999 Constitution [as amended] empower the legislature to investigate and expose any maladministration in the execution of federal projects. If an office holder is not acting rightly, it is the duty of the Senate and the House of Representatives to call him to order. Oversight must not be reduced to budget approval ceremonies; it must translate to field verification, public hearings, and insistence that the Federal Character principle, as enshrined in Section 14(3) of the Constitution, reflects in road awards.
Let the Auchi-Okene, Benin-Warri, Benin-Asaba, and Eleme East-West gangways be restored to motorable dignity. Let priority be given to completing existing, economically vital roads before embarking on new ones. If those who, through their resources, sustain the federation are sidelined in the distribution of tangible dividends, it tells poorly of our nationhood. Bad roads must be fixed, and they must be fixed now, with fairness as the guiding standard.
Editorial
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