Private Sector Disagrees As Court Grants FG 7-Day Deadline For Price Regulation

The Federal High Court in Lagos has issued an order to the Nigerian government, mandating it to regulate prices of various goods and petroleum products within seven days. The court’s decision, delivered by Justice Ambrose Lewis-Allagoa, includes fixing prices for items such as milk, flour, salt, sugar, bicycles, and petroleum products like diesel, petrol, and kerosene.

However, the private sector, represented by various organizations, has opposed the court’s ruling. They argue that the government should only regulate prices for services it provides, not for products of private enterprises. The government is yet to respond officially, stating that they will study the judgment before deciding on their course of action.

The economic situation in Nigeria has worsened since the removal of fuel subsidies in May 2023, leading to increased food inflation, transportation costs, and overall living expenses. This has sparked protests in cities like Minna and Lokoja, where residents have expressed their grievances over the rising cost of living.

The court case was initiated by human rights activist Femi Falana, who sought to compel the government to fulfill its duty under the Price Control Act by fixing prices for essential goods. Despite the absence of a response from the defendants, the court ruled in favor of Falana’s motion, emphasizing the government’s obligation to stabilize prices and protect consumers.

In response to the court order, various stakeholders in the economy, including the Nigerian Economic Summit Group and oil marketers, have expressed their opposition, citing concerns about the impact on production and market dynamics. Meanwhile, protests continue in cities like Minna and Lokoja, highlighting the widespread frustration over the high cost of living across the country.