Kehinde Fajobi
Three major oil marketers—AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited—have petitioned the Federal High Court in Abuja to prevent Dangote Petroleum Refinery and Petrochemicals FZE from monopolising Nigeria’s petroleum sector.
The oil companies, in a filing submitted on November 5, argued that allowing Dangote Refinery to dominate the sector would harm Nigeria’s economy and lead to higher fuel prices.
They claim that, contrary to Dangote’s position, its refinery cannot meet the country’s daily fuel needs, as there is no evidence before the court to demonstrate this capacity.
The marketers’ response follows a suit from Dangote Refinery, which is challenging import licences granted to these companies by the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Nigeria National Petroleum Corporation Limited (NNPC).
Dangote contends that its refinery is capable of meeting domestic demand and argues that additional import licences are unnecessary.
It is asking the court to revoke existing import licences for other marketers and prohibit NMDPRA from issuing new ones, while seeking ₦100 billion in damages from NMDPRA.
Dangote Refinery’s lawsuit also requests an order directing NMDPRA to seal the storage facilities of these marketers and an injunction to prevent additional levies that affect its operations.
Dangote insists that restricting other companies from importing fuel would ensure stable prices and consistent supply.
In their response, the oil marketers argue that a monopoly would have severe consequences.
“If Nigeria puts all her energy eggs in one basket by allowing the plaintiff to be the sole producer and supplier…prices of petroleum products in Nigeria will continue to rise, and energy security will elude Nigeria,” they stated.
The marketers warned that any disruption in Dangote’s production chain could lead to a crisis, leaving Nigeria without sufficient reserves for at least 30 days—the time needed to secure and import fuel from international markets.
Highlighting their adherence to the law, the defendants said, “The import licences lawfully and validly issued to the defendants did not in any way whatsoever cripple the plaintiff’s business or its refinery.”
They further stated that their licences align with the Petroleum Industry Act of 2021 and the Federal Competition and Consumer Protection Act of 2018.
Justice Inyang Ekwo, presiding over the case, has adjourned the matter to January 20, 2025, encouraging both parties to seek an out-of-court settlement.