Three major oil marketers—AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited—have called on the Federal High Court in Abuja to dismiss a suit filed by Dangote Petroleum Refinery and Petrochemicals, which seeks to restrict the issuance of petroleum import licenses. The marketers, in a counter-affidavit dated November 5, argued that Dangote’s attempt to monopolize the oil sector would be detrimental to Nigeria’s economy and could lead to an increase in fuel prices, worsening the country’s energy crisis.
Dangote Refinery’s lawsuit, initially filed on September 6, challenges the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and several oil marketers over the issuance of import licenses. The refinery claims that under Sections 317(8) and (9) of the Petroleum Industry Act (PIA), such licenses should only be issued if there is a supply shortfall. Furthermore, Dangote argues that NMDPRA failed in its duty to support local refineries by issuing these licenses.
In response, the defendants assert that Dangote Refinery’s production is insufficient to meet Nigeria’s daily petroleum demand. They argue that they are qualified to import fuel under the PIA and that their import licenses are lawful and do not interfere with Dangote’s operations. The oil marketers further warn that granting Dangote exclusive control would stifle competition and lead to higher fuel prices, posing a serious threat to Nigeria’s struggling economy.
The defendants also highlighted the risks of relying solely on Dangote Refinery. They cautioned that any operational issues at the refinery could result in severe national shortages, as Nigeria lacks sufficient reserves to last even a month. This dependency, they contend, would expose Nigeria to vulnerabilities in supply and pricing.
Justice Ekwo has set January 20, 2025, for an update on possible settlement or further proceedings in the case.
