By Uzair Adam
Three prominent oil marketing firms in Nigeria have filed a motion at the Federal High Court in Abuja to prevent Dangote Petroleum Refinery and Petrochemicals FZE from establishing a monopoly within the country’s energy sector.
The companies—AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited—argued that giving Dangote control over the oil industry could be detrimental to Nigeria’s economy.
Efforts to reach the Group Head of Communications at Dangote Group, Mr. Anthony Chiejina, for comment were unsuccessful, as calls and messages went unanswered.
The oil marketers filed their response after Dangote’s firm challenged the validity of licenses that the marketers had obtained to import refined petroleum products.
Dangote Refinery had initially brought a suit, marked FHC/ABJ/CS/1324/2024, against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigeria National Petroleum Corporation Limited (NNPC), and several oil marketing companies, arguing that it was unnecessary to issue import licenses for refined products, given Dangote’s local production capacity.
The plaintiff claims that NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by allowing other companies to import refined products like Automotive Gas Oil (AGO) and Jet-A1 fuel.
Dangote’s suit seeks N100 billion in damages from NMDPRA, asserting that the authority’s actions undermine local production capacity.
Additionally, Dangote requested an injunction to prevent further issuance or renewal of import licenses to these companies.
In their defense, the oil marketers countered that Dangote’s refinery does not produce enough petroleum products to meet Nigeria’s daily demand.
They argued that a monopoly would stifle competition, leading to rising product prices and an increased burden on consumers.
The companies also noted the risks involved if Dangote’s production chain encounters disruptions, potentially plunging Nigeria into an energy crisis.
The defendants highlighted that their import licenses were lawfully issued in compliance with the PIA, the Federal Competition and Consumer Protection Act, and other relevant legislation.
Justice Inyang Ekwo, overseeing the case, has adjourned proceedings to January 20, 2025, for potential out-of-court resolution.