Three major oil marketers—AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited—have filed a counter-affidavit in Nigeria’s Federal High Court, Abuja, in response to a lawsuit by Dangote Petroleum Refinery and Petrochemicals.
Dangote’s suit, initiated in early September, argues that Nigeria’s Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) violated sections of the Petroleum Industry Act (PIA) by granting licenses to multiple companies for fuel importation, rather than prioritizing local refinery production.
Dangote is seeking court intervention to restrict import licenses to cases where there is a documented shortage in local fuel supplies, aiming to protect and strengthen the local refining industry.
In their response, the marketers contend that Dangote’s bid to limit import licenses could disrupt Nigeria’s energy market. They argue that restricting fuel imports would enable Dangote to monopolize petroleum supply, allowing it to dictate fuel prices nationwide.
The marketers claim such a monopoly would increase fuel costs, weaken competition, and lead to economic challenges for the country’s already strained economy. They warned that relying solely on a single refinery could create severe supply issues if any disruptions occurred at the plant.
Additionally, the oil marketers maintain that they meet all legal criteria for importing fuel under the PIA, emphasizing that the NMDPRA’s decision to grant them import licenses complies with Nigerian law.
They insist that a competitive market is vital for ensuring stable fuel prices, given that Dangote’s refinery alone may not produce enough fuel to satisfy Nigeria’s daily needs.
“The import licences lawfully and validly issued to the defendants did not in any way whatsoever, cripple the plaintiff’s business or its refinery.
“The import licenses issued to the defendants by the 1st defendant are in line with the provisions of the Petroleum Industry Act, 2021, the Federal Competition and Consumer Protection Act, 2018, and other relevant laws,” they contended.
Justice Inyang Ekwo, the presiding judge, has scheduled a follow-up hearing for January 20, 2025, to discuss possible resolutions or further actions in the case.
Meanwhile, reports indicate that Dangote’s refinery has been primarily exporting its output, with around 75 percent going to international buyers like Vitol Group, Trafigura Group, and BP.
This export trend has shifted Nigerian crude trading in both Africa and Europe, as the refinery’s production ramps up to full capacity, expected to reach 650,000 barrels per day.
