Three major oil marketers have strongly opposed Dangote Petroleum Refinery’s bid for monopoly control of Nigeria’s petroleum sector, warning that such a move could severely damage the country’s economy.
The marketers—AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited—are respondents in a lawsuit filed by Dangote Petroleum before a Federal High Court in Abuja. In the suit, Dangote seeks to nullify the import licenses issued to the Nigerian National Petroleum Company Limited (NNPCL) and five other oil firms, accusing the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of enabling unfair competition by continuing to grant import permits for refined petroleum products.
Dangote also seeks N100 billion in damages against NMDPRA for allegedly undermining its exclusive refinery operation with the ongoing importation of refined products by these companies.
In their defense, the three marketers argue that Dangote has not proven it produces enough refined petroleum to meet Nigeria’s daily consumption needs. They contend that the proposed monopoly would stifle competition, drive up prices, and worsen Nigeria’s already fragile economy. They warn that allowing Dangote to become the sole supplier of petroleum products could lead to skyrocketing costs and a devastating energy crisis, especially if there’s any disruption to Dangote’s refinery operations, which could leave the country unable to meet its energy needs.
“If Nigeria places all its energy resources in one basket and stops the importation of petroleum products, a single breakdown in Dangote’s supply chain could plunge the nation into an energy crisis,” the marketers argued in their response. They also emphasized that Nigeria does not have enough reserves to last for more than 30 days, making it critically dependent on imports to maintain supply.
The marketers highlighted that the import licenses issued to them were fully compliant with the Petroleum Industry Act (2021) and other relevant laws and did not negatively affect Dangote’s business operations. They stressed that granting Dangote a monopoly over Nigeria’s petroleum supply would undermine competitive pricing and jeopardize energy security in the country.
The marketers are calling on the court to dismiss Dangote’s suit, urging it not to legitimize what they see as an attempt to monopolize Nigeria’s vital oil industry.
At the October 21 court hearing, Dangote’s legal representative, Mr. George Ibrahim, SAN, informed the court that the marketers had initiated settlement discussions. He requested an adjournment to allow the parties to explore an out-of-court resolution. Justice Inyang Ekwo adjourned the case to January 20, 2025, for either a report on the settlement or the service of court documents.
On November 5, the marketers filed their formal response, reiterating their opposition to the proposed monopoly.
