Dangote Petroleum Refinery and Petrochemicals FZE and the Federal Competition and Consumer Protection Commission (FCCPC) have taken opposing legal positions in an ongoing N100 billion import license lawsuit concerning allegations of monopoly in Nigeria’s oil and gas sector.
The lawsuit, marked FHC/ABJ/CS/1324/2024, seeks to nullify import licenses issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to several companies, including the Nigerian National Petroleum Company Limited (NNPCL), Matrix Petroleum Services Limited, and A.A. Rano Limited. Dangote Refinery argues that these licenses violate Sections 317(8) and (9) of the Petroleum Industry Act (PIA), as the refinery is already producing the required petroleum products domestically without shortages.
In response, Matrix Petroleum, A.A. Rano, and AYM Shafa Limited have filed motions urging the court to dismiss the suit, arguing that only NMDPRA and NNPCL have the legal authority to determine product shortages. Meanwhile, NNPCL’s counsel contends that Dangote Refinery incorrectly sued a non-existent entity, “Nigeria National Petroleum Corporation,” instead of the legally registered “Nigerian National Petroleum Company Limited.”
Amid the pending litigation, FCCPC filed a motion on January 5, 2025, seeking to join as a co-defendant. The Commission argues that the case could result in anti-competitive market conditions and create a monopoly in favor of Dangote Refinery. FCCPC maintains that Nigeria operates a free-market economy and that its mandate includes preventing anti-competitive practices.
Dangote Refinery has opposed FCCPC’s motion, asserting that the lawsuit is solely aimed at strengthening local refining capacity and ensuring compliance with the PIA. The refinery insists that NMDPRA should issue import licenses only when local production is insufficient. It also argues that FCCPC has no legal standing in the case, as the Commission is not empowered under the PIA to issue petroleum licenses or intervene in the sector’s regulatory framework.
The matter remains before Justice Inyang Ekwo, with a ruling expected on FCCPC’s application to join the suit.
Amid these legal disputes, Africa’s richest man, Aliko Dangote, has expressed willingness to sell his multibillion-dollar refinery to NNPCL following regulatory challenges and conflicts with equity partners. Dangote has previously accused other importers of introducing substandard petroleum products into the Nigerian market, prompting the government to allow marketers to purchase directly from Dangote Refinery after NNPCL withdrew as an intermediary.
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