Why oil marketers oppose Dangote’s suit

Marketers have asked the Federal High Court in Abuja to dismiss the suit filed by the Dangote Petroleum Refinery and Petrochemicals FZE seeking to void all recently issued licences for importing petroleum products into the country. Dangote Petroleum had in a statement on October 21 indicated its intention to discontinue the originating summons of September […]

Marketers have asked the Federal High Court in Abuja to dismiss the suit filed by the Dangote Petroleum Refinery and Petrochemicals FZE seeking to void all recently issued licences for importing petroleum products into the country.

Dangote Petroleum had in a statement on October 21 indicated its intention to discontinue the originating summons of September 6 brought against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for allegedly issuing licences to the Nigeria National Petroleum Corporation Limited (NNPCL), AYM Shafa Ltd, A.A. Rano Ltd, T. Time Petroleum Ltd and Matrix Petroleum Services Limited (Matrix).

The Dangote refinery requested the court to declare that the licences for the importation of petroleum products such as Automotive Gas Oil (AGO) and Jet-A1Fuel (aviation turbine fuel) into the country despite its production of these products was in breach of Section 317(8) and (9) of the Petroleum Industry Act (PIA).

However, in a joint counter affidavit filed on November 5, the marketers are contending that an alleged plan to monopolise the oil sector is a recipe for disaster in the country.

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They submitted that the Dangote refinery has not produced any proof before the court that it does not produce adequate petroleum products for the nation’s daily consumption.

They further submitted among others that, “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.”

Justice Inyang Ekwo had fixed January 20, 2025, for the hearing of the matter.