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Three oil marketers in the country, AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited, have requested the Federal High Court in Abuja to dismiss a suit filed by Dangote Petroleum Refinery and Petrochemicals.
The marketers, in a joint counter-affidavit marked FHC/ABJ/CS/1324/2024 and dated November 5, responded to an originating summons filed by Dangote Petroleum Refinery and Petrochemicals. They argued that granting Dangote Refinery’s application would spell disaster for the country’s oil sector.
They stressed that the plan to monopolise the oil sector is a recipe for disaster in Nigeria.
Dangote Refinery, in its originating summons dated 6 September, sued the Nigeria Midstream and Downstream Petroleum Regulatory Authority, Nigerian National Petroleum Corporation Limited, AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited as defendants.
Dangote sought the court’s declaration that NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licences for the importation of petroleum products. It argued that such licences should only be issued when there is a shortfall in petroleum product supply.
It also urged the court to declare that NMDPRA failed in its statutory duty under the PIA by not encouraging local refineries like Dangote Refinery.
Shafa, A. A. Rano, and Matrix Petroleum, however, responded that Dangote Refinery does not produce enough petroleum products to meet Nigeria’s daily consumption needs. They noted that the plaintiff had not presented any evidence to prove otherwise.
They argued that they are fully qualified to receive an import licence from NMDPRA, in accordance with Section 317(9) of the PIA.
They further stated that the import licences issued to them by NMDPRA were lawful and valid and did not harm Dangote Refinery’s business.
“The import licences lawfully issued to the defendants did not, in any way, affect the plaintiff’s business or its refinery,” they argued.
They insisted that granting Dangote Refinery the power to monopolise Nigeria’s petroleum industry, as it sought in the suit, would kill competition and lead to higher petroleum product prices, exacerbating Nigeria’s already struggling economy.
The marketers warned that such a move would lead to “untold hardship” for Nigerians and worsen the energy crisis in the country. They pointed out that relying solely on Dangote Refinery would leave Nigeria vulnerable if the refinery were to break down, causing a national energy crisis.
They stressed that without sufficient reserves to last for at least 30 days, Nigeria would face severe disruptions in petroleum product supply, should the refinery encounter any production issues.
They further argued that granting the reliefs sought by the plaintiff would leave Nigeria at the mercy of Dangote Refinery regarding the availability and pricing of petroleum products.
Justice Ekwo has scheduled January 20, 2025, for a report on settlement or service.
