In a latest legal confrontation, Dangote Refinery has filed a suit challenging the issuance of petroleum import licenses to several oil marketers, arguing that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) breached the Petroleum Industry Act (PIA) by allowing competitors to import refined products despite Dangote’s alleged capacity to meet national demand.
The lawsuit, filed under case number FHC/ABJ/CS/1324/2024, lists prominent oil marketers, NMDPRA, and the Nigerian National Petroleum Corporation Limited (NNPCL) as defendants.
Dangote Refinery contends that the NMDPRA’s authorization of import licenses to these marketers undermines its operations, which reportedly produce sufficient quantities of Automotive Gas Oil (AGO) and jet fuel.
The refinery is seeking damages of N100 billion against NMDPRA and an injunction to prevent further issuance or renewal of these licenses. Additionally, Dangote Refinery demands the court mandate the closure of storage facilities used by these marketers for imported petroleum products.
In defense, the oil marketers refuted Dangote’s claims, asserting that the refinery does not produce enough petroleum to satisfy Nigeria’s daily consumption.
They warned that granting Dangote a monopoly could destabilize Nigeria’s economy by driving up prices and exposing the country to risks in the event of supply disruptions at Dangote’s facility.
Furthermore, the defendants argued that competition in the petroleum market is essential to avoid energy insecurity and ensure stable pricing, as a sole-producer model could lead to price manipulation and resource shortages.
Justice Inyang Ekwo, presiding over the case, has adjourned proceedings until January 20, 2025, to encourage an out-of-court resolution. Meanwhile, the court has noted Dangote’s expressed willingness to potentially withdraw the suit, indicating a possible avenue for reconciliation between the parties.
