Dangote sues FG, attempts to monopolise, regulate petrol importation

Dangote Refinery’s N100bn lawsuit challenges oil import licences, sparking concerns over monopoly and market control in Nigeria’s petroleum sector

[dropcap]D[/dropcap]angote Petroleum Refinery and Petrochemicals FZE is at the centre of a legal battle with the Federal Competition and Consumer Protection Commission (FCCPC) over its N100 billion lawsuit challenging petroleum import licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

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The case raises concerns about market monopoly and the regulatory boundaries of Nigeria’s oil and gas sector.

The suit, FHC/ABJ/CS/1324/2024, filed at the Federal High Court, Abuja, seeks to nullify import licences granted to companies including Nigerian National Petroleum Company Limited (NNPCL), Matrix Petroleum Services Limited, and A.A. Rano Limited.

Dangote Refinery argues that these firms should not import Automotive Gas Oil (AGO) and Jet Fuel, as they are now locally produced.

Represented by Dr. Ogwu James Onoja, SAN, and George Ibrahim, SAN, Dangote Refinery contends that NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by continuing to approve import licences despite no proven supply shortfall.

However, the affected companies, led by Matrix Petroleum, A.A. Rano, and AYM Shafa Limited, have filed motions to dismiss the suit, asserting that NMDPRA and NNPCL alone determine supply deficits, not private entities like Dangote.

NNPCL’s legal team, led by Ademola Abimbola, SAN, has raised a preliminary objection, stating that Dangote erroneously sued “Nigeria National Petroleum Corporation,” a defunct entity, instead of the legally recognised “Nigerian National Petroleum Company Limited.”

Abimbola further argued that NMDPRA is not legally bound to restrict import licences unless it applies the Backward Integration Policy in the downstream sector.

In response, Dangote’s legal team dismissed NNPCL’s objections, maintaining that the NMDPRA’s actions contradict the Petroleum Industry Act (PIA).

The case, presided over by Justice Inyang Ekwo, has been scheduled for the next hearing on February 5, 2025.

Adding to the legal complexities, the FCCPC filed a motion on January 5, 2025, seeking court approval to join the lawsuit as a co-defendant.

Represented by Barrister Olarenwaju Osinaike, the Commission argues that its interest in market competition and anti-monopoly regulations could be directly impacted by the case’s outcome.

It questions whether limiting petroleum importation to select players would create an unfair market advantage for Dangote Refinery.

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As the legal dispute unfolds, industry stakeholders are closely monitoring the case, which could redefine Nigeria’s oil import policies, regulatory framework, and competition laws.

With billions at stake, the final judgment will shape the future of petroleum supply, pricing, and market control in Nigeria.

Rtn. Victor Ojelabi

Ojelabi, the publisher of Freelanews, is an award winning and professionally trained mass communicator, who writes ruthlessly about pop culture, religion, politics and entertainment.