Nigerian Oil Marketers Fight Against Dangote's Monopoly on Energy Sector in Court

Three major oil marketers in Nigeri AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited, have approached the Federal High Court in Abuja to prevent Dangote Petroleum Refinery and Petrochemicals FZE from monopolizing the country's energy sector.

The marketers argue that such a monopoly would be detrimental to Nigeria, potentially leading to increased prices and energy insecurity.

The marketers assert that "if Nigeria puts all her energy eggs in one basket by stopping importation of petroleum products and allowing the Plaintiff to be the sole producer and supplier," it could result in rising prices and a lack of energy security.

They emphasize that any disruption in Dangote's production chain could plunge Nigeria into an energy crisis, as the country lacks sufficient reserves to cover a 30-day period needed for importing refined products.

Dangote Refinery, on the other hand, has filed a suit challenging the issuance of import licenses to these marketers, claiming that the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) breached the Petroleum Industry Act by issuing these licenses despite Dangote's capacity to meet the country's petroleum needs.

The refinery seeks an injunction to stop further issuance of import licenses and demands N100 billion in damages from NMDPRA for continuing to issue these licenses.

The court case, marked as FHC/ABJ/CS/1324/2024, also involves the Nigeria National Petroleum Corporation Limited (NNPC) as a defendant.

Justice Inyang Ekwo has adjourned the matter until January 20, 2025, to allow the parties to explore an out-of-court settlement.