Dangote push for petrol monopoly spells disaster for Nigeria, marketers tell court

Three leading oil marketers in Nigeria, AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited, have warned the Federal High Court in Abuja against allowing Dangote Petroleum Refinery to monopolize Nigeria’s oil sector. In response to a suit filed by Dangote Petroleum, the marketers argued that giving Dangote a monopoly over petroleum production would harm Nigeria’s economy and energy security.

The marketers contended that Dangote’s refinery does not currently produce sufficient petroleum products to meet the country’s daily demand, with no evidence before the court to suggest otherwise.

The suit in question, marked FHC/CS/ABJ/1324/2024, was filed by Dangote Petroleum against the Nigeria Midstream And Downstream Petroleum Regulatory Authority (NMDPRA), Nigeria National Petroleum Corporation Limited (NNPCL), and several other oil companies.

Dangote is asking the court to declare that NMDPRA violated sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licenses for petroleum product imports, which it argues should only occur when there’s a supply shortfall.

In response, the oil marketers argued they were qualified to receive import licenses under Section 317(9) of the PIA. They stated that allowing Dangote to establish a monopoly would eliminate competitive pricing, worsening Nigeria’s already fragile economy and placing further strain on Nigerians.

They warned that entrusting Dangote with sole control over production and pricing would lead to continuous price increases for petroleum products, exacerbating energy insecurity.

The marketers urged the court to protect market competition, warning that “placing all of Nigeria’s energy reliance on one company’s production” would risk price inflation and leave the country vulnerable to potential supply disruptions.

“Amidst the glaring absence of any credible and demonstrable proof that the Plaintiff refines and supplies adequate petroleum products for the daily use/consumption of Nigerians, giving the plaintiff (Dangote) judicial imprimatur to be the sole supplier of refined petroleum products to Nigerians, thereby encouraging monopoly in a major aspect of Nigeria’s oil industry, is a recipe for disaster in Nigeria’s energy sector.”