Three oil marketers—AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited—have filed a request with the Federal High Court in Abuja to dismiss a lawsuit brought by Dangote Petroleum Refinery and Petrochemicals. In a counter affidavit, dated November 5, 2024, and marked FHC/ABJ/CS/1324/2024, the marketers argued that granting Dangote’s application would negatively impact Nigeria’s oil industry, potentially creating a harmful monopoly.
According to the marketers, Dangote’s plan to monopolize the oil sector poses significant risks. “Allowing such a monopoly would kill competitive pricing and deteriorate the country’s struggling economy,” they contended, highlighting that competitive pricing is essential for consumer welfare and market stability.
Dangote Refinery, in a separate suit filed on September 6, 2024, had requested the court to declare that the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) was violating Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing import licenses. The refinery argued that such licenses should only be issued in cases of a supply shortfall and claimed that NMDPRA had failed in its statutory duty to encourage local refining efforts.
However, the marketers responded that Dangote does not produce sufficient petroleum products to meet Nigeria’s demand. “The import licenses lawfully issued did not impair Dangote’s business in any way,” they argued, asserting that they were fully qualified for the licenses granted by NMDPRA, having met all legal requirements.
The marketers warned that if Dangote were granted a monopoly, the country could face rising fuel prices, unreliable energy security, and even potential crises should Dangote’s facility experience a breakdown. “If Nigeria places all its energy security on one supplier, we risk energy crises, especially if the refinery encounters production issues,” they stated. They cautioned that a monopoly in Nigeria’s oil sector would create “a recipe for disaster in the energy sector.”
Justice Inyang Ekwo, presiding over the case, has scheduled January 20, 2025, for a report of settlement or service.
Dangote’s Exports Drive African and European Fuel Markets
Meanwhile, Dangote’s refinery, now producing diesel, aviation fuel, and LPG, has seen strong international demand. According to Bloomberg, three foreign firms—Vitol Group, Trafigura Group, and BP Plc—have accounted for about 75% of the refinery’s exports. Since initiating fuel flows mid-year, the refinery has already processed nearly 6 million tons of fuel, approximately 45 million barrels, with recent processing rates reaching about 420,000 barrels a day.
The emergence of Dangote Refinery, Africa’s largest, is reshaping fuel trading across Africa and Europe, alleviating an oversupply of Nigerian crude and making a significant impact on global fuel markets.
