Three oil marketers—AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited—are seeking the dismissal of a lawsuit brought against them by Dangote Petroleum Refinery and Petrochemicals at the Federal High Court in Abuja.
In a joint counter affidavit dated November 5, 2024, and filed under the reference FHC/ABJ/CS/1324/2024, the marketers contended that granting Dangote’s application would have dire consequences for the nation’s oil sector. They expressed concerns that attempts to monopolize the industry would lead to disaster for the country.
Dangote’s lawsuit, filed on September 6, 2024, named Nigeria Midstream and Downstream Petroleum Regulatory Authority and Nigerian National Petroleum Corporation Limited, along with the three marketers and several others as defendants. The refinery seeks a declaration that the NMDPRA violated the Petroleum Industry Act (PIA) by issuing import licenses for petroleum products without justification, claiming such licenses should be granted only in cases of product shortages. Furthermore, they accused the NMDPRA of failing to support local refiners like Dangote.
The marketers countered that Dangote does not produce sufficient petroleum products to meet Nigeria’s daily consumption needs, noting that the refinery has not provided evidence to the contrary. They asserted their eligibility for import licenses under Section 317(9) of the PIA, arguing they had fulfilled all legal requirements when obtaining their licenses from the NMDPRA.
They emphasized that the valid licenses granted to them do not hinder Dangote’s operations or the refinery’s business. They argue that granting Dangote a monopoly over Nigeria’s petroleum sector would undermine competitive pricing, aggravating the nation’s economic challenges and subjecting Nigerians to significant hardships.
They warned that if Nigeria relies solely on Dangote for petroleum production, it could lead to escalating prices and jeopardize energy security. If the refinery were to experience any operational issues, the country would face an energy crisis due to a lack of stockpiles to cover at least 30 days’ worth of consumption while awaiting imports.
The marketers further asserted that supporting Dangote’s claims would leave the nation vulnerable to their monopoly concerning the availability and pricing of petroleum products.
Justice Inyang Ekwo has scheduled a report on settlement or service for January 20, 2025.
Meanwhile, a recent Bloomberg report revealed that three foreign companies—Vitol Group, Trafigura Group, and BP Plc—account for approximately 75% of the output from Dangote’s 650,000-barrel-per-day refinery. The report highlighted that these firms have dominated the refinery’s shipments since production ramped up earlier this year.
From February 27 to October 10, the refinery has loaded nearly 6 million tons of fuel, which equals about 45 million barrels, with loading rates averaging around 35,000 tons daily in October. Dangote has reported processing rates of approximately 420,000 barrels per day.
The refinery’s output includes a variety of products such as diesel, aviation fuel, LPG, and gasoline, reshaping fuel trading dynamics in both Africa and Europe. The largest proportion of shipments consists of automotive gas oil (diesel), followed closely by fuel oil, accounting for over 60% of the total output. Other significant products processed include gasoline and jet fuel, catering primarily to the aviation sector.
