Three oil marketing firms—AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited—have filed a joint response to a lawsuit by Dangote Petroleum Refinery and Petrochemicals at the Federal High Court in Abuja.
The marketers are urging the court to dismiss Dangote’s suit, which they argue could monopolize the oil industry, posing risks to Nigeria's economy and energy stability.
This response, filed as a counter affidavit under reference FHC/ABJ/CS/1324/2024, contests Dangote’s bid to restrict import licenses for petroleum products, which it claims should only be issued when there’s a supply shortfall.
. Dangote argues that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian National Petroleum Corporation Limited (NNPCL) have violated the Petroleum Industry Act (PIA) by allowing import licenses despite local production capacity.
I'mDangote’s original suit, filed in September 2024, names NMDPRA, NNPCL, AYM Shafa, A. A. Rano, T. Time Petroleum, 2015 Petroleum, and Matrix Petroleum as defendants.
. The marketers argue that Dangote’s refinery does not yet produce enough fuel for Nigeria’s daily needs, and restricting imports would make Dangote the sole supplier, undermining competition and risking supply shortages.
They believe that granting Dangote’s request would allow it to dictate prices, which could lead to soaring costs for consumers. A. A. Rano, Shafa, and Matrix highlight that their licenses are lawful, having fulfilled all regulatory requirements under the PIA and other relevant laws.
. claim your offer nowFurthermore, they contend that if Dangote gains exclusive rights over petroleum supply, any disruption in its production would create a severe energy crisis in Nigeria, as Dangote’s refinery alone would be insufficient to sustain national demand in the event of breakdowns. They assert that diversity in the industry is essential for stable fuel pricing and energy security.
The case’s next hearing is set for January 20, 2025, as Justice Inyang Ekwo awaits a report on potential settlement.
Meanwhile, Dangote’s operations continue to expand internationally. According to a Bloomberg report, approximately 75% of the refinery's 650,000-barrel-per-day output is being exported to three major
foreign firms: Vitol Group, Trafigura Group, and BP Plc, which dominate the refinery’s exports. Since launching operations in early 2024, the refinery has processed nearly 6 million tons of fuel, reaching production rates of about 420,000 barrels per day.
. Diesel and fuel oil comprise most exports, while the plant also supplies local markets with gasoline, jet fuel, and other petroleum products.
The outcome of this legal battle could significantly impact Nigeria’s oil sector by defining whether a single entity can dominate the industry or if competition will be maintained through multiple importers.
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