Oil Marketers Challenge Dangote Refinery’s Bid to Restrict Petroleum Import Licenses, Warn of Economic Impact

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Three major oil marketers—AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited—have jointly urged the Federal High Court in Abuja to dismiss a lawsuit filed by Dangote Petroleum Refinery and Petrochemicals. In their counter affidavit, filed on November 5, 2024, the marketers argue that supporting Dangote’s move to limit petroleum import licenses would harm Nigeria’s oil sector.

The lawsuit, initially filed by Dangote Refinery on September 6, 2024, accuses the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Nigeria National Petroleum Corporation Limited (NNPC), along with several marketers, of violating the Petroleum Industry Act (PIA) by improperly issuing petroleum import licenses without proving a product shortage.

Dangote Refinery seeks a court declaration that NMDPRA’s licensing practices violate its duty under the PIA to promote local refineries. However, Shafa, A. A. Rano, and Matrix Petroleum counter that Dangote’s refinery lacks the capacity to meet Nigeria’s daily fuel demands, and they stress that they have met all legal requirements to obtain their import licenses.

The marketers argue that granting Dangote Refinery monopoly power would increase fuel costs, stifle competition, and worsen Nigeria’s struggling economy. They caution that relying solely on Dangote’s refinery could lead to severe energy shortages should production be disrupted, potentially sparking a national energy crisis.

They contend that Nigeria’s energy security hinges on a balanced approach between local refining and importation, warning that monopolizing the sector would create a “recipe for disaster” in the nation’s energy landscape.

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