Three major oil marketers—AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited—are challenging a suit filed by Dangote Petroleum Refinery and Petrochemicals, seeking to halt the company’s bid to control the oil import market in Nigeria.

In a joint affidavit submitted to the Federal High Court in Abuja, the marketers argued that if Dangote’s suit is approved, it would create a monopoly in the petroleum industry, crippling competition and driving prices higher. They emphasized that such a monopoly would worsen the country’s already fragile energy security and subject Nigerians to further economic strain.

Dangote Refinery initiated the lawsuit in September, asserting that the Nigeria Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, is violating the Petroleum Industry Act, PIA, by issuing import licenses without evidence of a fuel shortage. The refinery claims that only under such circumstances should licenses be granted, arguing that the current policies undermine local refineries.

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In response, Shafa, A. A. Rano, and Matrix Petroleum contend that Dangote Refinery does not meet Nigeria’s fuel demands, and that the import licenses they obtained from NMDPRA comply fully with the PIA and other relevant laws. They warned that entrusting a single entity with Nigeria’s fuel supply would place the nation’s energy security at risk. Any disruption at Dangote’s refinery could result in severe shortages, as the country lacks sufficient fuel reserves to cover a month-long delay.

The marketers further argued that allowing Dangote control over fuel pricing would result in higher costs for consumers and destabilize the economy. They urged the court to prioritize market competition to avoid “a recipe for disaster” in the energy sector.

Meanwhile, Dangote’s refinery has been primarily exporting products to foreign firms, including Vitol Group, Trafigura Group, and BP Plc, who collectively account for 75% of the refinery’s output. Since beginning production, Dangote Refinery has processed approximately 420,000 barrels per day, setting new standards in Africa’s petroleum market.

The case, overseen by Justice Inyang Ekwo, is scheduled for further discussions on January 20, 2025, allowing time for a potential settlement or additional hearings.

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