Dangote Petroleum Refinery’s lawsuit against the Nigerian National Petroleum Company Limited (NNPCL) and oil marketers over fuel imports has taken a new turn as the Federal Competition and Consumer Protection Commission (FCCPC) seeks to join the case.
The refinery, which invested $20 billion in its facility in Lekki, Lagos, argues that issuing import licenses contradicts the Petroleum Industry Act (PIA).
However, FCCPC maintains that restricting imports would create a monopoly, contradicting Nigeria’s free-market principles.
The commission insists that its role as a regulatory body requires it to challenge any move that could limit competition in the petroleum sector.
FCCPC’s lawyer, Olanrewaju Oshinaike, emphasized in court that the case directly affects the commission’s mandate.
“There are strong grounds to believe that the plaintiff (Dangote Refinery) is attempting to create a monopoly in the production and distribution of petroleum products through judicial intervention,” Oshinaike stated.
The commission further argued that Nigeria’s economy depends on open market policies, and any restriction on petroleum imports would harm competition and lead to market domination.
Meanwhile, NNPCL and several oil marketers, including AYM Shafa Limited and A.A. Rano Limited, also opposed Dangote Refinery’s lawsuit, stating that local production does not yet meet national demand.
In response, Dangote Refinery opposed FCCPC’s request, arguing that the commission lacks legal standing in a case governed by the PIA.
The refinery labeled FCCPC a “meddlesome interloper” with no authority over petroleum sector regulations.
It insists that the court should invalidate fuel import licenses granted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), claiming such licenses should only be issued in cases of product shortages, as outlined in Sections 317(8) and (9) of the PIA.
Additionally, the refinery is seeking N100 billion in damages from NMDPRA for allegedly continuing to issue import permits despite its objections.
The legal battle has drawn strong opposition from multiple stakeholders, with NNPCL filing a preliminary objection, urging the court to dismiss the lawsuit.
NNPCL’s lawyer, Abimbola Ademola (SAN), argued, “We are seeking an order of this court striking out this suit for lack of jurisdiction or, in the alternative, striking out the 2nd defendant’s suit.”
Meanwhile, Dangote Refinery remains firm in its stance, believing that reducing fuel imports would support local production and strengthen Nigeria’s energy independence.
Justice Inyang Ekwo adjourned the case to March 18, 2025, when a ruling will be delivered on the preliminary objection and FCCPC’s request to join the case.