The Nigerian National Petroleum Company Limited (NNPCL) has faced a major setback in its attempt to block a lawsuit filed by Dangote Petroleum Refinery over fuel importation rights. This legal battle, which is making headlines across the nation, has stirred conversations about competition, monopoly, and the future of Nigeria’s petroleum industry.
The Federal High Court in Abuja, on Tuesday, dismissed the request by the Federal Competition and Consumer Protection Commission (FCCPC) to be included in the lawsuit initiated by Dangote Petroleum Refinery. The court’s decision was made by Justice Inyang Ekwo, who stated that the case could be effectively handled without the FCCPC’s involvement.
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The dispute revolves around the alleged unlawful issuance of import licenses by the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to NNPCL and several oil marketers, including AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited. These companies were named as defendants in the suit, which is marked FHC/ABJ/CS/1324/2024.
Dangote Refinery claims that NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act by issuing import licenses for refined petroleum products. According to Dangote Refinery, these licenses should only be granted in cases where there is a shortage of petroleum products. The company insists it has the capacity to meet local demand for petroleum, making the import licenses unnecessary and harmful to its business interests.
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In addition to demanding the cancellation of the licenses, Dangote Refinery is also seeking N100 billion in damages against NMDPRA for allegedly continuing to issue these import licenses despite the refinery’s capacity to meet local petroleum needs.
The FCCPC, which had attempted to join the lawsuit, argued that Dangote Refinery’s actions were aimed at monopolizing the petroleum industry, a move that contradicts the commission’s mandate to ensure a competitive and free market. The commission stated that the court’s judgment would directly impact its role in promoting fair competition within the petroleum industry.
However, Dangote Refinery opposed the FCCPC’s application, describing the commission as an unnecessary meddler with no legitimate role in a case focused on the Petroleum Industry Act. The refinery maintained that the commission’s involvement was irrelevant to the legal arguments being made.
Meanwhile, NNPCL, the second defendant in the case, also filed a preliminary objection, challenging the court’s authority to hear the matter. NNPCL argued that the plaintiff wrongly named the company as “NNPC,” which does not exist, as its official name registered with the Corporate Affairs Commission is the Nigerian National Petroleum Company Limited.
NNPCL further claimed that the lawsuit was premature and that Dangote Refinery lacked the legal standing to bring the case before the court. However, Justice Ekwo dismissed NNPCL’s objections, stating that they lacked merit.
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The judge also granted permission for Dangote Refinery to amend the lawsuit to properly reflect the official name of NNPCL. The matter has been adjourned to March 6 for further mention, keeping the public and stakeholders eagerly awaiting the outcome of this high-profile legal battle.
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