Why three major marketers sued the Dangote Refinery

• Three oil marketers have asked a Federal High Court in Abuja to stop what they called a move by Dangote Refinery to control the Nigerian energy sector
• The marketers disclosed that allowing the mega refinery to control the Nigerian oil sector would be disastrous for Nigeria
• The refinery, in an earlier suit, questioned the necessity of licenses issued to key oil marketers to import refined petroleum products into Nigeria

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

On Wednesday, November 6, 2024, three prominent oil marketers in Nigeria asked the Federal High Court in Abuja to stop Dangote Refinery's plot to take over the energy sector.

The marketers are AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited. They maintained that allowing the mega refinery to control the oil sector in Nigeria would not end well for the country.

Chairman of the Dangote Group, Aliko Dangote Credit: PIUS EKPEI UTOMI/Bloomberg/Contributor
Source: Getty Images

Marketers question Dangote Refinery’s stand

The Dangote Group has yet to respond to inquiries about the suit.

However, the oil marketers filed the suit in reply to challenge the competence of the suit the refinery filed to annul the licenses they secured to import petroleum products into Nigeria.

The marketers' other partners in the suit include the Nigerian Mindstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian National Petroleum Company Limited (NNPC).

Dangote Refinery moves to stop petrol import

The refinery, in an earlier suit, questioned the necessity of licenses issued to key oil marketers to import refined petroleum products into Nigeria when it had not failed to meet up to its production capacity.

Dangote Refinery averred that the NMDPRA breached Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licences to import petroleum products to the defendants.

The refinery told the court that the licenses were issued to the marketers despite Dangote Refinery's diesel and aviation fuel production exceeding Nigeria's daily consumption requirements.

It asked the court to award N100 billion in damages against the regulator, NMDPRA, for allegedly continuing to issue import licences to NNPC and oil marketers to import petroleum products.

Vanguard reports that it prayed to the court for an order to seal off all tank farms, storage facilities, warehouses, and stations used by the marketers to store all refined petroleum products imported into Nigeria. 

Marketers allege plot to control Nigeria’s energy sector

However, in a suit dated November 5, 2024, the three marketers told the court that Dangote Refinery does not produce enough products for Nigerians’ daily consumption, stating that there was nothing for the court to prove.

They told the court they were suitable and entitled to be given licenses by the NMDPRA to import petroleum products into Nigeria in line with provisions of Section 317(9) of the PIA Act.

They stated that giving the refinery the power to control the energy market in Nigeria’s petroleum industry would kill competition and competitive pricing of petroleum products and further deteriorate the economy.

Oil marketers vow to crash petrol prices

Legit.ng earlier reported that marketers have vowed to import petroleum products to crash prices below the one sold by the Dangote Refinery.

They disclosed that they had registered a business unit to ensure the import of cheaper petroleum products before December.

Meanwhile, Africa’s largest refinery had crashed its petrol prices further down to N990 per litre.

NNPC replies over inferior fuel claims

Legit.ng earlier reported that NNPC has categorically stated that it does not import inferior fuel and is not responsible for the recent petrol price increases.

In response to calls for Mele Kyari’s resignation over petrol price increases, the state oil firm said the protesters were misinformed about the causes of the fuel price increase.

The NNPC Chief Corporate Communications Officer, Olufemi Soneye, clarified this on Tuesday, November 5, 2024, as he also addressed the fuel quality distributed by the NNPC.

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Source: Legit.ng