Dangote refinery, FCCPC clash as NNPCL stands firm on fuel imports

The Federal Competition and Consumer Protection Commission (FCCPC) has requested the Federal High Court in Abuja to allow it to join the N100 billion lawsuit filed by Dangote Petroleum Refinery against the Nigerian National Petroleum Company Limited (NNPCL) and oil marketers over the importation of refined petroleum products.

However, Dangote Refinery opposed FCCPC’s application, arguing that the commission has no legal standing in a case concerning the Petroleum Industry Act (PIA), an Act of the National Assembly.

The refinery described FCCPC as a “meddlesome interloper” with no role in the matter.

FCCPC asserted that it should be included as a defendant in the case to challenge Dangote Refinery’s lawsuit, arguing that the refinery’s attempt to monopolize the petroleum sector contradicts its mandate of promoting a free-market economy.

Appearing before Justice Inyang Ekwo, FCCPC’s lawyer, Olanrewaju Oshinaike, emphasized that any ruling on the case would directly impact the commission’s regulatory responsibilities. He stated that the core issue in Dangote Refinery’s suit involves anti-competition and monopoly in the petroleum industry, which contradicts Nigeria’s free-market principles.

The commission further argued that its establishment act mandates it to prevent anti-competitive agreements and practices that could restrict fair participation in the petroleum product distribution chain.

“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 argued.

FCCPC also stated that its regulatory framework does not support monopolistic control over product manufacturing and distribution, including in the oil and gas sector. If granted permission to join the case, the commission intends to push for the complete dismissal of Dangote Refinery’s suit.

Dangote Refinery’s Legal Battle Against Fuel Imports

Dangote Refinery, a $20 billion facility in Lekki, Lagos, had filed the lawsuit, challenging the issuance of import licenses for refined petroleum products to NNPCL and oil marketers by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The refinery is demanding that the court invalidate the import licenses granted by NMDPRA, arguing that such licenses should only be issued in cases of product shortages, as stipulated in Sections 317(8) and (9) of the Petroleum Industry Act. It also seeks N100 billion in damages from NMDPRA for allegedly continuing to issue import licenses to NNPCL and five oil companies.

The companies named as defendants in the suit include:

• NNPCL
• NMDPRA
• AYM Shafa Limited
• A.A. Rano Limited
• T. Time Petroleum Limited
• 2015 Petroleum Limited
• Matrix Petroleum Services Limited

In response, AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited filed counter-affidavits, urging the court to dismiss the lawsuit. They argued that:

• Dangote Refinery’s production does not yet meet the national daily petroleum demand, making fuel imports necessary.
• Restricting imports would create a monopoly, which contradicts NMDPRA’s mandate to foster competition and prevent market dominance.
• The import licenses were lawfully issued in line with the PIA, the FCCPC Act, and other relevant regulations.

Meanwhile, the NNPCL filed a preliminary objection, urging the court to dismiss the lawsuit on the grounds that the entity sued was non-existent.

According to Punch, during Wednesday’s hearing, 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.”

However, Dangote Refinery’s legal team opposed the preliminary objection, requesting the court to reject it.

After hearing arguments from all parties, Justice Inyang Ekwo adjourned the case to March 18, 2025, when the court will rule on the preliminary objection filed by NNPCL and the FCCPC’s request to join the lawsuit.