NMDPRA Insists on Fair Competition, Opposes Dangote Refinery’s Monopoly Claim
NMDPRA Insists on Fair Competition, Opposes Dangote Refinery’s Monopoly Claim
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has affirmed its commitment to fostering competition in the oil and gas sector, stating it will not permit an “unhealthy monopoly.”
This stance comes as NMDPRA countered a lawsuit filed by Dangote Petroleum Refinery and Petrochemicals FZE, challenging the agency’s issuance of import licenses to several oil marketing companies. Dangote is seeking to void the licenses granted to the Nigerian National Petroleum Company Limited (NNPCL), AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.
In its counter-affidavit to the suit, marked FHC/ABJ/CS/1324/2024, NMDPRA defended its decision, emphasizing that Dangote Refinery’s current production levels are insufficient to meet Nigeria’s daily petroleum product demand.
Citing Section 317(9) of the Petroleum Industry Act (PIA), NMDPRA stated it issued licenses to companies with proven records in international product trading to bridge the shortfall and ensure steady supply.
The regulatory body denied Dangote’s allegations of a “grand conspiracy” against its refinery, asserting the claim lacked evidence. It further argued that promoting competition and preventing market dominance are among its core mandates.
AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited also opposed Dangote’s case, warning that granting the refinery’s request could destabilize the oil sector. They argued that Dangote Refinery has not demonstrated the capacity to meet the country’s petroleum needs and has provided no evidence to support its claims.
The NNPCL, in its preliminary objection, requested the court to strike out the case for lack of merit.
Meanwhile, Dangote Refinery has asked the court to declare the import licenses issued by NMDPRA as illegal, alleging the agency violated Sections 317(8) and (9) of the PIA. The refinery is also seeking ₦100 billion in damages for the alleged improper issuance of licenses.
Justice Inyang Ekwo, noting the case’s immaturity for hearing, adjourned proceedings to January 30. The court awaits further submissions from all parties involved.
