The Federal Competition and Consumer Protection Commission (FCCPC) has requested to be joined as a defendant in the ₦100 billion lawsuit filed by Dangote Petroleum Refinery against the Nigerian National Petroleum Company Limited (NNPCL) and other oil marketers over the importation of refined petroleum products.
However, Dangote Refinery strongly opposed the FCCPC’s application, arguing that the commission has no jurisdiction over a case governed by the Petroleum Industry Act (PIA) and should not interfere in the matter.
During a court session before Justice Inyang Ekwo at the Federal High Court in Abuja, FCCPC’s lawyer, Olanrewaju Oshinaike, argued that the commission must be included in the case as its outcome could affect its statutory mandate to regulate competition.
“There are grounds from the plaintiff’s case for believing that Dangote Refinery is attempting to create a monopoly in the production and distribution of petroleum products in Nigeria through the machinery of the court,” Oshinaike stated.
FCCPC contended that Nigeria operates a free-market economy, allowing multiple players in various sectors, including petroleum. The commission further emphasized that its mandate is to eliminate anti-competitive agreements, monopolies, and unfair trade practices, ensuring a level playing field in the petroleum sector.
The commission stated that if the court permits its joinder, it would seek the outright dismissal of Dangote Refinery’s suit to prevent any monopolistic control over the petroleum industry.
Opposing FCCPC’s move, Dangote Refinery’s legal team dismissed the commission as a “meddlesome interloper”, arguing that its involvement in the case is unwarranted.
The $20 billion Lekki-based refinery insisted that the dispute revolves around the PIA, which is under the jurisdiction of the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and not the FCCPC.
Dangote Refinery is challenging the issuance of import licenses by NMDPRA to NNPCL and several private oil marketers, arguing that the PIA only permits such licenses in cases of petroleum product shortfalls. The refinery is asking the court to:
• Nullify all import licenses issued by NMDPRA.
• Declare that NMDPRA violated the PIA by granting import permits.
• Award ₦100 billion in damages against NMDPRA for allegedly enabling illegal petroleum imports.
Oil marketers, including AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited, have filed counter-affidavits urging the court to dismiss the lawsuit. They argued that:
• Dangote Refinery does not currently meet Nigeria’s daily petroleum demand.
• Allowing Dangote Refinery to stop petroleum imports would lead to monopolization, harming competition and the economy.
• NMDPRA acted within its legal mandate to ensure market competition and prevent abuse of dominant positions.
Meanwhile, NNPCL has filed a preliminary objection to strike out Dangote Refinery’s suit, arguing that the entity sued was non-existent and that the case lacks jurisdiction.
At Wednesday’s hearing, NNPCL’s lawyer, Abimbola Ademola (SAN), urged the court to either strike out the case entirely or dismiss the second defendant from the suit. Dangote Refinery’s legal team, however, opposed this motion and asked the court to dismiss the objection.
After hearing arguments from all parties, Justice Inyang Ekwo adjourned the case to March 18, when he will deliver a ruling on NNPCL’s preliminary objection and FCCPC’s application to join the case.
The legal battle is shaping up to be a significant test for Nigeria’s oil and gas sector, with potential consequences for market competition, petroleum importation, and the role of regulators in the industry.
