Oil Marketers Warn Against Potential Monopoly by Dangote Refinery

Written on 07/11/2024
Tribune Online

Three Nigerian oil marketers have voiced concerns in a Federal High Court in Abuja, arguing that Dangote Petroleum Refinery and Petrochemicals’ alleged intent to monopolize the energy sector could have severe consequences for Nigeria’s oil industry.

The marketers claimed that allowing Dangote to dominate the market would lead to unfavorable outcomes for competition and market diversity, potentially destabilizing the sector.

This case highlights ongoing debates about market competition and control within Nigeria's strategic oil industry.



The three marketers, AYM Shafa Limited, A A Rano Limited and Matrix Petroleum Services Limited, in their replies to a suit filed by Dangote Petroleum, the Plaintiff in the suit numbered, FHC/CS/ABM/1324/2024, told the court that the Plaintiff does not produce adequate petroleum products for the daily consumption of Nigerians.

The plaintiff had, in September 2024, sued the Nigeria Midstream And Downstream Petroleum Regulatory Authority (NMDPRA), Nigeria National Petroleum Corporation Limited (NNPC), AYM Shafa Limited, A A Rano Limited, T Time Petroleum Limited, 2015 Petroleum Limited and Matrix Petroleum Services Limited. 

In the suit dated September 6, the plaintiff prayed the court to declare that NMDPRA violates Sections 317(eight) and (nine) of the Petroleum Industry Act by issuing licenses for the importation of petroleum products.

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