The ongoing legal battle between Dangote Petroleum Refinery and the Nigerian National Petroleum Company Limited (NNPCL), alongside several oil marketers, has taken a new turn as the Federal Competition and Consumer Protection Commission (FCCPC) seeks to officially join the case. The regulatory body has filed an application before the Federal High Court in Abuja, requesting to be included as a defendant in the N100 billion lawsuit initiated by Dangote Refinery.
FCCPC’s move is based on its mandate to regulate fair competition within Nigeria’s economic landscape. The commission argued that Dangote Refinery’s lawsuit is an attempt to monopolize the petroleum industry and restrict market competition, which contradicts Nigeria’s free-market principles.
However, Dangote Refinery has strongly opposed the commission’s application, asserting that the FCCPC has no legal standing in the case, which primarily revolves around the Petroleum Industry Act (PIA)—a law passed by the National Assembly to regulate the petroleum sector. The refinery labeled FCCPC as a “meddlesome interloper” that has no role in a dispute concerning the oil industry’s legal framework.
FCCPC’s Position on Dangote Refinery’s Lawsuit
During the court session, FCCPC’s legal representative, Olanrewaju Oshinaike, emphasized that the case’s outcome would have direct implications on the commission’s regulatory responsibilities. Oshinaike pointed out that allowing Dangote Refinery to block petroleum product imports would grant it unchecked dominance over the market, which is against Nigeria’s competition laws.
The FCCPC lawyer further argued that its establishment act mandates it to prevent anti-competitive practices and ensure consumer protection. He stated:
“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.”
Additionally, the commission highlighted that a competitive oil market benefits consumers by preventing price manipulation and ensuring product availability. If granted permission to join the case, FCCPC intends to advocate for the complete dismissal of Dangote Refinery’s lawsuit.
Dangote Refinery’s Case Against Fuel Imports
The legal dispute began when Dangote Refinery, a $20 billion facility located in Lekki, Lagos, sued the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) over the continued issuance of petroleum import licenses to oil marketers. The refinery contends that under the PIA, importation of refined petroleum products should only be permitted in cases of domestic shortages.
As part of its lawsuit, Dangote Refinery is demanding:
The court to revoke the import licenses granted to oil marketers.
A judicial declaration that importation should only occur under special circumstances, as outlined in the PIA.
N100 billion in damages from NMDPRA for allegedly undermining its market operations.
The lawsuit names several major oil companies as defendants, including:
Nigerian National Petroleum Company Limited (NNPCL)
Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)
AYM Shafa Limited
A.A. Rano Limited
T. Time Petroleum Limited
2015 Petroleum Limited
Matrix Petroleum Services Limited
NNPCL and Oil Marketers’ Response
In response, the oil marketers and NNPCL have strongly opposed the lawsuit, arguing that Dangote Refinery’s production does not yet meet Nigeria’s daily fuel demand. They insist that restricting fuel imports would create artificial shortages and drive up prices.
Three of the defendant companies—AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited—filed counter-affidavits urging the court to dismiss the case. They made the following points:
Nigeria’s current refining capacity is insufficient, making fuel imports necessary to prevent scarcity.
Blocking fuel imports would create a monopoly, which contradicts NMDPRA’s mandate to foster competition.
The import licenses were issued in accordance with the PIA and other existing regulations.
Meanwhile, NNPCL filed a preliminary objection challenging the lawsuit’s validity. NNPCL’s legal team, led by Senior Advocate of Nigeria (SAN) Abimbola Ademola, argued that Dangote Refinery sued a non-existent legal entity.
Ademola stated in court:
“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.”
Court Adjournment and Next Steps
After hearing arguments from all parties, Justice Inyang Ekwo adjourned the case to March 18, 2025. On this date, the court is expected to rule on two key issues:
NNPCL’s preliminary objection to dismiss the lawsuit.
FCCPC’s application to be joined as a defendant.
The upcoming court decision will be crucial in determining the legal landscape of Nigeria’s petroleum industry and the balance between refining independence and market competition.