Taiwo Popoola
Three major oil marketers have told the Federal High Court in Abuja that the planned monopoly of the energy sector by Dangote Petroleum Refinery will spell doom for the country’s oil sector.
According to the oil marketers, Dangote’s plan to monopolize the oil sector is a recipe for disaster in the country.
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 in a suit marked FHC/CS/ABJ/1324/2024, told the court that the plaintiff does not produce adequate petroleum products for the daily consumption of Nigerians and that there is nothing before the court to prove the contrary.
Dangote had in September 2024 sued the Nigeria Midstream And Downstream Petroleum Regulatory Authority (NMDPRA), Nigeria National Petroleum Corporaiton Limited (NNPCL), 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, 2024, Dangote prayed the court to declare that NMDPRA is in violation of sections 317(8) and (9) of the Petroleum Industry Act, PIA, by issuing licenses for the importation of petroleum products.
Dangote stated that such licenses should only be issued in circumstances where there is a petroleum product shortfall.
He also asked the court to declare that NMDPRA is in violation of its statutory responsibilities under the PIA for not encouraging local refineries such as Dangote Refinery.
But the marketers in their counter affidavit dated November 5, 2024, and deposed to by one Ali Ibrahim Abiodun, told the court that they are well qualified and entitled to be issued import licence by the 1st defendant to import petroleum products in Nigeria within the meaning of Section 317(9) of the Petroleum Industry Act.
They averred that vesting Dangote with the power of monopoly in Nigeria’s petroleum industry as it seeks vide the instant suit, will kill competitive pricing of petroleum products in the country, further deteriorate Nigeria’s critically ailing economy “and unleash untold hardship on Nigerians, all of which constitute a recipe for disaster in the polity”.
They told the court that if Nigeria puts all her energy eggs in one basket by stopping importation of petroleum products and allow Dangote to be the sole producer and supplier of petroleum products in the country, with liberty to determine the prices at which it supplies the products, the prices of petroleum products will continue to rise and energy security will elude Nigeria.
They said, “If Nigeria puts all her energy eggs in one basket by stopping importation of petroleum products and allowing the Plaintiff to be the sole producer and supplier of petroleum products in Nigeria, with liberty to determine the prices at which it supplies the products, the prices of petroleum products in Nigeria will continue to rise and energy security will elude Nigeria.
“AIn the event of any breakdown in or obstruction to the production chain of the plaintiff which stops it from producing, Nigeria will be thrown into energy crises as Nigeria does not have the reserves that would last it for the at least 30 days that it would need to order, pay for, freight and import refined products into tanks in Nigeria.
“Amidst the glaring absence of any credible and demonstrable proof that the Plaintiff refines and supplies adequate petroleum products for the daily use/consumption of Nigerians, giving the plaintiff (Dangote) judicial imprimatur to be the sole supplier of refined petroleum products to Nigerians, thereby encouraging monopoly in a major aspect of Nigeria’s oil industry, is a recipe for disaster in Nigeria’s energy sector.”
They further told the court that granting the reliefs sought by Dangote which solely aim at making him a monopolist in Nigeria’s petroleum sector, is a design to leave Nigeria and Nigerians at the mercy of the the company with respect to availability and cost of purchasing petroleum products in the country.
They also argued in their reply that they are fully qualified for the issuance of the import licences issued to them by the 1st defendant, as they duly met all the legal requirements for the issuance of such import licences, before same were issued to them.
“The import licences lawfully and validly issued to the defendants did not in any way whatsoever, cripple the plaintiff’s business or its refinery.
“The import licences issued to the defendants by the 1st defendant are in line with the provisions of Petroleum Industry Act, 2021, the Federal Competition and Consumer Protection Act, 2018 and other relevant laws,” the marketers stressed.
