Dangote’s Planned Monopoly Spell Doom For Energy Sector, Oil Marketers Tell Court
By Vivian Michael, Abuja
The Federal High Court, Abuja, has been told that the planned Monopoly of the energy sector by Dangote Petroleum Refinery and Petrochemicals will spell doom for the country’s oil sector.
Three marketers AYM Shafa Limited, A. A. Rano Limited and Matrix Petroleum Services Limited, argued that the plan to monopolize the oil sector is a recipe for disaster in the country.
In their replies to a suit filed by Dangote Petroleum in the FHC/CS/ABM/1324/2024, the Respondents told the court that the Plaintiff does not produce adequate petroleum products for the daily consumption of Nigerians, adding that there is nothing before the court to prove the contrary.
The plaintiff had in September 2024 sued the Nigeria Midstream And Downstream Petroleum Regulatory Authority (NMDPRA), Nigeria National Petroleum Corporaiton 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 is in violation of Sections 317(8) and (9) of the Petroleum Industry Act by issuing licenses for the importation of petroleum products.
He stated that such licenses should only be issued in circumstances where there is a petroleum product shortfall.
He also urged the court to declare that NMDPRA is in violation of its statutory responsibilities under the Petroleum Industry Act (PIA) for not encouraging local refineries such as Dangote Refinery.
But the marketers in their response dated November 5, 2024, told the court that they are well qualified and entitled to be issued import licence by the 1 Defendant to import petroleum products in Nigeria within the meaning of Section 317(9) of the Petroleum Industry Act, adding that vesting the Plaintiff 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 also told the court that if the country 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.
According to them, “That 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.
“That in 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.
“That 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 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 the Plaintiff which solely aim at making the Plaintiff a monopolist in Nigeria’s petroleum sector is a design to leave Nigeria and Nigerians at the mercy of the Plaintiff 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.
