The Nigeria National Petroleum Corporation Limited (NNPCL) has opposed Dangote Petroleum Refinery and Petrochemicals FZE’s lawsuit seeking exclusive rights to supply petroleum products in Nigeria.
In its preliminary objection, NNPCL described Dangote Refinery’s suit as incompetent.
NNPCL argued that Dangote Refinery’s suit is premature and lacks cause of action. The corporation also challenged the court’s jurisdiction to entertain the suit. Furthermore, NNPCL claimed that Dangote Refinery sued a non-existent party, as the court processes listed NNPC, which is no longer in existence.
Dangote Refinery alleged that the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) breached Sections 317(8) and (9) of the Petroleum Industry Act by issuing licenses to NNPCL and other oil marketers. The refinery claimed it produces enough petroleum products to meet Nigeria’s daily consumption and sought N100 billion in damages.
Three oil marketers – AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited – asked the court to dismiss Dangote Refinery’s suit. They argued that granting Dangote’s application would harm Nigeria’s oil sector and that the refinery does not produce enough petroleum products to meet daily consumption.
Justice Inyang Ekwo adjourned the matter to January 20, 2025, for hearing and to allow for an out-of-court settlement. Dangote Refinery expressed readiness to withdraw the suit.
The dispute highlights concerns about monopolization and the impact on Nigeria’s oil sector. As the case unfolds, stakeholders will be watching closely to see how the court’s decision affects the industry.
