HomeNewsMarketers challenge Dangote Refinery’s bid to halt fuel imports

Marketers challenge Dangote Refinery’s bid to halt fuel imports

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Three Nigerian oil marketers – AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited – have urged the Federal High Court in Abuja to reject a suit by Dangote Petroleum Refinery and Petrochemicals that seeks to end fuel importation licenses.

In a joint counter affidavit filed on November 5, 2024, the marketers argued that approving Dangote’s request to monopolize the oil sector would harm Nigeria’s petroleum industry and create economic hardship.

READ ALSO: Ghana to import refined fuel from Dangote Refinery

The marketers argued that the refinery’s current production cannot fully meet Nigeria’s daily petroleum needs. They insisted that importation is vital for stable fuel supply and competitive pricing, particularly if any issues arise in Dangote’s production. “In the event of any breakdown… Nigeria will be thrown into energy crises,” they warned.

The marketers contended that Dangote Refinery’s attempt to be the exclusive petroleum supplier in Nigeria would escalate fuel prices and compromise energy security. “The import licenses lawfully and validly issued to the defendants did not in any way whatsoever cripple the plaintiff’s business or its refinery,” they stated, adding that allowing only Dangote Refinery to supply petroleum products would cause severe market disruption.

Dangote Refinery, in its initial court filing on September 6, claimed the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) violated the Petroleum Industry Act by issuing import licenses without demonstrating a supply shortfall. The refinery called for exclusive licensing for domestic refineries, asserting that current import permissions weaken incentives to increase local production.

The court, presided over by Justice Inyang Ekwo, scheduled January 20, 2025, for a report on the settlement or service in the case.

Meanwhile, in the international market, Bloomberg reported that three foreign firms — Vitol Group, Trafigura Group, and BP Plc — dominate fuel purchases from Dangote Refinery, accounting for 75% of exports since production began earlier this year. The refinery, which processes 650,000 barrels of crude per day, has primarily exported diesel and fuel oil, followed by gasoline and jet fuel.

The Dangote Refinery has also begun local sales, contributing to Nigeria’s fuel supply while reshaping African and European fuel markets.

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