Dangote Petroleum Refinery and the Federal Competition and Consumer Protection Commission (FCCPC) are locked in a legal dispute over a N100 billion lawsuit challenging the issuance of petroleum import licences in Nigeria.
Dangote Refinery’s Legal Action
Dangote Refinery sued the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for allowing some companies to import petroleum products such as diesel (AGO) and aviation fuel, despite local production. The case, filed at the Federal High Court, Abuja, in September 2024 (suit number FHC/ABJ/CS/1324/2024), argues that import licences should only be granted when local supply is insufficient.
The companies affected by this lawsuit include:
- Nigerian National Petroleum Company Limited (NNPCL)
- Matrix Petroleum Services Limited
- A.A. Rano Limited
- AYM Shafa Limited
- And four others
Dangote’s legal team, led by senior lawyers Dr. Ogwu James Onoja (SAN) and George Ibrahim (SAN), insists that NMDPRA violated the Petroleum Industry Act (PIA) by allowing imports when local supply was adequate.
Defendants Fight Back
Three oil companies Matrix, A.A. Rano, and AYM Shafa asked the court to dismiss the case, arguing that only NMDPRA and NNPCL can determine supply shortages. NNPCL’s lawyer, Ademola Abimbola (SAN), also objected, saying Dangote sued the wrong entity. He pointed out that the lawsuit was filed against “Nigeria National Petroleum Corporation,” which no longer exists, instead of “Nigerian National Petroleum Company Limited.”
Additionally, Abimbola stated that NMDPRA is not legally required to limit import licences unless it implements the Backward Integration Policy, which would prioritise local production over imports.
FCCPC Joins the Case
On January 5, 2025, the FCCPC filed a request to be added as a defendant in the case. The commission argues that stopping the issuance of import licences could create a monopoly in favour of Dangote Refinery.
FCCPC’s legal team, led by Barrister Olarenwaju Osinaike, stated that its role is to prevent unfair business practices and anti-competitive behaviour. The commission believes Dangote is using the courts to dominate the petroleum sector.
According to the FCCPC, Nigeria operates a free-market economy where businesses should compete fairly. The commission claims that if it is allowed to join the case, it will push for its dismissal.
Dangote Refinery Responds
Dangote Refinery dismissed FCCPC’s claim, arguing that its lawsuit is not about creating a monopoly but about supporting local refining. The company maintains that it has the capacity to meet Nigeria’s fuel demand and that import licences should only be issued when there is a shortage.
Dangote’s lawyer, George Ibrahim, criticised the FCCPC for getting involved, calling it a “meddlesome interloper.” He insisted that FCCPC has no authority over petroleum regulations, which are governed by the PIA.
What Happens Next?
The court, presided over by Justice Inyang Ekwo, is expected to make a ruling on FCCPC’s request to join the case soon. The next hearing is scheduled for February 5, 2025.
Key Background
This legal battle comes amid wider tensions between Dangote Refinery and the federal government. Last year, Aliko Dangote expressed frustration with regulators and even considered selling part of his refinery to NNPCL. The government later allowed marketers to buy fuel directly from Dangote Refinery, bypassing NNPCL’s role as an intermediary.
As the case unfolds, industry stakeholders are closely watching its impact on Nigeria’s petroleum market.
