The lawsuit instituted by Dangote Petroleum Refinery seeking to stop Nigeria National Petroleum Company Limited from importing refined petroleum products, took a new turn as Federal Competition and Consumer Protection Commission has urged the Federal High Court in Abuja to allow it to join the N100 billion court case.
A report according to Punch newspaper, said Dangote Refinery opposed the FCCPC’s application to join the suit, describing the commission as a meddlesome interloper that has no business in a case revolving around the Petroleum Industry Act, an Act of the National Assembly.
The FCCPC said it needed to be allowed to join the suit as a defendant in order to oppose Dangote Refinery’s suit.
The commission argued that the aim of Dangote Refinery to monopolise the petroleum industry was contrary to FCCPC’s mandate to ensure a free market.
The commission’s lawyer, Olanrewaju Oshinaike, appeared before Justice Inyang Ekwo on Wednesday to push for its joinder in the suit.
In the motion he filed before the court, Oshinaike argued that the FCCPC needed to be joined in the suit because any judgment entered by the court would affect the commission’s mandate.
The lawyer noted that the main thrust of Dangote Refinery’s suit borders on “anti-competition and monopoly in the petroleum industry.”
The commission noted that Nigeria operates a free-market economy that allows individuals and entities to participate in various sectors without hindrance.
FCCPC also said its Act, which established the commission, obligates it to eliminate anti-competitive agreements and practices that may restrict other participants from engaging in the petroleum product distribution value chain.
Oshinaike stressed that one of the FCCPC’s functions is to eliminate anti-competitive agreements, and misleading, unfair, deceptive, or unconscionable marketing, trading, and business practices.
“There are grounds from the plaintiff’s case for believing that the plaintiff (Dangote Refinery) is attempting to create a monopoly situation in relation to the production and distribution of petroleum products in Nigeria through the machinery of the court.
“The extant spirit and provisions of the FCCPC Act do not permit monopoly behemoth activities in product manufacturing and distribution, including oil and gas,” the lawyer said.
The commission noted if allowed to join as a party, it would pray for the outright dismissal of the suit in its entirety.
But Dangote Refinery opposed the FCCPC’s application to join the suit.
The $20bn Lekki-based plant described the commission as a meddlesome interloper that has no business in a case revolving around PIA.
Meanwhile, at the Wednesday proceedings, Justice Ekwo fixed March 18 to rule on the preliminary objection filed by the NNPCL, seeking the dismissal of the N100bn lawsuit by the Dangote Refinery and Petrochemicals.
Dangote Refinery, in its suit marked FHC/ABJ/CS/1324/2024, is challenging the issuance of licence for the importation of refined petroleum products to the NNPC and oil marketers by the Nigeria Midstream and Downstream Petroleum Regulatory Authority.
Apart from the NNPCL and the NMDPRA, others listed as defendants in the suit are AYM Shafa Limited; A.A. Rano Limited; T. Time Petroleum Limited; 2015 Petroleum Limited; and Matrix Petroleum Services Limited.
Dangote Refinery, through its counsel, Ogwu Onoja (SAN), is praying the court to nullify import licences issued by NMDPRA to NNPCL and the five other companies for importing refined petroleum products.
The plaintiff also sought a declaration that NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act by issuing licences to import petroleum products, arguing that such licences should only be issued in cases of a petroleum product shortfall.
The company further sought N100bn in damages against NMDPRA for allegedly continuing to issue import licences to NNPCL and the other companies, among other reliefs.
In response to the suit, AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited filed counter-affidavits, urging the court to dismiss the suit.
They argued that Dangote Refinery was not entitled to the reliefs sought and that its current production did not meet the national daily petroleum product sufficiency required.
They argued that granting the request of the refinery would amount to monopolisation, stating that the NMDPRA was mandated to promote competition and prevent abuse of dominant market positions or monopolies in the oil sector.
They also argued that monopolising the sector would harm the economy, maintaining that the import licences issued to them were lawful and in compliance with the PIA, the Federal Competition and Consumer Protection Act, and other relevant laws.
Meanwhile, the NNPCL, in its preliminary objection, urged the court to strike out Dngote Refinery’s suit as the entity sued was non-existent.
At Wednesday’s hearing, NNPCL’s lawyer, Abimbola Ademola (SAN), while arguing the preliminary objection, submitted: “We are seeking an order of this court striking out this suit for lack of jurisdiction or in another alternative strike out the 2nd defendant suit.”
However, Dangote Refinery’s legal team opposed the preliminary objection, asking the court to dismiss it. The case was adjourned until March 18, 2025 for ruling after hearing the arguments by Justice Inyang Ekwo
Dangote Oil Refinery is a 650,000 barrels per day (BPD) integrated refinery project under construction in the Lekki Free Zone near Lagos, Nigeria. It is expected to be Africa’s biggest oil refinery and the world’s biggest single-train facility.
The Pipeline Infrastructure at the Dangote Petroleum Refinery is the largest anywhere in the world, with 1,100 kilometers to handle 3 Billion Standard Cubic Foot of gas per day. The Refinery alone has a 435MW Power Plant that is able to meet the total power requirement of Ibadan DisCo.
The Refinery was planned to meet 100% of the Nigerian requirement of all refined products and also have a surplus of each of these products for export. Dangote Petroleum Refinery is a multi-billion dollar project that will create a market for $21 Billion per annum of Nigerian Crude. It is designed to process Nigerian crude with the ability to also process other crudes.
