3 Oil Marketers Urge Abuja Court To Dismiss Dangote Refinery’s Case Against Import Licenses

Oil marketers AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited have urged a federal high court in Abuja to reject a case filed by Dangote Petroleum Refinery, which was seeking to have their licenses removed.

This came after the Dangote refinery on Sept. 6 had asked a federal high court in Abuja to cancel the import licenses given to the Nigerian National Petroleum Company Limited, Matrix Petroleum Services Limited, A.A. Rano Limited and four other companies.

The refinery argued that the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing these import licenses.

The refinery also stated that only in the case of petroleum products shortage, such licenses should only be granted. It urged the court to rule that NMDPRA failed in its duties under the PIA by not supporting local refineries like Dangote.

Dangote refinery on Oct. 21 announced plans to withdraw the lawsuit, which has been in court since June, in January 2025.

In a response filed on Nov. 5, the oil marketers -- in a joint counter-affidavit -- told Judge Inyang Ekwo that approving Dangote Refinery's request would harm the country's oil sector. The marketers argued that the refinery's plan to dominate the oil sector would be disastrous for the country.

They also noted that the refinery has not produced enough petroleum products to meet Nigeria's daily needs and no evidence was presented to prove otherwise.

The three marketers warned that allowing Dangote Refinery to control the oil sector would make the country's already struggling economy worse and cause great hardship for Nigerians, leading to disaster.

They cautioned that if Nigeria stopped importing petroleum products and let the refinery be the only producer and supplier, with the power to set prices, the cost of fuel will keep rising and the country's energy security will be at risk.

"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 because it does not have the reserves that would last it for at least 30 days that it would need to order, pay for, freight and import refined products into tanks in Nigeria," the affidavit mentioned, Punch reported.

"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, is a recipe for disaster in Nigeria's energy sector."