Three major oil marketers—AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited—have called on the Federal High Court in Abuja to reject a suit filed by Dangote Petroleum Refinery and Petrochemicals, arguing that granting Dangote’s requests would have serious repercussions for Nigeria’s oil sector. In a joint counter-affidavit dated November 5, 2024, the marketers contended that Dangote’s plans would lead to a monopolization of the industry, which they described as a “recipe for disaster.”
The case stems from an originating summons filed by Dangote Refinery on September 6, 2024. The company is suing the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Corporation Limited, and several oil marketers, including AYM Shafa, A. A. Rano, and Matrix Petroleum, as defendants. Dangote claims that NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licenses for the importation of petroleum products when there is no proven shortfall, arguing that this undermines local refineries like theirs.
In response, the oil marketers maintain that Dangote Refinery does not produce sufficient quantities of petroleum products to meet the country’s daily needs, emphasizing that they are legally entitled to import licenses issued by NMDPRA. They argue that they meet all statutory requirements for these licenses, which are in line with the PIA and other relevant laws, and they refute claims that their imports harm Dangote’s business interests.
The marketers warned that a Dangote monopoly would eliminate competition in the market, negatively affecting pricing and potentially exacerbating the nation’s economic challenges. They highlighted the risks of relying solely on Dangote as the sole producer and supplier of petroleum products, cautioning that any disruption at the refinery could result in severe fuel shortages and an energy crisis.
Justice Inyang Ekwo has scheduled January 20, 2025, for a report on the case’s progress or possible settlement discussions.
Dangote’s Global Fuel Exports Surge
In a related development, international firms have played a key role in exporting products from Dangote’s 650,000-barrel-per-day refinery. A recent Bloomberg report revealed that companies such as Vitol Group, Trafigura Group, and BP Plc have dominated the export market, accounting for 75% of shipments from the facility since it began ramping up production earlier this year.
Data shows that from February 27 to October 10, Dangote’s refinery loaded nearly 6 million tons of fuel, with local markets accounting for 25% of total sales. The refinery’s main products include diesel and fuel oil, which together constitute more than 60% of its output, followed by gasoline and jet fuel.
Dangote Refinery, which began production this year, is expected to transform fuel trading across Africa and Europe with its capacity to process 650,000 barrels of crude daily. The plant has already achieved a processing rate of 420,000 barrels per day as of late October and continues to contribute to the Nigerian fuel market.
