Oil marketers ask court to dismiss Dangote refinery’s suit seeking withdrawal of their import licences

Three oil marketers have prayed a federal high court in Abuja to dismiss a suit filed by the Dangote Petroleum Refinery, seeking the withdrawal of the traders’ licences.

The marketers are AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited, according to NAN.

The Dangote refinery had asked a federal high court in Abuja to void import licences issued to the Nigeria National Petroleum Company (NNPC) Limited, Matrix Petroleum Services Limited, A. A. Rano Limited, and four other companies.

The company had prayed the court to declare that the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) was in violation of Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licences for petroleum products importation.

The refinery also said such licenses should only be issued in circumstances where there is a petroleum product shortfall.

The refiner urged the court to declare that NMDPRA is in violation of its statutory responsibilities under the PIA for not encouraging local refineries such as the company.

Later on October 21, the Dangote refinery said it plans to withdraw the lawsuit (which has been in court since June) in January 2025.

However, in a joint counter affidavit marked: FHC/ABJ/CS/1324/2024 filed in response to Dangote Refinery’s originating summons, dated November 5, the oil marketers told Inyang Ekwo, the judge, that granting the refinery’s application would spell doom for the country’s oil sector.

The marketers said the plan to monopolise the oil sector is a recipe for disaster in the country.

The defendants said the plaintiff did not produce adequate petroleum products for the daily consumption of Nigerians, adding that there was nothing placed before the court to prove the contrary.

‘WE’RE WELL QUALIFIED TO IMPORT PETROLEUM PRODUCTS’

The oil marketers also told the court that they are well qualified and entitled to be issued licences by the NMDPRA to import petroleum products in Nigeria within the meaning of Section 317(9) of the PIA.

They argued that vesting the refinery with the power of monopoly in Nigeria’s petroleum industry as it sought vide the instant suit, would kill competitive pricing of the commodity in the country.

The trio said such an act would further deteriorate the country’s critically ailing economy “and unleash untold hardship on Nigerians, all of which constitute a recipe for disaster in the polity.”

They warned that if Nigeria stops the importation of the products and allows the plaintiff to be the sole producer and supplier of the commodity, with the liberty to determine the ex-depot prices, the pump prices of petroleum products will continue to rise and energy security will elude Nigeria.

“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 defendants said.

“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.”

The oil marketers further told the court that granting the reliefs sought by the refinery would leave Nigeria and Nigerians at the mercy of the plaintiff with respect to the availability and cost of purchasing petroleum products in the country.

“The import licences lawfully and validly issued to the defendants did not in any way, cripple the plaintiff’s business or its refinery,” the defendants told the court.

“The import licences issued to the defendants by the 1st defendant are in line with the provisions of Petroleum Industry Act, 2021, the Federal Competition and Consumer Protection Act, 2018 and other relevant laws.”

In his judgment, Ekwo adjourned the case to January 20, 2025, for the report of settlement or service.