Oil marketers ask court to dismiss Dangote’s suit against issuance of oil licences

November 6, 2024
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Dangote Refinery's loading bay

 

*Says it’s a recipe for disaster in energy sector

Major oil marketers have asked the Abuja Division of the Federal High Court to dismiss the suit by Dangote Petroleum Refinery and Petrochemicals seeking to stop  issuance of licenses for the importation of petroleum products.

The three oil markers, AYM Shafa Limited,  A. A. Rano Limited and Matrix Petroleum Services Limited, who are listed as defendants in suit marked: FHC/CS/ABM/1324/2024, said granting the reliefs sought by the plaintiff would create a monopoly in the energy sector that will spell doom for the country’s oil sector.

According to defendants, the plan to monopolize the oil sector is a recipe for disaster in the country as the plaintiff does not produce adequate petroleum products for the daily consumption of Nigerians.

Other defendants listed in the suit that was filed on September 6, 2024 are the Nigeria Midstream And Downstream Petroleum Regulatory Authority (NMDPRA), Nigerian National Petroleum Corporation Limited (NNPCL) and  T. Time Petroleum Limited, 2015 Petroleum Limited.

Dangote Petroleum Refinery and Petrochemicals is praying the court to declare that NMDPRA is in violation of Sections 317(8) and (9) of the Petroleum Industry Act by issuing licenses for the importation of petroleum products.

The plaintiff stated that such licenses should only be issued in circumstances where there is a petroleum product shortfall.

It also urged the court to declare that NMDPRA is in violation of its statutory responsibilities under the Petroleum Industry Act (PIA) for not encouraging local refineries such as Dangote Refinery.

But the marketers in their response dated November 5, 2024, told the court that they are well qualified and entitled to be issued with import licences by the 1 Defendant to import petroleum products in Nigeria within the meaning of Section 317(9) of the Petroleum Industry Act, adding that vesting the Plaintiff with the power of monopoly in Nigeria’s petroleum industry as it seeks vide the instant suit, will kill competitive pricing of petroleum products in the country, further deteriorate Nigeria’s critically ailing economy “and unleash untold hardship on Nigerians, all of which constitute a recipe for disaster in the polity. ”

They also told the court that if the country puts all her energy eggs in one basket by stopping importation of petroleum products and allowing the Plaintiff to be the sole producer and supplier of petroleum products in Nigeria, with liberty to determine the prices at which it supplies the products, the prices of petroleum products in Nigeria will continue to rise and energy security will elude Nigeria.

According to them, “That if Nigeria puts all her energy eggs in one basket by stopping importation of petroleum products and allowing the Plaintiff to be the sole producer and supplier of petroleum products in Nigeria, with liberty to determine the prices at which it supplies the products, the prices of petroleum products in Nigeria 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 as Nigeria does not have the reserves that would last it for the at least 30 days that it would need to order, pay for, freight and import refined products into tanks in Nigeria.

“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, giving the Plaintiff judicial imprimatur to be the sole supplier of refined petroleum products to Nigerians, thereby encouraging monopoly in a major aspect of Nigeria’s oil industry, is a recipe for disaster in Nigeria’s energy sector.”

They further told the court that granting the reliefs sought by the Plaintiff which solely aim at making the Plaintiff a monopolist in Nigeria’s petroleum sector is a design to leave Nigeria and Nigerians at the mercy of the Plaintiff with respect to availability and cost of purchasing petroleum products in the Country.

They also argued in their reply that they are fully qualified for the issuance of the import licences issued to them by the 1st Defendant, as they duly met all the legal requirements for the issuance of such import licences, before the same were issued to them.

“The import licences lawfully and validly issued to the Defendants did not in any way whatsoever, cripple the Plaintiff’s business or its refinery.

“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,” they said.

 

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