Dangote Refinery, FCCPC Clash as NNPCL Insists on Fuel Imports

 Legal Battle Over Petroleum Market Control Intensifies

A major legal battle is unfolding in Nigeria’s oil industry as Dangote Petroleum Refinery, the Federal Competition and Consumer Protection Commission (FCCPC), and the Nigerian National Petroleum Company Limited (NNPCL) clash over the importation of refined petroleum products.

Dangote Refinery has taken legal action to halt the issuance of import licenses for refined fuel, arguing that such approvals violate the Petroleum Industry Act (PIA) and threaten local production. However, the FCCPC has stepped in to oppose Dangote’s lawsuit, insisting that preventing fuel imports would create a monopoly and violate free-market principles.

FCCPC Moves to Join Lawsuit Against Dangote Refinery

The FCCPC has approached the Federal High Court in Abuja, requesting permission to join the N100 billion lawsuit filed by Dangote Refinery. The regulatory body argues that Dangote’s attempt to stop fuel imports contradicts its mandate to prevent monopolies and promote competition in Nigeria’s economy.

The commission’s lawyer, Olanrewaju Oshinaike, urged the court to allow the FCCPC to be listed as a defendant, arguing that any ruling in the case would directly impact its regulatory responsibilities.

“There are grounds for believing that Dangote Refinery is attempting to create a monopoly in the production and distribution of petroleum products through this lawsuit,” Oshinaike stated.

The FCCPC emphasized that Nigeria operates a free-market economy, allowing multiple players to compete in various sectors, including oil and gas. It insisted that Dangote’s lawsuit seeks to eliminate competition, which is against Nigerian law.

Dangote Refinery Rejects FCCPC’s Intervention

Dangote Refinery, however, has strongly opposed the FCCPC’s request, calling the agency a “meddlesome interloper”. The company maintains that its lawsuit strictly concerns the PIA and does not fall under the FCCPC’s jurisdiction.

The $20 billion Lekki-based refinery argues that allowing multiple companies to import refined petroleum products undermines Nigeria’s effort to achieve self-sufficiency in fuel production.

NNPCL and Oil Marketers Push Back Against Dangote’s Lawsuit

The NNPCL, along with several oil marketing companies, has filed a preliminary objection, urging the court to dismiss Dangote Refinery’s lawsuit. The state oil company insists that fuel importation remains necessary because Dangote Refinery’s current production capacity is insufficient to meet national demand.

Oil marketers, including AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited, have also submitted counter-affidavits, arguing that Dangote’s demands would create an unfair market advantage.

They maintain that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) was legally mandated to issue import licenses when necessary to prevent supply shortages and that blocking fuel imports would hurt the economy.

NNPCL’s Legal Argument: Dangote Refinery Lawsuit is “Non-Existent”

In its defense, NNPCL’s lawyer, Abimbola Ademola (SAN), argued that Dangote Refinery’s case should be struck out on technical grounds. According to the NNPCL, the lawsuit lacks jurisdiction and is targeting an entity that does not exist in legal terms.

“We are seeking an order of this court striking out this suit for lack of jurisdiction or, alternatively, dismissing the case against the second defendant,” Ademola stated.

Next Steps: Court to Rule on March 18

Justice Inyang Ekwo has scheduled March 18, 2025, as the date for ruling on the preliminary objections. The decision will determine whether:

1. The FCCPC can join the lawsuit to challenge Dangote’s claims.

2. NNPCL’s objection succeeds, leading to a dismissal of the case.

3. Dangote Refinery’s lawsuit proceeds, potentially reshaping Nigeria’s oil market.

Implications for Nigeria’s Petroleum Industry

This legal showdown will have far-reaching consequences for Nigeria’s fuel supply system. If Dangote Refinery wins, it could limit fuel importation and give local refineries greater control over the market. However, if NNPCL and oil marketers succeed, Nigeria may continue to depend on fuel imports, despite local refining efforts.

As the March 18 court ruling approaches, stakeholders in Nigeria’s energy sector, government agencies, and consumers will closely monitor the outcome of this high-stakes legal battle.