The marketers’ request, documented in a counter-affidavit dated November 5, 2024, was in response to a summons filed by Dangote Refinery in September. The refinery is challenging the issuance of import licenses by the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to companies outside of situations of domestic supply shortages.
Dangote argued that the NMDPRA is breaching the Petroleum Industry Act (PIA) by allowing imports while a local refinery could supply products. In response, the marketers contend that they meet all the legal requirements to be granted import licenses under the PIA, which encourages competitive practices to prevent monopolies.
The marketers further argued that relying solely on Dangote as the exclusive supplier would lead to rising prices and pose significant energy security risks. If disruptions occur in Dangote’s production, Nigeria would lack the reserves necessary to meet demand, potentially triggering an energy crisis.
They cautioned that permitting Dangote’s request for exclusive control could lead to unchecked price increases, further weakening the economy and intensifying hardships for Nigerians. The marketers asserted that their licenses were validly issued under both the Petroleum Industry Act and the Federal Competition and Consumer Protection Act, which prevent monopolistic practices in critical industries.
The court’s decision on this case will have wide-reaching implications for Nigeria’s oil sector, determining whether the market will remain competitive or face a potential monopoly in the hands of a single supplier.
