Three oil marketers, AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited, have warned that Nigeria risks an energy crisis if immediate action isn’t taken, urging the court to dismiss the lawsuit filed by Dangote Refinery, News About Nigeria reports.
Recall that on September 6, 2024, Dangote Refinery filed an originating summons, accusing the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Corporation Limited (NNPC), and several oil marketers of violating Sections 317(8) and (9) of the Petroleum Industry Act (PIA).
The refinery contended that NMDPRA improperly issued petroleum import licenses without proving a product shortfall and requested the court to declare that NMDPRA’s actions undermine its mandate to support local refineries like Dangote’s.
In response, Shafa, A. A. Rano, and Matrix Petroleum called on the Federal High Court in Abuja to dismiss the lawsuit, stating that Dangote Refinery does not produce enough petroleum products to meet Nigeria’s daily consumption.
In a joint counter affidavit, dated November 5, 2024, the marketers argued that supporting Dangote’s attempt to restrict petroleum import licenses could destabilize Nigeria’s oil sector. They further asserted that Dangote had not provided evidence to support claims of adequate supply.
They argued that monopolizing the sector would harm the Nigerian economy and reduce competitive pricing of petroleum products. The marketers also emphasized that they had met all legal requirements for import licenses issued by NMDPRA, in accordance with Section 317(9) of the PIA, and are therefore entitled to continue their importation activities.
“The import licenses lawfully issued to the defendants did not, in any way, impede the plaintiff’s business or its refinery,” the marketers stated.
They further explained that the licenses were issued in accordance with the Petroleum Industry Act, 2021, the Federal Competition and Consumer Protection Act, 2018, and other relevant laws.
They cautioned that in the event of any disruption in Dangote’s production chain, Nigeria would be at risk of an energy crisis due to insufficient reserves to cover a minimum of 30 days needed to arrange and import refined products.
The marketers concluded that “the absence of any credible evidence that the plaintiff can consistently supply adequate petroleum products for Nigerians’ daily needs presents a recipe for disaster in Nigeria’s energy sector.”
