Three oil companies, Matrix Petroleum Services Limited, A.A. Rano Limited, and AYM Shafa Limited, have approached the Federal High Court in Abuja with a legal request to prevent the Nigeria Midstream and Downstream Petroleum Regulatory Authority from reviewing or withdrawing their import licenses.
The companies argue that such actions would undermine energy security and disrupt healthy competition within the Nigerian oil and gas sector.
The court filing is in response to a lawsuit brought by Dangote Petroleum Refinery and Petrochemicals FZE, which is seeking to have the import licenses issued to the Nigerian National Petroleum Corporation Limited and five other companies annulled.
Dangote argues that these licenses allow the companies to import refined petroleum products that its refinery already produces domestically, thus leading to unnecessary imports in a market without shortages.
In their court processes, Matrix Petroleum, A.A. Rano, and AYM Shafa contend that blocking their ability to import fuel would negatively impact the sector, particularly in terms of ensuring a steady supply and fostering competitive pricing.
They stressed the importance of maintaining a diverse and competitive market, particularly as Nigeria’s refining capacity remains under development and capacity utilization issues persist.
In their written address and counter-affidavit, dated November 5, 2024, and filed by Ahmed Raji SAN, the three defendants—Matrix Petroleum Services Limited, A.A. Rano Limited, and AYM Shafa Limited—argue that their operations do not in any way hinder, disrupt, or harm Dangote Refinery’s business activities.
The defendants assert that the plaintiff’s lawsuit is part of an attempt to monopolize Nigeria’s petroleum industry, seeking exclusive control over the supply, distribution, and pricing of refined petroleum products.
The counter-affidavit emphasizes that their businesses contribute to healthy competition in the sector and that any move to withdraw their import licenses would undermine energy security and restrict market choice.
The defendants further argue that Dangote’s claim to exclusive rights in the refined petroleum market would stifle competition and ultimately harm consumers.
It was reported that Dangote Refinery in suit number FHC/ABJ/CS/1324/2024 is seeking N100 billion in damages from the NMDPRA.
The refinery alleges that the NMDPRA continues to issue import licenses to NNPCL, Matrix Petroleum Services, and other companies for importing petroleum products such as Automotive Gas Oil and Jet Fuel.
Dangote Refinery claims that this undermines its operations by permitting competitors to import products it already produces domestically, thereby distorting the market, “despite Dangote Refinery producing AGO and Jet-A1 in quantities exceeding the current daily consumption of petroleum products in Nigeria.”
The outcome of the case is closely watched by stakeholders in Nigeria’s oil and gas industry, where ongoing regulatory and market dynamics continue to shape the future of fuel imports and domestic refining.
