FCCPC moves to join N100bn lawsuit against Dangote Refinery over fuel importation dispute

DDM News

The Federal Competition and Consumer Protection Commission (FCCPC) has asked the Federal High Court in Abuja to allow it to join the N100bn lawsuit filed by Dangote Petroleum Refinery against the Nigeria National Petroleum Company Limited (NNPCL) and oil marketers over the importation of refined petroleum products.

According to Diaspora digital media (DDM) reports, FCCPC argued that its involvement in the case was necessary to oppose Dangote Refinery’s attempt to monopolize the petroleum industry, which it claimed contradicts its mandate of ensuring a competitive market.

The commission’s legal representative, Olanrewaju Oshinaike, appeared before Justice Inyang Ekwo on Wednesday, emphasizing that the FCCPC should be included as a defendant in the case.

Oshinaike stated that any ruling on the matter would directly impact the FCCPC’s regulatory functions, particularly regarding competition and market fairness in the oil sector.

The commission maintained that Nigeria operates a free-market economy where businesses and individuals should be allowed to participate in various industries without unnecessary restrictions.

FCCPC also referenced its statutory duty to eliminate anti-competitive practices, stressing that Dangote Refinery’s lawsuit seeks to create a monopoly in the petroleum sector, contrary to the principles of fair competition.

“There are sufficient grounds to believe that Dangote Refinery is attempting to use the court to establish a monopoly over petroleum product distribution,” Oshinaike argued.

The commission further stated that its enabling law does not support monopolistic dominance in any industry, including oil and gas.

FCCPC, if allowed to join as a party, intends to push for the outright dismissal of the lawsuit, insisting that the refinery’s claims lack merit.

However, Dangote Refinery strongly opposed FCCPC’s application, describing the commission as an unnecessary meddler in a case strictly related to the Petroleum Industry Act (PIA), an Act of the National Assembly.

The $20bn Lekki-based refinery argued that FCCPC has no legal basis to intervene in a matter concerning the issuance of petroleum import licences.

Meanwhile, at the Wednesday proceedings, Justice Ekwo fixed March 18 to deliver a ruling on a preliminary objection filed by NNPCL, seeking the dismissal of the lawsuit.

Dangote Refinery, in suit number FHC/ABJ/CS/1324/2024, is challenging the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for issuing import licences to NNPCL and other oil marketers.

Apart from NNPCL and NMDPRA, the refinery also sued AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.

Dangote Refinery, through its counsel, Ogwu Onoja (SAN), urged the court to revoke the import licences issued to the defendants, arguing that such permits should only be granted in cases of a verified petroleum product shortfall, as outlined in the PIA.

The refinery is also seeking N100bn in damages against NMDPRA, accusing the agency of violating Sections 317(8) and (9) of the PIA by continuously granting import licences despite the country having local refining capacity.

In response, AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited filed counter-affidavits urging the court to dismiss the refinery’s suit.

The oil marketers argued that Dangote Refinery’s production is insufficient to meet national demand and that granting its request would create an unhealthy monopoly in the industry.

They maintained that NMDPRA acted lawfully by issuing import licences in compliance with the PIA, FCCPC Act, and other relevant laws, adding that monopolization would harm the economy.

NNPCL, in its preliminary objection, asked the court to strike out the suit, arguing that Dangote Refinery had sued a non-existent entity.

At the hearing, NNPCL’s lawyer, Abimbola Ademola (SAN), told the court: “We seek an order striking out this suit for lack of jurisdiction or, in the alternative, removing the second defendant from the case.”

Dangote Refinery’s legal team, however, opposed the objection, insisting that the case should proceed.

As the legal battle unfolds, FCCPC’s push to join the suit remains a critical factor in determining the outcome, with implications for competition and market regulation in the petroleum sector.

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