Three oil marketers Matrix Petroleum Services Limited, A.A. Rano Limited, and AYM Shafa Limited have asked the Federal High Court in Abuja to stop the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) from revoking their import licences, challenging the suit filed by Dangote Petroleum Refinery and Petrochemicals FZE. Dangote Refinery alleges that import licences issued to these companies, along with Nigerian National Petroleum Corporation Limited (NNPCL), violate the Petroleum Industry Act (PIA) by allowing the importation of products already domestically produced by the refinery.
Dangote’s lawsuit seeks N100 billion in damages, arguing that allowing imports of refined products like Automotive Gas Oil (AGO) and Jet-A1 undermines local production. In response, Matrix, AA Rano, and AYM Shafa argue that Dangote’s refinery cannot fully meet the country’s fuel demands, citing extended fulfilment times, high prices, and restricted purchase terms imposed by Dangote. The companies emphasise that globally, energy security policies support diverse sourcing, even in nations with substantial refining capacities.
The defendants further claim that Dangote’s pricing and sales practices are restrictive, requiring Letters of Credit with full payment before finalising prices. They assert that this system burdens buyers, often resulting in financial losses due to delayed cost disclosures. Furthermore, AYM Shafa, which holds major storage and distribution capacities, maintains that relying solely on Dangote’s output is insufficient for Nigeria’s fuel needs.
As the January 2025 hearing approaches, ongoing settlement discussions reflect a potential resolution. However, Dangote’s request for market exclusivity continues to generate debate over fair competition in Nigeria’s oil sector and the role of government in supporting local production without stifling market access.