The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said it will not allow an “unhealthy monopoly” in the oil and gas sector.
The agency disclosed this while faulting the suit by Dangote Petroleum Refinery and Petrochemicals FZE (Dangote) seeking to void the import licenses issued by NMDPRA to some oil marketing companies.
NMDPRA, in the counter-affidavit it filed against the suit marked: FHC/ABJ/CS/1324/2024, justified its issuance of import licenses to the Nigerian National Petroleum Company (NNPC) Limited, AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited and Matrix Petroleum Services Limited.
While praying the court to dismiss the suit for being unmeritorious and incompetent, NMDPRA argued that Dangote Refinery is not entitled to any of the reliefs sought.
It stated that Dangote Refinery’s current production is yet to meet the national daily petroleum products sufficiency requirement.
NMDPRA added that based on the insufficiency of Dangote Refinery’s production and, in compliance with Section 317 [9] of the PIA (Petroleum Industry Act), it issued licences to companies with good track records of international products trading to import petrol to bridge product shortfalls.
It argued that it is also mandated to promote competition and prevent abuse of dominant market positions, NMDPRA said its responsibilities also include preventing unhealthy monopolies in the oil and gas sector.
The agency denied Dangote’s claim that it is partaking in any purported “grand conspiracy and concerted efforts” against the refinery, arguing that it is “an allegation for which the plaintiff has provided no facts or evidence in support.”
In their joint counter-affidavit, AYM Shafa Limited, A. A. Rano Limited and Matrix Petroleum Services Limited argued that granting the reliefs sought in Dangote’s case would spell doom for the country’s oil sector.
They claimed that an alleged plan by Dangote Refinery to monopolise the oil sector is a recipe for disaster in the country.
The three firms also claimed that the plaintiff did not produce adequate petroleum products for the daily consumption of Nigerians, adding that it (Dangote Refinery) has placed nothing before the court to prove the contrary.
In its preliminary objection, the NNPCL wants the court to strike out the case for being incompetent.
The plaintiff’s counsel George Ibrahim said although the business of the day was for either a report of settlement or a report of service, his client has been unable to serve the amended originating summons on the defendants.
Justice Inyang Ekwo noted that the case is not mature for hearing, which will necessitate an adjournment.
Justice Ekwo adjourned till January 30.
Dangote Refinery is praying the court to nullify the import licences issued by NMDPRA to the NNPCL and the other companies to import refined petroleum products.
It also wants the court to declare that NMDPRA violated sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licenses for the importation of petroleum products.
The plaintiff prayed the court to award N100 billion in damages against NMDPRA for its alleged continued issuance of import licences to NNPCL and the five companies to import petroleum products.
Dangote Refinery is contending that such licenses should only be issued in circumstances where there is a petroleum product shortfall.
