White_snow
Senior Editor
DANGOTE FIGHTS FOR CONTROL OF PETROL MARKET
THE BONE OF CONTENTION
Aliko Dangote, a prominent Nigerian business mogul, has filed a lawsuit against other petroleum marketers in a bid to gain control over the petrol market. This legal move has led to a court summons for these marketers, drawing attention to a potentially significant dispute within the industry.
Those involved in this lawsuit are the top 3 oil marketers in the nation, who are:
● AYM Shafa Limited
● A.A. Rano Limited
● Matrix Petroleum Services
They also fought back by appealing to the Federal High Court in Abuja to dismiss the suit filed by Dangote Petroleum Refinery and Petrochemicals. In a joint counter dated November 5, 2024, they argued that monopolizing the oil sector would be a huge disaster to the country's economy.
THE LAWSUIT
Earlier this year, on September 6, 2024, Dangote Refinery had drawn the battle line by suing the following bodies:
● Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)
● Nigeria National Petroleum Corporation (NNPC)
● A.A. Rano Limited
● T.Time Petroleum Limited
● 2015 Petroleum Limited
● Matrix Petroleum Services Limited
● AYM Shafa Limited
On suing, Dangote Refinery became the Plaintiff, with 7 defendants. The Plaintiff accused NMDPRA of the following:
● Violating the law by issuing licenses for the importation of petroleum products as opposed to issuance when there is a shortfall of petroleum products.
● Violating its responsibility of encouraging local refineries like Dangote Refinery.
THE FIGHT AGAINST MONOPOLY
In a counter response, other oil marketers:
● A.A. Rano Limited, AYM Shafa Limited, and Matrix Petroleum Services Limited accused Dangote Refinery of not producing adequate petroleum products for the daily consumption of Nigeria claiming Dangote had no evidence to refute the allegation.
Other arguments they held on to are:
● They are qualified for the import license issued by NMDPRA since they met all legal requirements for the issuance of the license even before it was issued.
● Their license was backed up by the provisions of the Petroleum Industry Act, 2021, and the Federal Competition and Consumer Protection Act, 2018 amidst other relevant laws.
● The issued license had no effect on the operations of Dangote’s refinery or other businesses he owned.
Kicking against monopoly in Nigeria’s Petroleum Industry which can be achieved by making the Dangote’s Refinery solely responsible for crude oil and petroleum products, they explained this will:
● Affect the economy critically
● Subject the citizens to hardship especially in the face of breakdown or obstruction in the refinery's production, leading to energy crises.
To support this claim of breakdown or obstruction in operations, the defendants had purported that the refinery has no reserve adequate to last it for 30 days. Hence, the need to resort to importation in order to complement local production with a plea to the court that granting the Plaintiff's request will be a drive to economic hardship, mass oppression and the country being at the mercy of Dangote’s refinery.
However, the case had been adjourned by the presiding judge, Justice Inyang Ekwo who fixed January 20, 2025 for a report of settlement or service.
YOUR VIEW
What do you think?
● Is the idea of monopoly an imminent danger to the Nigerian economy?
● Will importation really affect Dangote’s refinery?
Reference link:
businessday.ng
THE BONE OF CONTENTION
Aliko Dangote, a prominent Nigerian business mogul, has filed a lawsuit against other petroleum marketers in a bid to gain control over the petrol market. This legal move has led to a court summons for these marketers, drawing attention to a potentially significant dispute within the industry.
Those involved in this lawsuit are the top 3 oil marketers in the nation, who are:
● AYM Shafa Limited
● A.A. Rano Limited
● Matrix Petroleum Services
They also fought back by appealing to the Federal High Court in Abuja to dismiss the suit filed by Dangote Petroleum Refinery and Petrochemicals. In a joint counter dated November 5, 2024, they argued that monopolizing the oil sector would be a huge disaster to the country's economy.
THE LAWSUIT
Earlier this year, on September 6, 2024, Dangote Refinery had drawn the battle line by suing the following bodies:
● Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)
● Nigeria National Petroleum Corporation (NNPC)
● A.A. Rano Limited
● T.Time Petroleum Limited
● 2015 Petroleum Limited
● Matrix Petroleum Services Limited
● AYM Shafa Limited
On suing, Dangote Refinery became the Plaintiff, with 7 defendants. The Plaintiff accused NMDPRA of the following:
● Violating the law by issuing licenses for the importation of petroleum products as opposed to issuance when there is a shortfall of petroleum products.
● Violating its responsibility of encouraging local refineries like Dangote Refinery.
THE FIGHT AGAINST MONOPOLY
In a counter response, other oil marketers:
● A.A. Rano Limited, AYM Shafa Limited, and Matrix Petroleum Services Limited accused Dangote Refinery of not producing adequate petroleum products for the daily consumption of Nigeria claiming Dangote had no evidence to refute the allegation.
Other arguments they held on to are:
● They are qualified for the import license issued by NMDPRA since they met all legal requirements for the issuance of the license even before it was issued.
● Their license was backed up by the provisions of the Petroleum Industry Act, 2021, and the Federal Competition and Consumer Protection Act, 2018 amidst other relevant laws.
● The issued license had no effect on the operations of Dangote’s refinery or other businesses he owned.
Kicking against monopoly in Nigeria’s Petroleum Industry which can be achieved by making the Dangote’s Refinery solely responsible for crude oil and petroleum products, they explained this will:
● Affect the economy critically
● Subject the citizens to hardship especially in the face of breakdown or obstruction in the refinery's production, leading to energy crises.
To support this claim of breakdown or obstruction in operations, the defendants had purported that the refinery has no reserve adequate to last it for 30 days. Hence, the need to resort to importation in order to complement local production with a plea to the court that granting the Plaintiff's request will be a drive to economic hardship, mass oppression and the country being at the mercy of Dangote’s refinery.
However, the case had been adjourned by the presiding judge, Justice Inyang Ekwo who fixed January 20, 2025 for a report of settlement or service.
YOUR VIEW
What do you think?
● Is the idea of monopoly an imminent danger to the Nigerian economy?
● Will importation really affect Dangote’s refinery?
Reference link:
Marketers, Dangote fight in court over control of petrol market - Businessday NG
...oil marketers, AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited, are fighting Dangote Refinery...
businessday.ng
