The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said it will not allow an “unhealthy monopoly” in the oil and gas sector.
It faulted 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 a counter-affidavit is 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.
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.
Arguing 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.
