NMDPRA vows to block ‘unhealthy monopoly’ in oil sector

The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, says unhealthy monopoly would no longer be tolerated in the country’s oil and gas sector.

The agency claimed that an alleged plan by private sector players to monopolise the oil sector is a recipe for disaster in the country.

The declaration is coming at the heels of the current imbroglio between NMDPRA and Dangote Refinery and Petrochemicals FZE, after the latter filed a suit seeking to void the import licenses issued by NMDPRA to some oil marketing companies.

In a 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.

Calling on the court to strike out the suit, NMDPRA argued that Dangote Refinery is not entitled to any of the reliefs sought, adding that Dangote Refinery’s current production is yet to meet the national daily petroleum products sufficiency requirement.

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.

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.

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.”
NMDPRA said its responsibilities also include preventing unhealthy monopolies in the oil and gas sector.