FCCPC seeks to join Dangote Refinery’s N100b lawsuit against NNPCL

The Federal Competition and Consumer Protection Commission (FCCPC) has asked the Federal High Court in Abuja to allow it to join the N100 billion lawsuit filed by Dangote Petroleum Refinery against the Nigerian National Petroleum Company Limited (NNPCL) and oil marketers. Dangote Refinery is seeking to stop fuel importation into the country.

However, Dangote Refinery has opposed the FCCPC’s request, describing the commission as an unnecessary meddler with no legal standing in a case concerning the Petroleum Industry Act (PIA).

FCCPC’s Argument
FCCPC, through its lawyer Olanrewaju Oshinaike, argued that Dangote Refinery’s attempt to monopolise the petroleum industry contradicts the commission’s mandate to ensure free market competition.

The commission maintained that Nigeria operates a free-market economy, allowing individuals and entities to participate in various sectors.

The FCCPC further stated that its legal mandate includes eliminating anti-competitive agreements and practices that could restrict other players in the petroleum distribution chain. It insisted that if allowed to join the suit, it would seek its outright dismissal.

“There are grounds from the plaintiff’s case for believing that the plaintiff (Dangote Refinery) is attempting to create a monopoly situation in relation to the production and distribution of petroleum products in Nigeria through the machinery of the court.

“The extant spirit and provisions of the FCCPC Act do not permit monopoly behemoth activities in product manufacturing and distribution, including oil and gas,” the lawyer said.

Dangote Refinery’s Position
Dangote Refinery, a $20 billion facility in Lekki, Lagos, strongly opposed FCCPC’s intervention.

The refinery argued that the case is strictly related to the PIA and has nothing to do with FCCPC’s jurisdiction.

NNPCL, Oil Marketers Defend Fuel Importation
NNPCL and oil marketers have also pushed back against Dangote Refinery’s lawsuit, arguing that the refinery does not yet produce enough fuel to meet Nigeria’s daily needs.

They contended that blocking fuel importation would create an unhealthy monopoly and harm the economy.

AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited, all listed as defendants, urged the court to dismiss the case, insisting that the import licenses issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) were lawful and in line with existing regulations.

Court Adjourns Ruling to March 18
Meanwhile, Justice Inyang Ekwo has scheduled a ruling for March 18 on NNPCL’s preliminary objection challenging the suit. NNPCL, through its lawyer Abimbola Ademola (SAN), argued that the case should be struck out due to jurisdictional issues.

Dangote Refinery, however, maintained its stance and urged the court to dismiss NNPCL’s objection.

The court will decide on the matter next month