Three major oil marketers—AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited—are pushing back against Dangote Petroleum Refinery and Petrochemicals’ legal pursuit of a monopoly on petroleum imports in Nigeria. The marketers have filed a counter-affidavit at the Federal High Court in Abuja, calling for the dismissal of Dangote’s lawsuit and warning of severe consequences if his monopoly bid is granted.

In a joint statement, the marketers contended that allowing Dangote’s request for exclusive control over the fuel market would destabilize the nation’s oil sector, lead to higher fuel prices, and potentially harm the economy. Filed on November 5, 2024, this response counters Dangote Refinery’s originating summons, in which Dangote argued that Nigeria’s Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) should only issue fuel import licenses if there is a shortage, and that the regulatory authority had failed to uphold its duty to promote local refineries.

Dangote Refinery, Africa’s largest refining complex, claims that NMDPRA’s continued issuance of import licenses contradicts the Petroleum Industry Act (PIA), which aims to strengthen local refineries. However, the marketers argue that Dangote’s production levels fall short of meeting Nigeria’s daily demand for fuel. They assert that their import licenses comply fully with legal requirements and are essential to maintain competition and fuel availability in the market. The marketers argue that relying solely on Dangote’s refinery would increase costs, reduce competition, and exacerbate economic hardships for Nigerian consumers.

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In their court filing, the marketers highlighted the risks of an unchallenged monopoly. “If Dangote Refinery gains exclusive control, any operational issue could trigger a nationwide fuel shortage,” they warned. “Without adequate reserves, a breakdown would create an immediate energy crisis.” This monopolization, they argue, is incompatible with Nigeria’s economic stability and consumer welfare, both of which benefit from diverse import sources.

Justice Inyang Ekwo has scheduled a court hearing for January 20, 2025, for further discussions on the case, signaling that this high-stakes battle could shape Nigeria’s fuel import policy.

Global Reach of Dangote’s Refinery

Meanwhile, Dangote Refinery has rapidly gained international buyers, with Vitol Group, Trafigura Group, and BP Plc reportedly acquiring approximately 75% of the refinery’s exports. This new facility, which began operations in early 2024, has already exported nearly 6 million tons of fuel, positioning itself as a powerhouse in Africa’s energy sector.

Located in Lagos, the refinery boasts a processing capacity of 650,000 barrels per day, the largest of its kind in both Africa and Europe. As exports increase, the refinery has significantly impacted the regional fuel trade, with shipments averaging around 35,000 tonnes per day in October.

These developments underscore the growing influence of Dangote Refinery in the global petroleum market, with exports comprising diesel, aviation fuel, LPG, and now Premium Motor Spirit (petrol). Industry analysts will be closely monitoring its output as Dangote’s operations continue to reshape the energy landscape in Africa and beyond.