In a significant legal development, the Federal High Court in Abuja has dismissed the request by the Federal Competition and Consumer Protection Commission (FCCPC) to join the ongoing lawsuit filed by Dangote Petroleum Refinery against the Nigerian National Petroleum Company Limited (NNPCL) and several oil marketers.
The lawsuit seeks to halt the importation of refined petroleum products into Nigeria.
Justice Inyang Ekwo, delivering the ruling on Tuesday, held that the FCCPC was neither a relevant nor a necessary party in the suit.
He stated that the case could be effectively determined without the commission’s involvement, thereby rejecting its application.
Background of the Case
Dangote Petroleum Refinery initiated the lawsuit, marked FHC/ABJ/CS/1324/2024, against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), NNPCL, and five other oil marketing firms: AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.
The refinery is seeking a court order nullifying the import licenses granted by NMDPRA to these entities. It argues that such licenses were issued in violation of Sections 317(8) and (9) of the Petroleum Industry Act (PIA), which stipulates that importation should only be permitted in the event of a product shortfall.
Dangote Refinery further contends that it has sufficient capacity to meet Nigeria’s petroleum product demand and that continued importation undermines its business operations.
Additionally, the refinery is claiming N100 billion in damages against NMDPRA for allegedly persisting in issuing import licenses to NNPCL and the other oil marketing firms.
FCCPC’s Attempt to Join the Suit
The FCCPC, in its motion for joinder, argued that it needed to be included as a party in the lawsuit due to the case’s implications for market competition. The commission contended that Dangote Refinery’s legal action was aimed at monopolizing the petroleum industry, which conflicts with the FCCPC’s mandate to uphold free market competition.
“The main thrust of Dangote Refinery’s suit borders on anti-competition and monopoly in the petroleum industry,” the FCCPC asserted, emphasizing that any judgment delivered by the court would directly impact its regulatory functions.
However, Dangote Refinery opposed the FCCPC’s application, describing the commission as a “meddlesome interloper” with no jurisdiction over the matter. It argued that the case is primarily about the interpretation and enforcement of the Petroleum Industry Act, which falls outside the FCCPC’s regulatory scope.
NNPCL’s Objections Dismissed
Separately, NNPCL filed a preliminary objection, challenging the jurisdiction of the court and the competency of the lawsuit. It argued that Dangote Refinery sued a non-existent entity by referring to it as “NNPC” instead of its legally registered name, “Nigerian National Petroleum Company Limited.”
NNPCL contended that it was improperly named and urged the court to strike out its involvement in the case. It also challenged the locus standi of Dangote Refinery to file the lawsuit, describing it as “premature.”
However, Justice Ekwo dismissed NNPCL’s objections, ruling that they lacked merit. He granted Dangote Refinery’s request to amend the suit to reflect the correct legal name of the NNPCL.
Next Steps
Following the court’s decisions, Justice Ekwo adjourned the case to March 6 for further proceedings. The ruling marks a significant development in the ongoing legal battle, as it narrows the focus of the case to the core issue of whether NMDPRA lawfully issued the import licenses under the Petroleum Industry Act.
This case remains pivotal in shaping Nigeria’s petroleum sector, as its outcome could have far-reaching implications for fuel importation policies, market competition, and the operations of domestic refineries.
Implications of the Ruling
With the FCCPC excluded from the lawsuit, the case now centers on the legality of NMDPRA’s licensing decisions rather than market competition concerns. If the court sides with Dangote Refinery, it could restrict the importation of refined petroleum products, positioning Dangote as the primary supplier in Nigeria’s downstream sector.
Conversely, if the court upholds NMDPRA’s licensing authority, it may maintain the status quo, allowing NNPCL and independent marketers to continue importing refined fuel.
As the legal proceedings continue, stakeholders in the petroleum industry and regulatory agencies will be closely monitoring developments, given the case’s potential impact on fuel pricing, market stability, and domestic refining capacity.
