The Federal High Court Abuja has dismissed the Federal Competition and Consumer Protection Commission’s (FCCPC) request to join and challenge Dangote Petroleum Refinery and Petrochemicals FZE’s N100 billion import license lawsuit.
Justice Inyang Ekwo dismissed FCCPC’s joinder request on Tuesday while ruling on its application to join and prove Dangote’s alleged planned monopoly in the oil and gas sector.
The pending suit by Dangote Refinery, marked FHC/ABJ/CS/1324/2024, seeks to void import licenses issued to some Nigerian oil companies by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
These companies include the Nigerian National Petroleum Company Limited (NNPCL), Matrix Petroleum Services Limited, A.A. Rano Limited, and four others.
What FCCPC and Dangote Refinery said about the N100 pending suit
In its motion and accompanying processes exclusively seen by Nairametrics, the FCCPC legal team, led by Barrister Olarenwaju Osinaike, had stated that FCCPC is seeking to be joined as a necessary party to the present proceedings because its interest would allegedly be affected by the outcome of the suit.
- The Commission stated that the case involves whether preventing the oil companies in dispute from operating the said licenses would lead to anti-competition or monopoly in favor of Dangote Refinery, among others.
- He submitted that one of the main issues raised in the refinery’s originating summons allegedly “relates to anti-competition and monopoly in the petroleum industry sector.”
- He drew the court’s attention to the functions of the FCCPC, which, according to him, include eliminating anti-competitive agreements, and misleading, unfair, deceptive, or unconscionable marketing, trading, and business practices.
- The FCCPC contended that Nigeria operates a free-market economy, allowing individuals and entities to participate in various sectors without hindrance.
But in its counter to FCCPC’s request to join the suit, seen by Nairametrics, Dangote Refinery responded that:
“It is not true that the plaintiff’s suit is monopolistic but solely aimed at revamping local refining of petroleum products in Nigeria.”
- Ibrahim submitted that his client was granted a license by NMDPRA under the Petroleum Industry Act to import, produce, and refine petroleum products.
- He maintained that NMDPRA should only grant import licenses in line with Section 317(8) and (9) of the Petroleum Act, which permits the import of refined products only when there is a shortage in local production.
“Dangote Refinery is able to meet the daily consumption demand of the country,” he stated, adding that NMDPRA allegedly granted licenses to the defendants to import petroleum products contrary to Section 317(8) and (9) of the Petroleum Industry Act.
“The Petroleum Industry Act does not give the Federal Competition and Consumer Protection Commission (FCCPC) authority to issue licenses or impose levies on the plaintiff,” he continued, describing the FCCPC as a “meddlesome interloper” that should not be allowed to join the suit.
He further submitted that FCCPC has no business in a case revolving around the PIA—an Act of the National Assembly.
He stated that FCCPC should instead seek an amendment to the law if it has any grievance regarding the petroleum sector.
Court’s Ruling
Ruling on the joinder application by FCCPC, Ekwo said while the law allows a necessary party to join a case, that party must prove its relevance in the matter.
- Ekwo held that having reviewed the submissions of FCCPC and Dangote Refinery, he could not find how the Commission is relevant to the case bordering on PIA.
“Looking at the application filed by the FCCPC, I do not find any ground or substance that makes FCCPC relevant in this case.
“I am of the opinion that that subject matter of the case can be resolved without the FCCPC,” Ekwo ruled.
- The judge found that the application by FCCPC is “unmeritorious”.
- He subsequently made an order dismissing the FCCPC application.
The judge then adjourned till May 6, 2025, for Dangote Refinery to mention its amended case again.
What You Should Know
- The trial court had earlier dismissed a preliminary objection by the NNPCL against Dangote Refinery, adding that the application was incompetent.
- Africa’s richest man, Aliko Dangote had announced his willingness to sell his multibillion-dollar refinery to NNPCL, amid escalating disputes with regulators and equity partners, last year.
- Dangote had previously accused other importers of bringing substandard petroleum products into Nigeria.
- Nairametrics reported that the federal government later allowed marketers to purchase petroleum products directly from Dangote Refinery, following NNPCL’s decision to withdraw as an intermediary between the refinery and marketers.
