The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has firmly rejected claims of fostering monopolistic practices within Nigeria’s oil and gas sector.
According to The Nation, in a legal battle, the agency defended its decision to issue import licenses to several oil companies, countering a lawsuit filed by Dangote Petroleum Refinery and Petrochemicals FZE (Dangote Refinery) that seeks to annul these licenses.
Dangote Refinery argues that the licenses granted to companies like the Nigerian National Petroleum Company (NNPC) Limited and others to import refined petroleum products undermine its operations and violate the Petroleum Industry Act (PIA).
The refinery is particularly concerned that the importation licenses are issued despite the fact that its own production capacity has not yet met the national demand for petroleum products.
However, NMDPRA counters that the licenses were issued to address product shortfalls and ensure the continuous supply of petroleum, in compliance with the PIA’s stipulations.
It emphasized that it is mandated by law to promote competition and prevent monopolistic dominance in the sector.
The agency argued that Dangote Refinery’s claims of a conspiracy against its business lack evidence and merit.
In response, other oil marketing companies, including AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited, supported NMDPRA, arguing that Dangote Refinery’s pursuit of a monopoly could be detrimental to Nigeria’s oil sector.
They contend that restricting the import licenses would be a disaster for the country, particularly given Dangote Refinery’s failure to meet local fuel requirements.
Justice Inyang Ekwo adjourned the case to January 30, 2025, after hearing the preliminary objections, as Dangote Refinery’s legal team failed to properly serve the defendants.
The outcome of the case could have significant implications for Nigeria’s oil industry.
SOURCE: Alfari
