The lawsuit filed by Dangote Petroleum Refinery and Petrochemicals at the Federal High Court in Abuja, seeking the annulment of import licenses granted to the Nigerian National Petroleum Company Limited (NNPCL) and six other legitimate petroleum companies is nothing short of an outrageous and despicable power grab. It is a shameless attempt to strangle the Nigerian oil market and force an entire nation into submission under the whims of one corporate empire. Although the Dangote group, in a laconic press statement promised to withdraw the lawsuit, claiming it “is an old issue that started in June and culminated in a matter being filed on September 6, 2024,” the sheer audacity of the suit is infuriating and must be condemned in the strongest possible terms. This is not just business; this is corporate greed on a catastrophic scale. Dangote’s brazen move reeks of arrogance, as it tries to eliminate competition and dictate the fate of an entire country’s fuel supply, leaving Nigerians at the mercy of its greed. Nigerians deserve choices, fair pricing, and a healthy market, not a monopolistic stranglehold by a single corporate giant. This dangerous power grab by Dangote is an insult to the Nigeria people and must be systematically rejected.
The lawsuit centers on the importation of refined petroleum products that Dangote Refinery claimed were already being produced domestically without shortages. In the suit, Dangote Refinery is also demanding ₦100bn in damages from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Dangote alleged that the NMDPRA has unlawfully continued to issue import licenses to the NNPCL, Matrix Energy, and others for products like diesel and jet fuel, despite Dangote’s production capacity exceeding Nigeria’s current daily consumption of these products. The defendants in the case include NMDPRA, NNPCL, A.Y.M Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited. In its originating summons, Dangote argued that the NMDPRA has violated sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing import licenses under circumstances where no product shortfall exists. Dangote contended that such licenses should only be granted when there is a demonstrated need for imported products.
The affidavit from Dangote Refinery stated that the import licenses issued to other companies are detrimental to Dangote’s business, which has invested billions of dollars into production. The company claimed these actions have resulted in a lack of patronage for Dangote’s products. The group also alleged that NMDPRA has threatened to impose a 0.5% levy on Dangote’s wholesale transactions, which contravened statutory provisions that restrict such levies on transactions within free zones, arguing that the establishment of free zones aims to encourage competition and attract foreign investment. Dangote’s legal team asserted that the situation necessitated judicial intervention to prevent ongoing violations of statutory provisions favoring certain entities over others. Dangote also sought an injunction to prevent the NMDPRA from issuing or renewing import licenses for the defendants.
This lawsuit is a direct assault on the very essence of free-market principles that thrive on competition, innovation, and consumer choice. Dangote seeks to crush competition, jack up prices, and bleed the Nigerian people dry for profit. However, Dangote Group in a statement issued October 21, 2024, denied seeking to hold the nation’s energy needs hostage for their selfish gain. Anthony Chiejina, Group Chief Branding and Communications officer said: “No party has been served with any court processes and there is no intention of doing so. We have agreed to put a halt to the proceedings…once the matter comes up January 2025, we would be in a position to formally withdraw the matter in court.” It is important to stress that if the courts allow this insanity to proceed, they will be complicit in selling the soul of Nigeria to corporate greed. Whatever happens, this legal action is a blatant attempt to stifle competition and secure a monopoly over Nigeria’s petroleum sector. The lawsuit reveals an insidious strategy to control the entire market and choke out other players in an industry critical to the Nigerian economy. Such unethical behavior will potentially lead to inflated prices and reduced consumer options.
The Nigerian people deserve better than a single corporate giant controlling their access to petroleum products, which are vital for everyday life and the national economy. Nigeria, Africa’s largest oil producer, has long grappled with the paradox of being rich in crude oil but perpetually reliant on fuel imports. The promise of a domestic solution has dangled like a carrot for decades, and when the Dangote Refinery was unveiled, it seemed like the answer to Nigeria’s energy woes. Set to be the largest single-train refinery in the world, it was expected to transform Nigeria from a net importer of refined petroleum products to a potential exporter. While many have hailed the refinery as a game-changer, it is crucial to examine the broader implications of this unprecedented consolidation of power. Aliko Dangote, Africa’s richest man, is now wielding an unassailable level of control over the lifeblood of the Nigerian economy—oil and gas. Such a monopolistic stranglehold on a critical sector of the Nigerian economy, unchecked by regulatory frameworks or healthy competition, threatens to not only stifle market forces but also deepen Nigeria’s existing economic challenges. The dangers of monopolies are well-documented: inflated prices, decreased innovation, and the erosion of consumer choice. Nigeria must not fall victim to this.
There is an inherent danger of allowing one individual or entity to dominate an entire sector as critical as oil. Monopolies stifle competition, choke innovation, and put consumers at the mercy of a single operator. Nigeria has, for decades, suffered from corruption, inefficiency, and mismanagement in the oil sector, and the entrance of the Dangote Refinery was been touted as a solution to these problems. But in reality, it risks replacing one set of problems with another, possibly worse, set. With Dangote Refinery projected to refine 650,000 barrels of crude oil per day, it will easily outpace the combined capacity of Nigeria’s four state-owned refineries, which have suffered from years of neglect and underinvestment. Given the refinery’s sheer size and the depth of its production capabilities, Dangote could soon hold a near-monopoly over the production and distribution of petroleum products in Nigeria. This would allow him to dictate pricing and control supply, and marginalizing other potential players in the sector. This is reminiscent of the global tech giants, whose monopolistic dominance has curtailed competition and led to market distortion. For a country as vulnerable to price shocks and economic inequality as Nigeria, such concentrated power is a recipe for disaster.
