FCCPC Moves To Join Dangote’s N100bn Suit Against NNPCL

FCCPC seeks to join Dangote Refinery’s N100bn lawsuit against NNPCL and marketers.
Dangote opposes FCCPC’s involvement, calling it an unnecessary interference in the case.
Court adjourns ruling on NNPCL’s preliminary objection to March 18.

The Federal Competition and Consumer Protection Commission (FCCPC) has urged the Federal High Court in Abuja to allow it to join the N100bn lawsuit filed by Dangote Petroleum Refinery against the Nigeria National Petroleum Company Limited (NNPCL) and oil marketers over the importation of refined petroleum products.

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EKO HOT BLOG reports that Dangote Refinery, however, opposed the FCCPC’s application, describing the commission as an unnecessary meddler in a case governed by the Petroleum Industry Act (PIA). The refinery argued that the matter does not concern FCCPC’s jurisdiction and accused the commission of interfering in an issue that solely involves the petroleum sector.

Representing the FCCPC, lawyer Olanrewaju Oshinaike insisted that the commission must be joined as a defendant to challenge Dangote’s suit. He contended that Dangote’s attempt to monopolize the petroleum industry contradicts the FCCPC’s mandate to uphold a free-market economy.

“The plaintiff’s case indicates an attempt to establish a monopoly in petroleum production and distribution, which goes against the provisions of the FCCPC Act,” Oshinaike stated.

The commission emphasized that Nigeria operates a free-market system where individuals and businesses can participate in all sectors. It also pointed out that the FCCPC Act mandates the elimination of anti-competitive practices, ensuring that no company dominates any industry unfairly.

Dangote Refinery is seeking the court’s intervention to nullify import licenses issued to NNPCL and five oil companies by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The refinery claims the licenses violate Sections 317(8) and (9) of the PIA, which restrict imports unless there is a product shortfall.

Meanwhile, AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited have opposed Dangote’s suit, arguing that its refinery does not yet meet national petroleum demands. They maintained that issuing import licenses is lawful and prevents monopoly in the sector.

NNPCL also filed a preliminary objection, asking the court to dismiss Dangote’s suit, arguing that the entity sued does not exist.