Dangote Petroleum Refinery’s alleged move to monopolize Nigeria’s energy sector has sparked intense controversy, with three major oil marketers warning that it will have disastrous consequences for the country’s oil industry.
AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited made this assertion in their reply to a suit filed by Dangote Petroleum at the Federal High Court in Abuja.
The marketers argued that granting Dangote’s request would lead to a lack of competitive pricing, exacerbate Nigeria’s economic woes, and inflict hardship on Nigerians.
They emphasized that Dangote Refinery does not produce enough petroleum products to meet daily consumption demands, and there was no evidence to support claims of adequate supply.
In their counter affidavit on Wednesday, the marketers stated, “Vesting Dangote with the power of monopoly in Nigeria’s petroleum industry will kill competitive pricing of petroleum products, further deteriorate Nigeria’s critically ailing economy, and unleash untold hardship on Nigerians.”
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They also pointed out that relying solely on Dangote for petroleum products would lead to price increases and energy insecurity.
The Nigerian government had previously intervened in the dispute, emphasizing the need for cooperation among stakeholders to address concerns. Minister of State Petroleum Resources, Heineken Lokpobiri, noted that all parties demonstrated a commitment to proactive problem-solving.
Dangote’s dominance in various sectors has raised concerns about monopolistic practices and favoritism. Critics argue that his success is not solely due to business acumen but also government-backed support. The company’s refinery, which began operations in January, has the capacity to process 650,000 barrels of crude oil per day.
However, the marketers countered that Dangote’s refinery sells fuel at higher prices than imported alternatives, contradicting its intended purpose of reducing Nigeria’s dependence on imported fuel.
They said, “If Nigeria puts all her energy eggs in one basket by stopping importation of petroleum products and allowing the Plaintiff to be the sole producer and supplier of petroleum products in Nigeria, with liberty to determine the prices at which it supplies the products, the prices of petroleum products in Nigeria will continue to rise and energy security will elude Nigeria.
“In the event of any breakdown in or obstruction to the production chain of the plaintiff which stops it from producing, Nigeria will be thrown into energy crises as Nigeria does not have the reserves that would last it for at least 30 days that it would need to order, pay for, freight and import refined products into tanks in Nigeria.
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