Is Dangote Trying to Monopolise Nigeria’s Crude Oil Market? 

In Abuja, three key oil marketers have gone to the Federal High Court to stop Dangote Petroleum Refinery and Petrochemicals FZE from trying to take over Nigeria’s crude oil market. The companies involved are AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited. They argue that letting Dangote Refinery control the oil sector would be bad for Nigeria.

The dispute started when Dangote Refinery sued to cancel the licenses these companies had to bring refined petroleum products into Nigeria. Dangote argued that there was no need for these licenses because his company did not have any production shortages.

Dangote Refinery has also asked the court to stop the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other authorities from giving out new licenses to these companies for importing oil products. They also want the court to close all the storage places used by these companies for storing imported oil.

In response, the oil marketers said that Dangote does not produce enough oil to meet Nigeria’s daily needs, and there is no proof to show otherwise. They believe that giving Dangote a monopoly in the oil market would lead to higher prices and make economic problems in Nigeria worse, putting a lot of pressure on the people.

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The marketers also mentioned the risk of depending only on Dangote for oil. They said if there’s a problem in Dangote’s production, Nigeria could face a big energy crisis because the country doesn’t have enough reserves to manage without having to urgently buy oil from other countries.

They argued that if Dangote is the only one allowed to supply oil, he could set high prices, and it would be hard to ensure energy security. They emphasised that the licenses they got were completely legal, followed all the rules, and did not hurt Dangote’s business.

The court has delayed the case until January 20, 2025, to see if the companies can settle their differences outside of court. Dangote has shown interest in dropping the lawsuit. This legal issue highlights the ongoing problems in Nigeria’s oil market regarding who gets to control it, how the rules are followed, and how it affects the economy and the people of Nigeria.