The Federal Excessive Court docket Abuja has dismissed the Federal Competitors and Client Safety Fee’s (FCCPC) request to hitch and problem Dangote Petroleum Refinery and Petrochemicals FZE’s N100 billion import license lawsuit.
Justice Inyang Ekwo dismissed FCCPC’s joinder request on Tuesday whereas ruling on its utility to hitch and show Dangote’s alleged deliberate monopoly within the oil and gasoline sector.
The pending go well with by Dangote Refinery, marked FHC/ABJ/CS/1324/2024, seeks to void import licenses issued to some Nigerian oil firms by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
These firms embrace the Nigerian Nationwide Petroleum Firm Restricted (NNPCL), Matrix Petroleum Providers Restricted, A.A. Rano Restricted, and 4 others.
What FCCPC and Dangote Refinery mentioned concerning the N100 pending go well with
In its movement and accompanying processes solely seen by Nairametrics, the FCCPC authorized group, led by Barrister Olarenwaju Osinaike, had acknowledged that FCCPC is in search of to be joined as a needed celebration to the current proceedings as a result of its curiosity would allegedly be affected by the result of the go well with.
- The Fee acknowledged that the case includes whether or not stopping the oil firms in dispute from working the mentioned licenses would result in anti-competition or monopoly in favor of Dangote Refinery, amongst others.
- He submitted that one of many important points raised within the refinery’s originating summons allegedly “pertains to anti-competition and monopoly within the petroleum business sector.”
- He drew the courtroom’s consideration to the capabilities of the FCCPC, which, in line with him, embrace eliminating anti-competitive agreements, deceptive, unfair, misleading, or unconscionable advertising and marketing, buying and selling, and enterprise practices.
- The FCCPC contended that Nigeria operates a free-market financial system, permitting people and entities to take part in varied sectors with out hindrance.
However in its counter to FCCPC’s request to hitch the go well with, seen by Nairametrics, Dangote Refinery responded that:
“It’s not true that the plaintiff’s go well with is monopolistic however solely geared toward revamping native refining of petroleum merchandise in Nigeria.”
- Ibrahim submitted that his consumer was granted a license by NMDPRA beneath the Petroleum Trade Act to import, produce, and refine petroleum merchandise.
- He maintained that NMDPRA ought to solely grant import licenses according to Part 317(8) and (9) of the Petroleum Act, which allows the import of refined merchandise solely when there’s a scarcity in native manufacturing.
“Dangote Refinery is ready to meet the every day consumption demand of the nation,” he acknowledged, including that NMDPRA allegedly granted licenses to the defendants to import petroleum merchandise opposite to Part 317(8) and (9) of the Petroleum Trade Act.
“The Petroleum Trade Act doesn’t give the Federal Competitors and Client Safety Fee (FCCPC) authority to problem licenses or impose levies on the plaintiff,” he continued, describing the FCCPC as a “meddlesome interloper” that shouldn’t be allowed to hitch the go well with.
He additional submitted that FCCPC has no enterprise in a case revolving across the PIA—an Act of the Nationwide Meeting .
He acknowledged that FCCPC ought to as a substitute search an modification to the legislation if it has any grievance concerning the petroleum sector.
Court docket’s Ruling
Ruling on the joinder utility by FCCPC, Ekwo mentioned whereas the legislation permits a needed celebration to hitch a case, that celebration should show its relevance within the matter.
- Ekwo held that having reviewed the submissions of FCCPC and Dangote Refinery, he couldn’t discover how the Fee is related to the case bordering on PIA.
“Trying on the utility filed by the FCCPC, I don’t discover any floor or substance that makes FCCPC related on this case.
“I’m of the opinion that that subject material of the case may be resolved with out the FCCPC,” Ekwo dominated.
- The choose discovered that the appliance by FCCPC is “unmeritorious”.
- He subsequently made an order dismissing the FCCPC utility.
The choose then adjourned until Could 6, 2025 for Dangote Refinery to say its amended case once more.
What You Ought to Know
The trial courtroom had earlier dismissed a preliminary objection by the NNPCL in opposition to Dangote Refinery, including that the appliance was incompetent.
Africa’s richest man, Aliko Dangote had introduced his willingness to promote his multibillion-dollar refinery to NNPCL, amid escalating disputes with regulators and fairness companions, final 12 months.
Dangote had beforehand accused different importers of bringing substandard petroleum merchandise into Nigeria.
Nairametrics reported that the federal authorities later allowed entrepreneurs to buy petroleum merchandise instantly from Dangote Refinery, following NNPCL’s choice to withdraw as an middleman between the refinery and entrepreneurs.
