Stopping fuel importation will create monopoly, sustain fuel crisis  – Marketers

Three major oil marketers in the country, yesterday, asked the Federal High Court in Abuja to stop what they described as plot by Dangote Petroleum Refinery and Petrochemicals FZE, to monopolise the energy sector of the economy.

The marketers, including AYM Shafa Limited, A. A. Rano Limited and Matrix Petroleum Services Limited, maintained that allowing Dangote Refinery to takeover the oil sector would spell doom for the country.

However, efforts made to reach the Group Head, Communications, Dangote Group, Mr. Anthony Chiejina, last night, were unsucces-sful as several calls made to his known mobile phone were unanswered, while text and WhatsApp messages were not also responded to at press time.
The companies took the position in a reply they filed to challenge the competence of the suit Dangote’s firm filed to nullify licenses they secured to import refined petroleum products into the country.

The marketers were cited as defendants in the suit marked: FHC/ABJ/CS/1324/2024, which also has the Nigeria Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, and the Nigeria National Petroleum Corporation Limited, NNPC, as defendants.

It will be recalled that Dangote Refinery had, in its suit, queried the propriety of licences issued to other key oil marketers to bring refined petroleum products into the country when it has not recorded any shortfall in its own operations.

According to the plaintiff, NMDPRA acted in breach of Sections 317(8) and (9) of the Petroleum Industry Act, PIA, by issuing licenses for the importation of petroleum products to the defendants.

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The plaintiff told the court that the licences were issued to the defendants, “despite the production of AGO and Jet-A1 that exceeds the current daily consumption of petroleum products in Nigeria by Dangote Refinery.”

It, therefore, prayed the court to award N100billion in damages against the NMDPRA for allegedly continuing to issue import licenses to NNPCL and the other defendants for the import of petroleum products, such as Automotive Gas Oil, AGO, and jet fuel (aviation turbine fuel) into Nigeria.

Specifically, Dangote Refinery, among other things, applied for an order of injunction, restraining the 1st defendant (NMDPRA) from further issuing and/or renewing import licenses to the 2nd to 7th defendants or other companies for the purpose of importing petroleum products.

It further sought an order of court directing the 1st defendant to seal off all tank farms, storage facilities, warehouses, and stations used by the defendants for the storage of all refined petroleum products imported into Nigeria.

“An order of mandatory injunction directing the 1st defendant to withdraw immediately all import licenses issued to the 2nd-7th defendants and other companies other than the plaintiff and other local refineries for the purpose of importing refined petroleum products into Nigeria.

“An order of injunction restraining the 1st defendant from imposing and demanding a 0.5% levy meant for off-takers of petroleum products directly and an additional 0.5% wholesale levy in favour of MDGIF or any other levy or sum against the plaintiff.”

However, in their reply to the suit, dated November 5, 2024, the three marketers told the court that the plaintiff does not produce adequate petroleum products for the daily consumption of Nigerians, saying there was nothing before the court to prove the contrary.

The defendants told the court that they were well qualified and entitled to be issued a licence by the 1st defendant to import petroleum products into the country within the provisions of Section 317(9) of the PIA.

They argued that vesting the plaintiff with the power of monopoly in Nigeria’s petroleum industry, as it was seeking through the legal action, would kill competitive pricing of petroleum products in the country, further deteriorate Nigeria’s critically ailing economy “and unleash untold hardship on Nigerians, all of which constitute a recipe for disaster in the polity.

“That 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.

“That 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 the at least 30 days that it would need to order, pay for, freight and import refined products into tanks in Nigeria.

“That amid the glaring absence of any credible and demonstrable proof that the Plaintiff refines and supplies adequate petroleum products for the daily use/consumption of Nigerians, giving the plaintiff judicial imprimatur to be the sole supplier of refined petroleum products to Nigerians, thereby encouraging monopoly in a major aspect of Nigeria’s oil industry, is a recipe for disaster in Nigeria’s energy sector,” the defendants added.

They insisted that granting the reliefs sought by the plaintiff, which is aimed at making it a monopolist in Nigeria’s petroleum sector, would leave Nigeria and Nigerians at the mercy of the olaintiff, with respect to availability and cost of purchasing petroleum products in the country.
More so, the defendants told the court that they were fully qualified for the import licences issued to them by the 1st Defendant, as they duly met all the legal requirements.

“The import licences lawfully and validly issued to the defendants did not in any way whatsoever, cripple the Plaintiff’s business or its refinery.

“The import licences issued to the defendants by the 1st defendant are in line with the provisions of Petroleum Industry Act, 2021, the Federal Competition and Consumer Protection Act, 2018 and other relevant laws,” the defendants averred.

Justice Inyang Ekwo had earlier adjourned the matter till January 20, 2025, to enable the parties explore an out-of-court settlement of the dispute, even as the plaintiff expressed its readiness to withdraw the suit.

Stopping fuel importation will create monopoly, sustain fuel crisis  – Marketers

Naira exchanges for N1,720/$ in parallel market

The Naira yesterday appreciated to N1,720 per dollar in the parallel market from N1,725 per dollar on Monday

Similarly , the Naira appreciated to N1,671.32 per dollar in the Nigerian Autonomous Foreign Exchange Market, NAFEM.

Data from FMDQ showed that the indicative exchange rate for NAFEM fell to N1,671.32 per dollar from N1,676.9 per dollar on Monday indicating N5.58 appreciation for the naira.

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The volume of dollars traded (turnover) in the official market increased by 124.4 percent to $218.77 million from $79.47 million traded on Monday .

Consequently, the margin between the parallel market and NAFEM rate widened to N48.68 per dollar from N48.1 per dollar on Monday .

Naira exchanges for N1,720/$ in parallel market

Replace prepaid meters without charging consumers, FCCPC tells DisCos

THE Federal Competition and Consumer Protection Commission, FCCPC, yesterday, urged Electric Distribution Companies, DISCOs, to carry energy consumers along before classifying them into bands and adhere strictly to industry regulations on billing unmetered consumers.

FCCPC’s Executive Vice Chairman and Chief Executive Officer, Mr Tunji Bello said this at a stakeholders’ meeting at the FCCPC headquarters in Abuja.

Representatives of the Nigerian Electricity Regulatory Commission (NERC), the Nigerian Electricity Management Services Agency (NEMSA), various electricity distribution companies (DISCOs), and Unistar Hitech Systems Limited attended the meeting.

He urged them to address pressing metering issues impacting Nigerian consumers.

Citing noncompliance with NERC’s order, FCCPC directed Ikeja Electricity Distribution Company, IKEDC, and Eko Electricity Distribution Company, EKEDP, to immediately halt their replacement of Unistar prepaid meters.

His words: “From our analysis of consumer complaints, it is clear that electricity consumers routinely endure problems related to billing, metering, transformers, connections, disconnections, and customer service, among others.

“Regrettably, many of these challenges, from billing inaccuracies to inadequate customer care, are human-made. They stem from systemic inefficiencies and a troubling culture of impunity among certain service providers.

“The FCCPC Act (FCCPA) and current NERC regulations grant consumers rights, including rights to fair treatment and transparent billing.

“However, complaints reveal that consumers are often forced to pay upfront for meters without reimbursement, contrary to established guidelines under the NERC Meter Asset Provider and National Mass Metering Regulations 2021, which stipulate reimbursement through energy credits.

“Furthermore, customers with faulty meters are randomly placed on estimated billing by some DisCos, a practice that is prohibited by NERC.”

Bello said although Nigeria faces power shortages, it does not justify systemic abuses against consumers.

“Going forward, regulatory breaches in the industry will be met with immediate corrective action.

“DisCos have no excuse for failing to follow proper procedures, including reimbursement for meter purchases and ensuring faulty meters are promptly replaced.”

Also speaking, the Assistant Manager at NEMSA, Okeme Obiabo, said it is important the DisCos follow due process for meter replacement.

Obiabo said: “We’ve been addressing obsolete meters, and distribution companies must adhere to the procedures for replacing them. Meter testing and certification are essential, and DisCos are responsible for carrying out these replacements and ensuring that faulty meters are replaced promptly.”

On his part, head of consumer engagement at NERC, Zubair Babatunde reiterated the commission’s commitment to consumer protection, specifically regarding the replacement of obsolete meters.

Replace prepaid meters without charging consumers, FCCPC tells DisCos