The Federal Competition and Consumer Protection Commission (FCCPC) has urged the Court of Appeal in Abuja to overturn a Federal High Court decision and join the Commission as a defendant in the lawsuit challenging Dangote Petroleum Refinery and Petrochemicals FZE’s N100 billion import license case.
The appeal, by FCCPC’s lawyer, Olanrewaju A. Osinaike Esq., dated March 18, 2025, and exclusively cited by Nairametrics, contests the ruling of Justice Inyang Ekwo, who had earlier dismissed the Commission’s request to be joined in the case.
Dangote Refinery and the FCCPC have been in a legal battle over the Commission’s relevance in the pending suit, marked FHC/ABJ/CS/1324/2024, which seeks to nullify import licenses issued to certain Nigerian oil companies by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
These companies include the Nigerian National Petroleum Company Limited (NNPCL), Matrix Petroleum Services Limited, A.A. Rano Limited, and four others.
Legal Dispute and High Court Ruling
Nairametrics previously reported that Osinaike argued that the FCCPC sought to be joined as a necessary party in the High Court proceedings because its interests would be affected by the outcome of the suit.
- The Commission contended that preventing the disputed oil companies from operating the licenses in question could create anti-competitive conditions or a monopoly in favor of Dangote Refinery.
- The FCCPC maintained that Nigeria operates a free-market economy, allowing individuals and entities to participate in various sectors without undue restrictions.
However, in its counterarguments, as seen by Nairametrics, Dangote Refinery stated:
“It is not true that the plaintiff’s suit is monopolistic but solely aimed at revamping local refining of petroleum products in Nigeria.”
- The refinery further argued that the Petroleum Industry Act (PIA) does not grant the Federal Competition and Consumer Protection Commission (FCCPC) the authority to issue licenses or impose levies on it.
- Dangote Refinery’s legal representative, Ibrahim, described the FCCPC as a “meddlesome interloper” with no legal standing in a case centered on the PIA.
On Monday, ruling on the FCCPC’s joinder application, Justice Ekwo stated that he could not find any relevance of the Commission in a case focused on the PIA.
“Looking at the application filed by the FCCPC, I do not find any ground or substance that makes the FCCPC relevant in this case.
“ I am of the opinion that the subject matter of the case can be resolved without the FCCPC,” Ekwo ruled.
The judge subsequently dismissed the FCCPC’s application, describing it as “unmeritorious” and adjourned the matter till May 6, 2025, for Dangote Refinery to present its amended case.
FCCPC Disagrees, Commences Appeal
Disagreeing with the Federal High Court ruling, Osinaike has appealed against the decision, naming Dangote Refinery, NNPCL, A.A. Rano, and others as respondents.
- The appeal is based on the following grounds:
- Denial of Fair Hearing
- The FCCPC lawyer argued that the trial court erred in law and denied the FCCPC its right to a fair hearing when it summarily ruled that the Commission had no claim against any of the parties in Dangote Refinery’s suit.
- He stated that the court further held that the case could be determined effectively without FCCPC’s participation.
- Osinaike maintained that the FCCPC is a statutory defendant in all matters related to competition and monopoly in Nigeria and that the Refinery’s suit directly relates to anti-competition and monopoly concerns in the petroleum industry.
“The Appellant is the statutory body responsible for the administration and enforcement of the provisions of the Federal Competition and Consumer Protection Act. One of its core functions is to review economic activities in Nigeria to identify anti-competitive, anti-consumer protection, and restrictive practices that may adversely affect consumer interests,” he argued.
He urged the Appeal Court to recognize that part of the FCCPC’s mandate is to eliminate anti-competitive agreements, deceptive marketing, and unfair business practices.
According to him, Dangote Refinery is seeking to allegedly abuse its dominant market position by preventing other players in the sector from importing petroleum products.
- FCCPC’s Joinder Request Has Merit
- The FCCPC’s lawyer urged the Court of Appeal to set aside the Federal High Court’s ruling, arguing that the FCCPC’s joinder application had merit and should not have been dismissed.
- The Commission insisted that it is a necessary party in Dangote Refinery’s action because the case touches on its statutory functions and duties as outlined in the Federal Competition & Consumer Protection Act, 2018.
“The joinder of the FCCPC (Appellant) to the suit at the trial court is necessary, as the Appellant should be bound by the outcome of the action. This would also prevent parallel litigations in the future,” he added.
He urged the Appeal Court to set aside the High Court’s ruling and grant the FCCPC’s request to be joined as the 8th defendant in the suit.
What This Means
With the latest developments, the legal team of FCCPC, Dangote Refinery, and others will now argue the FCCPC’s relevance in the refinery’s import license case before superior courts.
Pending the superior courts’ decision on FCCPC appeal, the ruling of Ekwo which dismissed the Commission’s joinder suit, stands.
What You Should Know
The trial court had earlier dismissed a preliminary objection filed by NNPCL against Dangote Refinery, ruling that the objection was incompetent.
- Africa’s richest man, Aliko Dangote, had previously expressed willingness to sell a stake in his multibillion-dollar refinery to NNPCL, amid escalating disputes with regulators and equity partners last year.
- Dangote had also accused other petroleum importers of bringing substandard petroleum products into Nigeria.
Nairametrics reported that the federal government eventually allowed oil marketers to purchase petroleum products directly from Dangote Refinery, following NNPCL’s decision to withdraw as an intermediary between the refinery and marketers.
