Business

Centre Faults Orchestrated Attack On Matrix Energy Group By Dangote

Posted by: Quickresponse | August 21, 2024

Civil Society Organisation, Centre for Public Accountability (CPA) has expressed concern over the troubling development regarding recent activities within Nigeria’s energy sector.

The Centre in a statement by its spokesman, Ebenezer Oluwole, said it uncovered plans by the Dangote Group to undermine the operations of Matrix Energy Group, a leading player in petroleum supply and distribution in Nigeria.

It said this attack on Matrix Energy indicates a larger, more concerning trend of the Dangote Group’s ongoing efforts to monopolize Nigeria's energy sector.

The Centre said: “The latest actions against Matrix Energy are not isolated incidents but rather part of a series of desperate attempts by the Dangote Group to extend its dominance over the energy market.

“This pattern mirrors the group's past behaviour in other industries, where it has systematically dismantled competitors to secure monopolistic control. The consequences of such tactics are harmful to individual companies and detrimental to the broader market competition and consumer interests.

“Adding complexity to the situation, it has come to our attention that MRS Oil, a company also involved in the petroleum sector, has been importing fuel from Malta, a similar source to Matrix Energy's supply.

“For the avoidance of doubt, MRS Oil is owned by Sayyu Dantata, the younger brother of Aliko Dangote, the founder of the Dangote Group. This raises pertinent questions about the motives behind the attacks on Matrix Energy. Why is Dangote targeting Matrix Energy and not his own brother's company, MRS Oil?

“It is imperative to question whether there is a strategic plan at play. Nigerians must know at this point that the Dangote Refinery is orchestrating a scenario where his brother's company, MRS Oil, would dominate the downstream sector by eliminating competitors like Matrix Energy.

“Simultaneously, the Dangote refinery will then control the upstream sector, creating an untenable situation for other market players and consolidating the group’s power across the entire industry.

“The situation is further compounded by a recent report from the online medium Daily Nigerian. This report alleges that the allegations, that Matrix Energy has been involved in substandard fuel importation from Malta and Russia, are sponsored by a Nigerian billionaire, who is behind the smear campaign.

“Our investigation indicates that the Dangote Group is indeed behind these damaging claims against Matrix Energy, aimed at discrediting and destabilizing the company.

“We hereby at this point, call upon relevant authorities to thoroughly investigate these allegations and the broader implications of Dangote Group's actions. The integrity of Nigeria’s energy sector must be safeguarded against monopolistic practices that threaten to stifle competition and harm consumers.

“Transparency and fairness in business practices are critical to maintaining a healthy and competitive market environment. Dangote if left unchecked at this point will end up destroying the entire oil sector for his gains that will affect the over 200 million Nigerians.

“It is unhealthy and a big security risk for an economy such as ours to depend solely on Dangote refinery for our energy needs. He can wake up one morning and decide to shut down, after successfully eliminating other oil traders that have served us for decades if Nigeria falls to his blackmail of giving him our crude and directing marketers only to him.”

The Centre urged all stakeholders, including regulatory bodies and industry participants, to take a stand against these underhanded tactics. The CPA said it is essential to ensure that all players in the energy sector can operate on a level playing field, free from intimidation and sabotage.

“We must work together to uphold the principles of fair competition and protect the interests of both businesses and consumers alike. We also encourage the public and the media, in particular, to remain vigilant and critical of such developments.

“Unchecked corporate dominance can have far-reaching negative impacts, and it is crucial to address these issues transparently and promptly. As always, CPA remains committed to advocating for transparency and fairness in the energy sector.

We stand firmly against any efforts to monopolize or destabilize Nigeria's energy sector through unethical and aggressive tactics. We will continue to monitor the situation closely and take necessary actions to protect the integrity of the industry and the overall interest of all Nigerians.”