The Dangote Petroleum Refinery and Petrochemicals FZE has filed a suit at the Federal High Court in Abuja, aiming to nullify import licenses granted to several companies, including the Nigeria National Petroleum Corporation Limited (NNPC), Matrix Petroleum Services Limited, and A. A. Rano Limited.
The refinery argues that it is already producing sufficient quantities of petroleum products to meet domestic demand.
In the suit numbered FHC/ABJ/CS/1324/2024, Dangote Refinery is also demanding N100 billion in damages from the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for allegedly continuing to issue import licenses to NNPCL, Matrix, and other companies despite the refinery’s production capacity exceeding the current daily consumption of products like Automotive Gas Oil (AGO) and Jet Fuel.
Represented by lawyer Ogwu James Onoja, SAN, the plaintiff contends that the NMDPRA is violating Sections 317(8) and (9) of the Petroleum Industry Act by issuing import licenses only when there is a shortfall in local production.
Onoja urged the court to declare that the NMDPRA is in violation of its statutory responsibilities under the Petroleum Industry Act (PIA) for not encouraging local refineries such as Dangote Refinery.
In an affidavit deposed by Ahmed Hashem, the Group General Manager of Government and Strategic Relations at Dangote Refinery, he submitted that the import licenses granted to other companies by NMDPRA are crippling the plaintiff’s business, which has committed substantial financial resources in billions of US dollars.
Hashem noted, “The import licenses granted to other companies… are crippling the plaintiff’s business.”
He also claimed that NMDPRA has threatened to impose a 0.5% levy on the refinery, stating in his affidavit, “NMDPRA has threatened to impose and demand a 0.5% levy on the plaintiff on wholesales and off-takers, as well as another 0.5% levy on wholesales to the Midstream and Downstream Gas Infrastructure Fund (MDGIF).”
Hashem emphasized that this threat is contrary to statutory provisions that limit the implementation of levies on transactions within Free Zones.
Furthermore, Hashem alleged that “there is a grand conspiracy and concerted effort by International Oil Companies and interests, in conjunction with the defendants, who are unhappy that Nigeria has an indigenous refinery ready to solve the lingering energy crisis and save the economy.”
The refinery’s legal team stated, “The intervention of the Honourable Court has become necessary in order to stem the incessant violation of statutory provisions by the 1st Defendant in favour of other entities such as the 2nd to 7th defendants.”
They sought an order of injunction restraining the NMDPRA from further issuing and/or renewing import licenses to the other companies involved.
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In addition to the restraining order against the import licenses of the affected companies, the plaintiff sought “General damages in the sum of N100,000,000,000 against the 1st Defendant (NMDPRA) and 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.”
During the latest court session, counsel for the plaintiff, George Ibrahim SAN, informed Justice Inyang Ekwo that there is a development in the case as the parties are trying to settle. “At the time we were trying to serve the originating summons on the defendants, they started discussing,” he said, requesting an adjournment to allow for potential settlement discussions. Justice Ekwo responded, “Case adjourned to January 20, 2025, for report.”
