Dangote Refinery Asks Court To Nullify NNPC, Others Import Licenses

The Dangote Petroleum Refinery and Petrochemicals FZE has approached the Federal High Court in Abuja, seeking to nullify the import licenses issued to the Nigeria National Petroleum Corporation Limited (NNPC), Matrix Petroleum Services Limited, A. A. Rano Limited, and four other companies.

The refinery argues that these licenses are unnecessary as it already produces sufficient quantities of refined petroleum products, including Automotive Gas Oil (AGO) and Jet Fuel, to meet the country’s demands.

In a suit number FHC/ABJ/CS/1324/2024, Dangote Refinery is not only asking the court to invalidate these import licenses but is also pursuing N100 billion in damages against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The refinery alleges that the NMDPRA has continued to grant import licenses to the aforementioned companies despite Dangote’s capacity to produce enough petroleum products to cover Nigeria’s daily consumption.

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The lawsuit includes several defendants, including NMDPRA, NNPC, and other companies involved in the importation of refined petroleum products.

In its originating summons dated September 6, 2024, the refinery’s legal team contends that the NMDPRA’s actions violate sections of the Petroleum Industry Act, which stipulates that import licenses should only be issued in cases of product shortfalls.

The plaintiff argues that these actions hinder the growth of local refineries, like Dangote, which have invested billions of dollars into production.

Additionally, the affidavit filed by Ahmed Hashem, Dangote Refinery’s Group General Manager of Government and Strategic Relations, highlights that the import licenses are detrimental to the refinery’s business operations, resulting in unutilized production capacity and financial losses.

The affidavit also mentions threats of
levies imposed by NMDPRA, which the refinery claims are contrary to established laws governing Free Zones in Nigeria.

At a recent court session presided over by Justice Inyang Ekwo, it was revealed that discussions aimed at reaching a settlement between the involved parties were underway.

The plaintiff’s counsel, George Ibrahim SAN, requested an adjournment to allow for further negotiations. The case has been adjourned to January 20, 2025, for a potential report on the outcome of these discussions.