Dangote Petroleum Refinery and Petrochemicals FZE has filed a lawsuit in the Federal High Court in Abuja, requesting the annulment of import licenses granted to the Nigeria National Petroleum Corporation Limited (NNPCL), Matrix Petroleum Services Limited, A. A. Rano Limited, and four other companies. The case, valued at N100 billion, centers on the importation of refined petroleum products that Dangote claims are already being produced domestically without shortages.
In suit number FHC/ABJ/CS/1324/2024, Dangote Refinery is also demanding N100 billion in damages from the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The refinery alleges that NMDPRA has unlawfully continued to issue import licenses to NNPCL, Matrix Energy, and others for products like Automotive Gas Oil (AGO) and Jet Fuel, despite Dangote’s production capacity exceeding Nigeria’s current daily consumption of these products.
The defendants in the case include NMDPRA, NNPCL, Aym Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.
Claims by Dangote Refinery
In its originating summons dated September 6, 2024, reviewed by Nairametrics, Dangote’s legal counsel, Ogwu James Onoja, SAN, argues that NMDPRA has violated Sections 317(8) and (9) of the Petroleum Industry Act by issuing import licenses under circumstances where no product shortfall exists. He contends that such licenses should only be granted when there is a demonstrated need for imported products.
The affidavit submitted by Ahmed Hashem, Dangote Refinery’s Group General Manager of Government and Strategic Relations, states that the import licenses issued to other companies are detrimental to Dangote’s business, which has invested billions of dollars into production. Hashem claims that these actions have resulted in a lack of patronage for Dangote’s products.
Furthermore, Hashem alleges that NMDPRA has threatened to impose a 0.5% levy on Dangote’s wholesale transactions, which contravenes statutory provisions that restrict such levies on transactions within Free Zones. He argues that the establishment of Free Zones aims to encourage competition and attract foreign investment.
Dangote’s legal team asserts that the situation necessitates judicial intervention to prevent ongoing violations of statutory provisions favoring certain entities over others. The refinery seeks an injunction to prevent NMDPRA from issuing or renewing import licenses for the defendants.
Additional Reliefs Sought
In addition to the injunction against import licenses, Dangote is pursuing the following reliefs:
• General damages of N100 billion against NMDPRA.
• An order directing NMDPRA to seal off all facilities used by the defendants for storing imported refined petroleum products.
• A declaration that as a registered Free-Zone Enterprise, Dangote is exempt from all federal, state, and local government taxes, levies, and rates.
• A declaration that imposing additional levies on Dangote is contrary to various legislative acts.
• An order directing NMDPRA to withdraw all import licenses issued to the defendants.
Court Proceedings Update
During a recent hearing before Justice Inyang Ekwo, George Ibrahim SAN, representing Dangote, informed the court of ongoing discussions between the parties aimed at reaching a settlement. He requested an adjournment to facilitate these negotiations.
Justice Ekwo subsequently adjourned the case to January 20, 2025, for a report on the settlement discussions.
