Dangote Petroleum Refinery and Petrochemicals FZE has filed a lawsuit with the Federal High Court in Abuja, requesting the annulment of import licences granted to the Nigeria National Petroleum Corporation Limited, Matrix Petroleum Services Limited, A. A. Rano Limited, and four other companies.
The refinery argues that these licenses permit the importation of refined petroleum products that it is already producing without shortfalls, according to Nairametrics.
In suit number FHC/ABJ/CS/1324/2024, Dangote Refinery is also claiming N100 billion in damages against the Nigeria Midstream and Downstream Petroleum Regulatory Authority.
The company alleges that the NMDPRA has continued to issue import licenses for products such as Automotive Gas Oil, and Jet Fuel to NNPCL and other entities, despite the refinery’s capacity to meet domestic demand.
Joined as defendants in the case are NMDPRA, NNPCL, Aym Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited (1st to 7th defendants).
In its originating summons dated September 6, 2024, the plaintiff’s lawyer, Ogwu James Onoja, SAN, urged the court to declare that the NMDPRA is in violation of Sections 317(8) and (9) of the Petroleum Industry Act.
He contended that import licenses for petroleum products should only be granted in situations where there is a documented shortfall in supply.
This legal action emphasizes the refinery’s position that it can adequately meet domestic demand without the need for additional imports.
He further requested that the court declare NMDPRA in violation of its statutory responsibilities under the PIA for failing to promote local refineries like Dangote Refinery.
In an affidavit submitted by the Group General Manager of Government and Strategic Relations at Dangote Refinery, Ahmed Hashem, he stated that the import licenses issued to other companies for importing AGO, and Jet-A1 are severely undermining the plaintiff’s business.
Hashem highlighted that Dangote Refinery has invested substantial financial resources, amounting to billions of US dollars, into its operations to ensure local production.
He noted that the plaintiff’s products are largely unpatronized as a result of the alleged actions of NMDPRA.
This lack of support for local production is contributing to the challenges faced by Dangote Refinery in maintaining its market presence and profitability.
He stated that NMDPRA has threatened to impose a 0.5% levy on the plaintiff for wholesales and off-takers, as well as an additional 0.5% levy on wholesales to the Midstream and Downstream Gas Infrastructure Fund (MDGIF), as outlined in a letter dated June 10, 2024.
He argued that this demand contravenes statutory provisions that restrict the implementation of levies on transactions conducted within Free Zones.
He further stated that there is an alleged 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 intervention of the Honourable Court has become necessary in order to stem the incessant violation of statutory provisions by the 1st Defendant in favor of other entities such as the 2nd to 7th defendants,” the plaintiff stated.
The refinery’s legal team expressed that the plaintiff is under significant distress and that its investments are at risk unless the Honourable Court intervenes.
They are seeking an injunction to restrain the first defendant from issuing or renewing import licenses to the second through seventh defendants, or any other companies, for the importation of petroleum products.
In addition to a 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.”
Recall that Aliko Dangote, recently expressed his willingness to sell his multibillion-dollar oil refinery to the state-owned NNPC Limited.
This follows escalating disputes with regulatory authorities and equity partners, leading him to reconsider his investment choices in Nigeria.
Additionally, Dangote has raised concerns about the importation of substandard petroleum products by other companies into the country.
