Dangote Refinery Drags NNPCL, Others to Court, Seeks Annulment of Granted Import Licenses

Dangote Refinery has initiated legal proceedings at the Federal High Court in Abuja, requesting the annulment of import licenses issued to the Nigerian National Petroleum Company Limited (NNPCL), Matrix Petroleum Services Limited, and A. A. Rano. The case, designated FHC/ABJ/CS/1324/2024, also seeks N100 billion in damages from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

In its petition, Dangote Refinery argues that the NNPCL and the aforementioned companies obtained import licenses for petroleum products despite the refinery’s capacity to produce Automotive Gas Oil (AGO) and Jet-A1 that exceeds Nigeria’s current daily consumption needs. The company claims that the NMDPRA has been improperly granting these licenses, which has adversely affected its operations.

Dangote’s legal counsel, Ogwu James Onoja, SAN, contends that the NMDPRA is violating Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licenses for the importation of petroleum products without evidence of a shortage. The refinery asserts that such licenses should only be granted under circumstances where local production is insufficient.

The lawsuit names several defendants, including NMDPRA, NNPCL, Aym Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited. Dangote Refinery claims that the NMDPRA’s actions are undermining local refineries, inhibiting the growth and investment in the Nigerian oil sector.

Additionally, the refinery expressed concern over a recent letter from the NMDPRA, which mentioned the enforcement of a 0.5% levy on wholesalers and off-takers, along with a corresponding 0.5% levy on wholesale transactions aimed at funding the Midstream and Downstream Gas Infrastructure Fund (MDGIF). Dangote Refinery argues that this course of action contradicts existing statutory regulations.