Dangote Petroleum Refinery and Petrochemicals has filed a ₦100 billion lawsuit against the Nigerian National Petroleum Company Limited (NNPCL) and six other firms, seeking to invalidate their import licences for refined petroleum products.
The case, which is before the Federal High Court in Abuja, centers on the issuance of import licences by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) despite claims of adequate local production.
The defendants in the suit include NNPCL, Matrix Petroleum Services Limited, AA Rano Limited, A.Y.M Shafa Limited, T. Time Petroleum Limited, and 2015 Petroleum Limited.
Dangote Refinery, which began domestic production of petroleum products such as diesel and jet fuel, argues that the import licences granted to these companies are unnecessary, as its facility in Ibeju-Lekki, Lagos, has the capacity to meet Nigeria’s current consumption levels.
The refinery claims that NMDPRA’s actions have hindered local market patronage for its products.
The refinery is demanding that the court issue an injunction preventing NMDPRA from renewing or issuing further import licences for the defendants.
Dangote also seeks general damages of ₦100 billion against NMDPRA, citing losses due to the issuance of the licences.
In its submission, Dangote’s legal team contended that NMDPRA violated sections 317(8) and (9) of the Petroleum Industry Act (PIA), which stipulates that import licences should only be granted in instances where there is a proven shortfall in domestic supply.
According to the refinery, no such shortage currently exists, making the continued issuance of licences unlawful.
The refinery also took issue with NMDPRA’s intention to impose a 0.5% levy on its wholesale transactions, arguing that as a free-zone enterprise,
it is statutorily exempt from such levies.
Dangote contended that the free-zone status was established to foster competition and attract foreign investments, and any imposition of additional levies contravenes legislative acts.
Among the reliefs sought, Dangote is asking the court to declare that it is exempt from federal, state, and local taxes, levies, and rates, and to order NMDPRA to withdraw the import licences granted to the defendants.
The refinery also requested an order sealing off all facilities used by the defendants for storing imported petroleum products.
At the Monday hearing, Dangote’s counsel informed the court that settlement discussions between the parties were ongoing and requested an adjournment to allow for further negotiations.
Justice Inyang Ekwo adjourned the case to January 20, 2025, for a report on the settlement progress.
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