Dangote Refinery claims that the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) violated the Petroleum Industry Act by issuing licenses despite the refinery’s capacity to meet local demand.
The Nigerian National Petroleum Company Limited (NNPCL) is seeking to dismiss a lawsuit filed by Dangote Petroleum Refinery and Petrochemicals FZE, labeling it “incompetent.”
This development comes after Dangote Refinery petitioned the Federal High Court in Abuja to nullify import licenses granted to NNPCL, Matrix Petroleum Services Limited, A. A. Rano Limited, and four other companies for importing refined petroleum products.
Dangote Refinery claims that the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) violated the Petroleum Industry Act by issuing licenses despite the refinery’s capacity to meet local demand.
They’re seeking N100 billion in damages and an order to stop NMDPRA from issuing further licenses.
The case has sparked heated debates, with some criticizing Dangote’s alleged monopoly tactics.
The marketers argue that Dangote’s refinery cannot meet Nigeria’s fuel demands, and importation is necessary to supplement the shortage. Others see Dangote’s move as an attempt to stifle competition and control the market.
NNPCL seeks two orders, which include an order of the honourable court striking out the suit for lack of jurisdiction and alternatively, an order striking out the name of the 2nd defendant, NNPCL, from the suit.
NNPCL in its preliminary objection challenging the suit, informed the court that the plaintiff lacks the locus standi to seek such reliefs against it, even as it noted that suit doesn’t disclose any cause of action, the News Agency of Nigeria reports.
Dangote in Suit No: FHC/ABJ/CS/1324/2024 before an Abuja Federal High Court, against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigeria National Petroleum Company Limited (NNPC), and several other petroleum companies had among other things, questioned the propriety of allowing the NNPCL and other key oil marketers to bring refined petroleum products into the country when it has not recorded any shortfall in its own operations.
Other major marketers joined in the suit are – Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the NNPC and some major oil marketers that included AYM Shafa Limited, A. A. Rano Limited and Matrix Petroleum Services Limited.
In the suit dated September 6, the plaintiff (Dangote Petroleum Refinery and Petrochemicals) prayed the court to declare that NMDPRA is in violation of Sections 317(8) and (9) of the Petroleum Industry Act by issuing licenses for the importation of petroleum products.
The Dangote Oil Refinery, a massive project by Africa’s richest man, Aliko Dangote, aims to transform Nigeria’s energy sector.
According to the company, once fully operational, it will be the largest refinery in Africa, producing 650,000 barrels per day.
According to Dangote Refinery, import licenses for petroleum products should only be granted when there’s a proven shortage in domestic production.
This stance is based on Sections 317(8) and (9) of the Petroleum Industry Act (PIA), which restrict the issuance of import licenses to situations where local production can’t meet demand.
In essence, the company is advocating for a controlled importation process to ensure that domestic refineries like theirs can meet the country’s petroleum needs before resorting to imports
“The plaintiff’s suit is premature. The plaintiff’s suit discloses no cause of action. The 2nd defendant is not a competent party. The plaintiff’s suit is incompetent. This honourable court lacks the jurisdiction to hear this suit,” the NNPCL said.
An affidavit in support of the application deposed to by Isiaka Popoola, a clerk in the law firm of Afe Babalola & Co., counsel for the NNPCL, said one of their lawyers, Esther Longe who perused Dangote’s originating summons, affidavit and written address noted that an examination of the processes showed that NNPC sued by the refinery was a non-existent entity.
Popoola averred that the court lacked jurisdiction over the 2nd defendant sued as NNPC.
“This 2nd defendant in this suit as consistently seen on the face of the plaintiff’s originating summons, the affidavit in support and the written address as ‘Nigeria National Petroleum Corporation Limited (NNPC)’.
“A simple search on the CAC website shows that there is no entity called “Nigeria National Petroleum Corporation Limited (NNPC),” the affidavit said.
Justice Inyang Ekwo adjourned the case until January 20, 2025, to allow for out-of-court settlement discussions between the parties and for a report of settlement or service.
