Dangote Petroleum Refinery and Petrochemicals has filed a lawsuit against the Nigerian National Petroleum Company Limited (NNPCL), Matrix Petroleum Services Limited, AA Rano Limited, and four additional firms in the Federal High Court in Abuja, aiming to have their import licenses revoked.
The central issue of the lawsuit pertains to the importation of refined petroleum products, which Dangote Refinery argues are already being produced in sufficient quantities within the country.
Additionally, Dangote Refinery is suing the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for ₦100 billion in damages.
Despite Dangote’s production capacity being higher than Nigeria’s current daily diesel and jet fuel consumption, the refinery claims that the NMDPRA has unlawfully continued to issue import permits to NNPCL, Matrix Energy, and other entities for these products.
The defendants in this case include T. Time Petroleum Limited, 2015 Petroleum Limited, A.Y.M. Shafa Limited, AA Rano Limited, NMDPRA, NNPCL, and Matrix Petroleum Services Limited.
In its initial summons, Dangote asserted that the NMDPRA violated Articles 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing import licenses when there was no shortage of products. The refinery contends that such licenses should only be granted when a clear demand for imported goods exists.
According to a statement from the Dangote Refinery Group, the issuance of import licenses to other companies has adversely impacted their operations, resulting in billions of dollars in production investments. They argue that this has led to decreased interest in Dangote’s products.
The group also claimed that the NMDPRA threatened to impose a 0.5% levy on Dangote’s wholesale transactions, which they argue violates legal provisions against such levies in free zones, aimed at promoting competition and attracting foreign investment.
Dangote’s legal representatives emphasized the need for judicial intervention to prevent ongoing violations of legislative requirements that favor certain companies over others.
The refinery is seeking an injunction to halt the issuance or renewal of import permits by the NMDPRA to the defendants, a declaration confirming that Dangote is exempt from all federal, state, and local taxes as a registered free-zone enterprise, and an order for the NMDPRA to revoke all import licenses granted to the defendants. They are also requesting general damages of ₦100 billion from the NMDPRA and an order to seal off all facilities used by the defendants for storing imported refined petroleum products.
During the court proceedings on Monday, Dangote’s legal team informed the judge about ongoing settlement discussions and requested an adjournment to facilitate these talks. The case has been rescheduled to January 20, 2025, for further proceedings before Justice Inyang Ekwo.
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