Toba Owojaiye reporting
Abuja, Nigeria
Dangote Petroleum Refinery and Petrochemicals FZE has filed a lawsuit at the Federal High Court in Abuja, seeking to nullify the import licenses granted to the Nigeria National Petroleum Corporation Limited (NNPCL), Matrix Petroleum Services Limited, A. A. Rano Limited, and four other companies.
Truth Live News gathered that the suit, numbered FHC/ABJ/CS/1324/2024, accuses the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of unlawfully issuing these licenses for the importation of refined petroleum products like Automotive Gas Oil (AGO) and Jet Fuel, despite sufficient local production by the Dangote Refinery.
Representing Dangote Refinery, Senior Advocate Ogwu James Onoja argued that NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA), which restricts the issuance of import licenses unless there is a product shortfall. He contended that the continued issuance of these licenses undermines local refineries, contravening NMDPRA’s legal responsibilities. Dangote is seeking N100 billion in damages from NMDPRA for the alleged breach.
According to the affidavit by Ahmed Hashem, Group General Manager at Dangote Refinery, NMDPRA’s actions have significantly hindered the refinery’s business. He claimed that their products remain underutilized due to the ongoing imports. Further, he accused NMDPRA of imposing levies contrary to Free Zone regulations, which are designed to promote competition and foreign investment by offering tax benefits.
The lawsuit also raises concerns about a possible conspiracy involving international oil interests and the defendants, who allegedly oppose the presence of a major indigenous refinery. As part of the relief sought, Dangote Refinery has requested a court order to prevent further issuance or renewal of import licenses for refined petroleum products to the named companies.
This legal battle comes at a time when Aliko Dangote, Africa’s richest man, has been openly critical of Nigeria’s petroleum regulatory framework. Recent reports indicated his willingness to sell his refinery to NNPC Limited after clashes with authorities and partners over operational decisions. Previously, Dangote had expressed concerns over the quality of imported petroleum products, accusing other importers of flooding the market with substandard supplies.
Earlier this year, NNPC ceased acting as an intermediary between marketers and the Dangote Refinery, prompting the government to allow direct purchases from Dangote. This decision was seen as a move to support local production, yet the continued issuance of import licenses appears to contradict this stance.
This high-stakes legal battle highlights persistent challenges within Nigeria’s energy sector. If Dangote wins, the ruling could significantly impact the structure of petroleum importation, potentially boosting local production. However, a defeat could embolden NMDPRA’s authority to continue issuing licenses, raising questions about the future of Nigeria’s commitment to local refining. Public sentiment may tilt towards Dangote’s position, especially if seen as a defense of indigenous industry against perceived regulatory favoritism.