However, Dangote’s legal representative, George Ibrahim (SAN), told the court that all parties are exploring an out-of-court settlement.
Lagos, Nigeria – The Dangote Group has decided to withdraw its N100 billion lawsuit against the Nigeria National Petroleum Corporation Limited (NNPCL), the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and other companies over the issuance of petroleum import licenses.
Anthony Chiejina, Chief Branding and Communications Officer of the Dangote Group, confirmed that the company will formally withdraw the case by January 2025, when the court reconvenes.
Chiejina described the matter as an old issue that began in June 2024, eventually leading to the lawsuit being filed in September. However, following President Bola Tinubu’s directive that crude oil and refined product sales be conducted in naira, as approved by the Federal Executive Council (FEC), the parties have entered discussions to resolve the dispute.
“We have made tremendous progress, and events have overtaken this development,” Chiejina said. “No party has been served with court processes, and there is no intention to proceed. We have agreed to put a halt to the proceedings. No orders have been made, and there are no adverse effects on any party.”
The lawsuit, marked FHC/ABJ/CS/1324/2024, was filed by Dangote Petroleum Refinery and Petrochemicals FZE, seeking to nullify the import licenses issued by NMDPRA to NNPCL and Matrix Petroleum Services Limited.
The company alleged that the licenses breached the Petroleum Industry Act (PIA), impacting its significant investments in producing petroleum products, including Automotive Gas Oil (AGO) and Jet-A1 fuel (aviation turbine fuel), which totaled billions of dollars.
In addition to NNPCL and Matrix Petroleum, the suit also named A.Y.M. Shafa Holdings Limited, A. A. Rano Limited, T. Time Petroleum Limited, and 2015 Petroleum Limited as defendants.
According to Ahmed Hashem, Group General Manager of Government and Strategic Relations at Dangote Petroleum, the import licenses issued to these companies undermined the refinery’s business operations. Hashem argued that the court should step in to stop the violation of the PIA’s provisions.
One of the major reliefs sought by Dangote Petroleum was a declaration that it is exempt from all federal, state, and local government taxes, levies, and other charges, under various legislative acts, including the Nigerian Export Processing Zone Act and the Finance Act.
However, Dangote’s legal representative, George Ibrahim (SAN), told the court that all parties are exploring an out-of-court settlement. As a result, Justice Inyang Ekwo has adjourned the hearing to January 20, 2025, allowing discussions to continue.
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