Dangote Refinery had filed a suit at the Federal High Court in Abuja seeking to nullify import licenses issued to NNPCL, Matrix Petroleum Services Limited, A.A. Rano Limited, and four other companies. The refinery claims that these companies continue to import refined petroleum products such as Automotive Gas Oil (AGO) and Jet Fuel despite local production meeting national demand.
Abuja, Nigeria – The Nigerian National Petroleum Company Limited (NNPCL) has opposed an attempt by Dangote Petroleum Refinery and Petrochemicals FZE to amend its ongoing lawsuit over import licenses, insisting that its preliminary objection must be addressed first.
Legal Battle Over Import Licenses
Dangote Refinery had filed a suit at the Federal High Court in Abuja seeking to nullify import licenses issued to NNPCL, Matrix Petroleum Services Limited, A.A. Rano Limited, and four other companies. The refinery claims that these companies continue to import refined petroleum products such as Automotive Gas Oil (AGO) and Jet Fuel despite local production meeting national demand.
The company is also demanding N100 billion in damages from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for allegedly violating Sections 317(8) and (9) of the Petroleum Industry Act, which restricts import licenses to cases of proven supply shortfalls.
NNPCL Challenges Amendment Request
During Monday’s hearing, Dangote Refinery’s legal team sought to amend the suit, citing a clerical error in the name of the second defendant, which was incorrectly listed as “Nigeria National Petroleum Corporation” instead of “Nigerian National Petroleum Company Limited.”
However, NNPCL’s counsel, Ademola Abimbola, SAN, objected, arguing that the amendment could not proceed until the court ruled on its preliminary objection, which raises jurisdictional concerns.
“We contend that the court cannot grant the application to amend. Until my preliminary objection is determined, the court cannot amend,” Abimbola stated.
Justice Ekwo, presiding over the case, ruled that Dangote Refinery must file a formal response to NNPCL’s objection within two days, while the respondents were granted one day to reply. The case was subsequently adjourned to February 5, 2025.
Background and Industry Implications
The lawsuit has sparked significant industry debate, as Dangote Refinery insists that imported petroleum products are undermining its operations despite meeting domestic demand. In response, several oil companies, including Matrix Petroleum Services Limited, A.A. Rano Limited, and AYM Shafa Limited, have filed motions urging the court to dismiss the suit, arguing that only NMDPRA and NNPCL can assess supply shortfalls.
Meanwhile, Africa’s richest man, Aliko Dangote, has expressed frustration over regulatory challenges, even indicating a willingness to sell his multibillion-dollar refinery to NNPCL. The federal government recently allowed marketers to source petroleum products directly from Dangote Refinery, following NNPCL’s decision to withdraw as a middleman.
The court’s ruling on February 5 is expected to shape the future of petroleum product imports and refining in Nigeria.
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