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Dangote Refinery asks Court to cancel import licenses of NNPCL, Matrix, others in N100 billion case

Simon Osuji by Simon Osuji
October 21, 2024
in Business
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Dangote Refinery asks Court to cancel import licenses of NNPCL, Matrix, others in N100 billion case
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Dangote Petroleum Refinery and Petrochemicals FZE has requested that the Federal High Court in Abuja cancel the import licenses given to the Nigeria National Petroleum Corporation (NNPC), Matrix Petroleum Services, A. A. Rano, and four other oil companies, according to a report by Nairametrics.

The licenses allow these companies to import refined petroleum products, but Dangote argues that it already produces enough of these products without any shortages, so there is no need for imports.

The case, registered as suit number FHC/ABJ/CS/1324/2024, also seeks N100 billion in damages from the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Dangote Refinery alleges that the regulator’s continued issuance of import licenses for products such as Automotive Gas Oil (AGO) and Jet-A1 fuel is causing substantial financial losses for the refinery.

According to the suit, Dangote Refinery, through its legal representative Ogwu James Onoja (SAN), argues that NMDPRA is violating the Petroleum Industry Act (PIA), particularly Sections 317(8) and (9), which limit the issuance of import licenses to situations where there is a shortfall in domestic petroleum production.

The refinery claims that its production capacity exceeds the current daily consumption of AGO and Jet-A1 fuel in Nigeria, and as such, there is no need for the importation of these products.

Joined as defendants in the suit are NMDPRA, NNPCL, Aym Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.

The refinery’s legal team has also pointed to what it calls a “grand conspiracy” by International Oil Companies (IOCs) and other stakeholders, in conjunction with the defendants, to undermine Nigeria’s first indigenous refinery.

The suit claims that these entities are displeased with Dangote Refinery’s ability to solve the country’s energy crisis and save the economy from excessive import dependence.

Dangote Refinery is seeking an injunction to restrain NMDPRA from issuing or renewing any further import licenses for refined petroleum products to the defendants or any other companies. The plaintiff also seeks a court order to shut down all tank farms, storage facilities, and warehouses used by the defendants to store imported petroleum products.

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