Dangote Refinery last year, filed a lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian National Petroleum Corporation Limited (NNPCL), listed as the 1st and 2nd defendants, respectively.
Others listed include; AYM Shafa, A. A. Rano, T. Time Petroleum, 2015 Petroleum, and Matrix Petroleum—seeking to nullify import licenses issued for refined petroleum products.
The case, assigned to Justice Inyang Ekwo of the Federal High Court in Abuja, came up for hearing today, January 20, 2024.
Channels TV reports that the matter failed to proceed due to the delay by Dangote Refinery to serve its amended originating summons on the defendants.
At the resumption of the case today, the presiding judge announced the adjournment to January 30, 2024.
The refinery claims NMDPRA violated the Petroleum Industry Act by granting these licenses despite Dangote’s production exceeding Nigeria’s daily consumption.
It is also demanding N100 billion in damages for alleged favoritism and a court order to prevent further license issuance to the defendants.
Dangote VS NNPCL – How it started
Last year, Dangote Group Chairman, Aliko Dangote urged the Nigerian National Petroleum Company Limited (NNPC) and oil marketers to utilize his company’s stored petroleum products, noting that he holds one billion liters in storage at a cost.
He expressed frustration over continued imports, encouraging the NNPC and marketers to collect products from his refinery instead of purchasing Premium Motor Spirit (PMS), Automotive Gas Oil (AGO) and Jet Fuel (aviation turbine fuel) from abroad.
He said “I am expecting either NNPC or the marketers to stop importing. They should come and collect. We have what they need, and as they remove, I’ll be pumping”
“We are producers. I have a refinery. I am not in the business of retail. If I were in the business of retail, then you hold me responsible, but what I am saying is that the retailers should please come forward and pick.” Dangote said.
As a follow-up to Dangote’s outburst, some media platforms reported that NNPC Limited had stopped importing refined petroleum and was now sourcing fuel from Dangote Petroleum Refinery and other domestic refineries.
However, just days later, the NNPC denied the claim, stating that it had not halted fuel imports.
NNPC spokesperson, Olufemi Soneye clarified that the state-owned company would continue to source products from abroad when necessary.
Dangote initiates court case against NNPCL, others
The case against the NNPCL, NMDPRA and other marketers gained widespread attention in October last year across major news platforms.
The controversy intensified when Dangote’s team announced that the court case had been “overtaken by events.”
Anthony Chiejina, Chief Corporate Communications Officer, Dangote Group, revealed that the issue started in June and led to a court filing on September 6.
However, he added that the parties have since been in talks, and recent developments have rendered the matter moot.
“No fresh case filed against NNPC, others. This is an old issue that started in June and culminated in a matter being filed on September 6, 2024.
“Currently, the parties are in discussion since President Bola Tinubu’s directive on Crude Oil and Refined products sales in the Naira Initiative, which was approved by the Federal Executive Council (FEC).
“We have made tremendous progress in that regard and events have overtaken this development. No party has been served with court processes and there is no intention of doing so. We have agreed to put a halt to the proceedings.”
We understand that once the matter comes up in January 2025, we would be in a position to formally withdraw the matter in court,” Mr Chiejina said.
However, Dangote refinery’s inability to withdraw the court case as initially planned has further prolonged the matter, delaying potential resolutions and creating uncertainty for stakeholders involved.
NNPCL, NMDPRA respond
NNPCL in its response, sought to have the case struck out, calling it incompetent.
In a joint counter affidavit, oil marketers AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited argued that granting Dangote’s application would harm Nigeria’s oil sector.
They claimed Dangote Refinery hasn’t produced enough petroleum to meet the country’s daily needs and warned against monopolizing the sector.
In a counter affidavit, Idris Musa, a Senior Regulatory Officer at NMDPRA, also urged the court to dismiss Dangote’s suit, calling it misconceived and unmeritorious.
Musa argued that Dangote Refinery’s production doesn’t meet national daily petroleum product requirements and that NMDPRA issued import licenses to address product shortfalls, prioritizing companies with strong international trading records.
He also rejected the allegations of conspiracy against Dangote Refinery as baseless and unsupported.
