Dangote Petroleum Refinery and Petrochemicals has filed a lawsuit against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and several prominent oil importers in the Federal High Court in Abuja.
The case, identified as suit number FHC/ABJ/CS/1324/2024, seeks ₦100 billion in damages from NMDPRA for allegedly continuing to issue import licenses for refined products, including Automotive Gas Oil (AGO) and Jet-A1 aviation fuel.
The refinery argues that its production capabilities have surpassed domestic consumption needs, thus making further imports unnecessary. In contrast, oil marketers have voiced their objections, asserting that the market is deregulated and that importers are free to source products either from the ₦20 billion Lekki-based refinery or through their own channels.
In its legal action, Dangote is also requesting the revocation of import licenses granted to the Nigerian National Petroleum Corporation Limited (NNPCL), Matrix Petroleum Services Limited, A.A. Rano Limited, and four other companies. The refinery claims that these imports have adversely affected its business by saturating the market with products that it is fully capable of supplying.
According to Dangote, the NMDPRA has violated sections of the Petroleum Industry Act by issuing these licenses without evidence of product shortages. The refinery accuses the authority of failing to fulfill its mandate to promote local refining initiatives.
An affidavit from Ahmed Hashem, Dangote’s General Manager of Government and Strategic Relations, details the disruption caused by the importation of AGO and Jet-A1, stating that the refinery’s products are largely unsold due to market flooding. Hashem emphasized that the company’s operations and investments are at significant risk without judicial intervention.
Moreover, the Dangote refinery has raised concerns over a proposed 0.5% levy on wholesale buyers and another 0.5% levy for the Midstream and Downstream Gas Infrastructure Fund, arguing that such measures contradict the principles of free zones designed to encourage competition and attract investments.
The lawsuit claims that international oil companies and local defendants are colluding to undermine Nigeria’s domestic refining capabilities. The refinery alleges they are attempting to sabotage its operations through negative media campaigns.
In its court filing, Dangote seeks several declarations, including confirmation of its exemption from all federal, state, and local taxes as outlined in the Nigerian Export Processing Zone Act and the Companies Income Tax Act. The refinery has requested that the court prevent NMDPRA from issuing further import licenses to the implicated companies and to close their storage facilities.
At a recent court hearing, Dangote’s counsel, George Ibrahim SAN, informed Justice Inyang Ekwo that both parties are exploring potential settlement options. The case has been adjourned until January 20, 2025, for a status update on negotiations.
In response, NMDPRA spokesperson George Ene-Ita stated that the authority has not been notified of the lawsuit and has yet to receive any summons. Meanwhile, NNPCL spokesperson Femi Soneye provided a non-verbal acknowledgment when approached for comment.
Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria, noted that the NMDPRA is legally empowered to issue fuel import licenses to qualified companies under the Petroleum Industry Act. He emphasized the importance of a competitive market for ensuring product availability at affordable prices.
Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, remarked on the market’s current openness following the removal of subsidies, asserting that marketers are now free to import as needed.
As the situation unfolds, sources within Dangote refinery have mentioned that the case may no longer be active, suggesting that developments have rendered the litigation moot. One insider indicated that the matter has been misrepresented as a new issue.
