N100bn Legal Battle: Dangote Refinery Moves to Halt Issuance of New Petroleum Import Licenses
- Dangote Refinery has dragged the NMDPRA, NNPCL and five petroleum marketers to court in a N100 billion suit, seeking to halt the issuance of petroleum import licenses
- The marketers insisted in their response that the refinery alone cannot produce sufficient petroleum products for the Nigerian market
- The case was adjourned for January 30, 2025, for a resumed hearing, to allow the plaintiff's counsel to amend the originating summons
CHECK OUT! Earn more in 2025. Join a FREE webinar on creating a client-winning copywriting portfolio!
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
A Federal High Court sitting in Abuja on Monday, January 20, adjourned the hearing of the N100 billion suit filed by Dangote Petroleum Refinery and Petrochemicals FZE until Thursday, January 30, 2025.
The suit, marked FHC/ABJ/CS/1324/2024, is filed against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and six others.
Source: Getty Images
The suit prays the court to bar the NMDPRA from issuing new petroleum importation licenses in Nigeria to some oil marketers.
The oil marketers are the 2nd to 7th defendants mentioned in the case - Nigerian National Petroleum Corporation Limited, AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.
Justice Inyang Ekwo granted the new date in response to an application by the plaintiff’s counsel, George Ibrahim (SAN), who sought leave to amend the originating summons.
Suit to stop NMDPRA from issuing licenses
In its originating summons, Dangote Refinery urged the court to revoke the petroleum import licenses granted by the NMDPRA to NNPCL and five other companies, as it breaches Sections 317(8) and (9) of the Petroleum Industry Act (PIA).
According to the suit, such licenses should only be issued when there is clear evidence of a shortage in the local supply of refined petroleum products. The company also accused NMDPRA of neglecting its obligation under the PIA to support local refining efforts.
Dangote Refinery is demanding N100 billion in damages from the NMDPRA, alleging that the agency continues to unlawfully grant import licenses to NNPCL and other marketers.
Oil marketers respond with countersuit
Three of the marketers mentioned in the case – A.A. Rano Limited, AYM Shafa Limited, and Matrix Petroleum Services Limited—filed a countersuit praying the court to dismiss Dangote Refinery’s suit.
According to them, the Dangote Refinery is not producing enough to meet the demand for the product in Nigeria, and it would be to the detriment of Nigerians to have the refinery monopolize the Nigerian market.
Their suit insists that petroleum import licenses issued to them is in line with the Federal Competition and Consumer Protection (FCCPC) Act, and other laws in the country.
They also cautioned that giving Dangote Refinery exclusive dominance over the petroleum sector could stifle competition, inflate prices, and harm Nigeria’s already fragile economy.
The marketers further emphasized that relying entirely on Dangote Refinery for petroleum supplies could result in shortages and increased prices if the refinery experienced any operational disruptions.
Recall that a recent Legit.ng report showed that Dangote Refinery is exporting its excess petroleum product to other West African countries.
Case adjourned till January 30
During Monday’s hearing, the plaintiff’s counsel, George Ibrahim (SAN), informed the court that the case was scheduled for a report on settlement or service. However, he disclosed that the amended originating summons had not been served on the defendants.
He explained that discussions on the settlement could not progress because a motion had been filed to amend the originating summons due to errors in the initial application.
The defendants’ counsel also confirmed they had not received the amended summons and requested proper service before the case could move forward.
NNPCL counsel Ademola Abimbola noted that his client only received the application shortly before the court session on Monday morning, which needed to be amended to reflect the NNPCL’s registered name.
Dangote Refinery increases fuel prices
In a recent development, Dangote Refinery announced an increase in the bulk price of fuel to marketers.
According to the announcement, the price would increase from N899.5 to N955 per litre for purchases ranging from 2 million litres and 4.99 million litres, while orders above 5 million litres would sell at N950 per litre.
The company noted that the increase was necessitated by rising crude oil prices globally, as crude oil is the major raw material used in production.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
