Dangote Refinery is taking legal action against NMDPRA and several oil companies, seeking N100 billion and an annulment of petroleum import licences. The refinery claims the actions of the NMDPRA are hindering local production and violating the Petroleum Industry Act (PIA).
In a landmark legal move, Dangote Refinery has filed a lawsuit at the Federal High Court in Abuja, seeking to annul the import licences granted to the Nigerian National Petroleum Company Limited (NNPCL), Matrix Petroleum Services Limited, A. A. Rano, and other firms. The refinery is also pursuing N100 billion in damages from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), accusing the agency of undermining local production through the continuous issuance of import licences.
The case, marked FHC/ABJ/CS/1324/2024, alleges that the NMDPRA has been unlawfully granting licences for the importation of petroleum products, including Automotive Gas Oil (AGO) and Jet-A1 fuel, despite Dangote Refinery’s capacity to meet Nigeria’s daily consumption needs.
Dangote’s lawyer, Ogwu James Onoja (SAN), argued that NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing these licences without a shortage in the local supply. The refinery contends that such licences should only be granted in exceptional cases where local production is insufficient to meet demand.
According to the refinery, the import licences issued to NNPCL, Aym Shafa Limited, T. Time Petroleum Limited, and others are impeding its operations, despite the substantial financial investments made in the refinery’s production capabilities. The lawsuit further claims that NMDPRA is neglecting its duty to support local refineries, as stipulated by the PIA.
Additionally, the refinery expressed concern over the 0.5% levy threatened by NMDPRA, applicable to wholesalers and off-takers, which Dangote Refinery argues contradicts the legal framework regulating such levies.
The legal battle has sparked widespread interest, with industry insiders eager to see how the court’s decision could reshape the petroleum import landscape in Nigeria.
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