By Ayomide Otitoju
Dangote Petroleum Refinery and Petrochemicals has initiated legal action against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and several oil marketers, demanding N100 billion in damages. The suit, filed at the Federal High Court in Abuja (FHC/ABJ/CS/1324/2024), challenges the continued issuance of import licences for refined petroleum products, including Automotive Gas Oil (AGO) and Jet-A1 (aviation fuel), despite sufficient domestic production.
Dangote Refinery claims its output exceeds national demand, making imports redundant and harmful to its operations. The company is also seeking the cancellation of licences issued to the Nigerian National Petroleum Corporation Limited (NNPCL) and major oil importers like Matrix Petroleum Services Limited and A. A. Rano Limited, accusing them of flooding the market with products that undermine its operations.
In an affidavit submitted by Ahmed Hashem, General Manager, Government and Strategic Relations at Dangote Refinery, the company argued that NMDPRA’s actions violated sections of the Petroleum Industry Act (PIA), which mandates that licences should only be issued in the event of a domestic product shortfall. Dangote alleges that the regulator has failed in its duty to promote local refineries, further claiming that the imports have left its products unsold and caused significant business disruptions.
The refinery also challenged the imposition of a 0.5% levy on wholesale buyers and another 0.5% levy for the Midstream and Downstream Gas Infrastructure Fund, arguing that these charges contradict regulations governing free zones, which are designed to foster competition and attract foreign investment.
As part of the suit, Dangote seeks a court order voiding the import licences granted to the defendants and directing NMDPRA to seal off their storage facilities and revoke all existing licences.
During a hearing on Monday, Dangote’s legal representative, George Ibrahim SAN, informed the court that the parties were exploring a possible settlement. Justice Inyang Ekwo adjourned the case to January 20, 2025, for a report on the settlement discussions or the service of summons.
In response, NMDPRA spokesperson George Ene-Ita stated that the regulator had not been served with any summons regarding the lawsuit. Similarly, NNPCL declined to comment on the matter.
Meanwhile, industry stakeholders have expressed surprise over the lawsuit, noting that the Petroleum Industry Act allows NMDPRA to issue fuel import licences to qualified companies. The President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, emphasized that the market is deregulated, allowing marketers to import products as needed.
Dangote Refinery has since indicated its intention to withdraw the lawsuit. In a statement on Monday, the Group’s Chief Branding and Communications Officer, Anthony Chiejina, explained that the case originated from issues dating back to June 2024 and had been overtaken by recent developments, including President Bola Tinubu’s directive on selling crude oil and refined products in naira.
Chiejina confirmed that the parties are currently in discussions and expect to formally withdraw the lawsuit in January 2025.
