By Ayomide Otitoju
The Nigeria National Petroleum Corporation Limited (NNPCL) has filed a preliminary objection to a lawsuit by Dangote Petroleum Refinery and Petrochemicals FZE, which seeks to secure exclusive rights to supply petroleum products in Nigeria.
Represented by a legal team led by Mr. Kehinde Ogunwumiju (SAN), the NNPCL described the suit as premature and lacking in competence. It argued that Dangote Refinery had no legal standing to challenge its licence to import refined petroleum products, asserting that the suit failed to establish a cause of action.
Dangote Refinery’s lawsuit, filed against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), NNPCL, and several major oil marketers, including AYM Shafa Limited and Matrix Petroleum Services Limited, claims that the NMDPRA violated provisions of the Petroleum Industry Act (PIA). The plaintiff alleges that licences were issued for petroleum imports despite its capacity to meet domestic demand for products like Automotive Gas Oil (AGO) and Jet-A1 fuel.
The refinery is seeking ₦100 billion in damages and an injunction to prevent the issuance of further import licences to competitors. It also demands the closure of storage facilities used by other marketers for imported products and the withdrawal of existing licences.
In their defense, the oil marketers argued that granting Dangote Refinery exclusive import rights would destabilize the petroleum sector, asserting that the plaintiff does not produce sufficient products to meet Nigeria’s daily consumption. They maintained that their licences were lawfully issued in line with the PIA and other regulations.
NNPCL, in its objection, also highlighted a technical error in the lawsuit, noting that Dangote Refinery listed “Nigeria National Petroleum Corporation Limited” as a defendant, an entity it says does not exist.
Justice Inyang Ekwo of the Federal High Court, Abuja, adjourned the case to January 20, 2025, to allow parties to explore an out-of-court settlement, with Dangote Refinery indicating its readiness to withdraw the suit.
