Dangote Petroleum Refinery and Petrochemicals has filed a lawsuit against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and several major oil importers at the Federal High Court in Abuja.
In case number FHC/ABJ/CS/1324/2024, Dangote Refinery is seeking N100bn in damages from NMDPRA for continuing to issue import licences for refined products like Automotive Gas Oil (AGO) and Jet-A1, despite the refinery’s production exceeding domestic consumption.
The refinery also requested the cancellation of licences granted to the Nigerian National Petroleum Corporation Limited (NNPCL), Matrix Petroleum Services Limited, A.A. Rano Limited, and four others, arguing that these imports undermine its operations by flooding the market with products it already produces.
Dangote claims NMDPRA violated the Petroleum Industry Act (PIA) by issuing these licences without evidence of product shortages, accusing the regulator of failing to promote local refineries.
According to an affidavit by Ahmed Hashem, the refinery’s General Manager, Government and Strategic Relations, the importation of these products has disrupted Dangote’s business, leaving much of its production unsold. The affidavit states that “the plaintiff is severely distressed, and its business is in jeopardy unless the court intervenes.”
Dangote also challenged a 0.5% levy imposed on wholesale buyers and off-takers for the Midstream and Downstream Gas Infrastructure Fund, arguing that it contradicts regulations governing free zones, which aim to foster competition and attract foreign investments.
The refinery further accused international oil companies of conspiring with the defendants to sabotage Nigeria’s indigenous refining efforts and sought a court declaration exempting it from federal, state, and local taxes, in line with the Nigerian Export Processing Zone Act and other relevant laws.
During a court hearing, Dangote’s counsel, George Ibrahim SAN, informed Justice Inyang Ekwo that settlement discussions were ongoing, and the case was adjourned until January 20, 2025, for a report on the settlement or further court proceedings.
When contacted, NMDPRA spokesperson George Ene-Ita stated that the authority had not yet been served with a summons. Meanwhile, NNPCL spokesperson Femi Soneye responded with a WhatsApp sticker that read “Eziokwu” when asked for a comment.
The President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, noted that the PIA gives NMDPRA the legal mandate to issue import licences to qualified companies. He added that the lawsuit would become subjudice, but the law allows companies to import fuel as long as they meet the requirements.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, said he was unaware of any lawsuit against marketers by Dangote, but reiterated that the market is now open following subsidy removal, allowing for free trade based on a “willing buyer, willing seller” principle.
