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Dangote Petroleum Refinery and Petrochemicals FZE filed a lawsuit against the Nigerian National Petroleum Company Limited (NNPCL), the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and five oil marketing companies over an oil import license dispute. The Federal High Court in Abuja has postponed the hearing until November 5, 2025.
According to reports, Justice Mohammed Umar, who was supposedly seated in the court’s Enugu Division, was not present, thus the case, which had been scheduled for Wednesday, could not move on.
On July 10, Justice Umar ordered the parties involved in the lawsuit to streamline their procedures and instructed that defendants who were not present receive notice of the hearing. The matter had been heard by Justice Inyang Ekwo before being transferred to Umar, necessitating a fresh start.
Dangote Refinery, through its attorney Ogwu Onoja (SAN), is requesting that the court revoke the petroleum import licenses that the NMDPRA granted to NNPCL and five marketers: AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.
The refinery claimed that Sections 317(8) and (9) of the Petroleum Industry Act (PIA), which only allow such approvals in circumstances of verifiable product shortfalls, were breached by the licenses’ issuance.
Dangote also demanded ₦100 billion in damages against the NMDPRA for allegedly hurting the local refining industry and continuing to approve imports in violation of the PIA.
In a preliminary objection submitted by Afe Babalola & Co., the NNPCL requested that the lawsuit be dismissed, citing its incompetence and prematurity.
According to a law clerk named Isiaka Popoola, the corporation stated in an affidavit that the plaintiff sued “Nigeria National Petroleum Corporation Limited (NNPC),” an imaginary company.
Popoola added that the court lacked jurisdiction over the misnamed defendant and that “a simple search on the CAC website shows that there is no entity called ‘Nigeria National Petroleum Corporation Limited (NNPC).”
NNPCL requested the court to dismiss the matter, claiming that the refinery had not disclosed any cause of action against it.
Idris Musa, a senior regulatory official with the NMDPRA, stated in a counteraffidavit that Dangote was not qualified for any of the requested reliefs.
Musa insisted that the refinery’s output was still significantly less than what the country needed. He went on to say that the NMDPRA was authorized by Section 317(9) of the PIA to grant import licenses in order to fill shortages, maintain competition, and avoid unhealthy monopolies in the downstream industry.
As “baseless and unsupported by facts or evidence,” he rejected Dangote’s allegations of a plot.
AYM Shafa, A.A. Rano, and Matrix Petroleum Services, the oil marketers who joined the lawsuit, objected to Dangote’s requests, claiming that fulfilling them would “spell doom” for the sector.
The marketers contended that the refinery had not yet satisfied Nigeria’s daily consumption needs in their joint counteraffidavit, which was submitted on November 5, 2024. They insisted that there was no evidence in front of the court to demonstrate otherwise.
They claimed that Dangote’s stance would harm Nigerians since it was an attempt to monopolize the petroleum industry.
The NNPCL had already filed a preliminary objection, but Justice Ekwo dismissed it on March 18, ruling that the application was premature and inept.
He decided that NNPCL should have raised objections after submitting a counter-affidavit as a defense.
Additionally, Ekwo dismissed the Federal Competition and Consumer Protection Commission’s (FCCPC) motion for joinder, calling the organization a “meddlesome interloper,” while granting Dangote’s request to modify its originating process to accurately reflect the name of the NNPCL.
The Federal High Court will hear arguments from all parties on the legitimacy of the import permits, the extent of the PIA, and Dangote’s claims for damages against the regulatory body on November 5.
