*Denies Filing Fresh Case
*Says Will Withdraw Suit At Next Hearing In January
IN what many Nigerians view as a quest for monopoly, Dangote Petroleum Refinery and Petrochemicals has filed a lawsuit at the Federal High Court in Abuja, urging the court to void import licenses granted to the Nigerian National Petroleum Company Limited (NNPCL), Matrix Petroleum Services Limited, AA Rano Limited and four other companies.
Defendants in the case include NMDPRA, NNPCL, A.Y.M Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.
The case centred on the importation of refined petroleum products that Dangote Refinery claimed were already being produced domestically without shortages.
In the suit, Dangote Refinery is also demanding ₦100billion in damages from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the government agencies in charge of regulation supplies, alleging that it has unlawfully continued to issue import licenses to the respondents for products, such as diesel and jet fuel, despite its production capacity exceeding Nigeria’s current daily consumption of these products.
In its originating summons, Dangote argued that the NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing import licenses under circumstances where no product shortfall exists, contending that such licenses should only be granted when there is a demonstrated need for imported products.
The affidavit stated that the import licenses issued to other companies were detrimental to Dangote’s business, which has invested billions of dollars into production, claiming that these actions had led to a lack of patronage for its products.
The refinery further alleged that NMDPRA had threatened to impose a 0.5 per cent levy on its wholesale transactions, which contravened statutory provisions that restrict such levies on transactions within free zones, arguing that the establishment of free zones aims to encourage competition and attract foreign investment.
Its legal team asserted that the situation necessitated judicial intervention to prevent ongoing violations of statutory provisions favouring certain entities over others.
The refinery is seeking an injunction to prevent the NMDPRA from issuing or renewing import licenses for the defendants; general damages of N100billion against NMDPRA; an order directing the NMDPRA to seal off all facilities used by the defendants for storing imported refined petroleum products.
Other reliefs sought include a declaration that as a registered free-zone enterprise, Dangote is exempt from all federal, state and local government taxes, levies, and rates; a declaration that imposing additional levies on Dangote is contrary to various legislative acts and an order directing the NMDPRA to withdraw all import licenses issued to the defendants.
At proceeding on Monday, October 21, Dangote’s legal team informed the court, presided over by Justice Inyang Ekwo, of ongoing discussions between the parties to reach a settlement and requested an adjournment to facilitate these negotiations.
Justice Ekwo subsequently adjourned the case until January 20, next year, for the report of the negotiation and settlement process.
Following public criticism of the suit as seeking to create a monopoly, the company has denied filing a fresh charge against NNPCL, insisting it was an old suit that came up for hearing.
In a statement on Monday, the group’s Chief Branding and Communications Officer, Anthony Chiejina, explained that the lawsuit has been in court since June and Dangote refinery planned to withdraw the case in January next year.
He stated: “This is an old issue that started in June and culminated in a matter being filed on September 6.
“Currently, the parties are in discussion since President Bola Tinubu’s directive on crude oil and refined products sales in Naira initiative, which was approved by the Federal Executive Council (FEC).”
The refinery said it has made tremendous progress in that regard and events have overtaken the development, adding: “No party has been served with court processes and there is no intention of doing so. We have agreed to put a halt to the proceedings.
“It is important to stress that no orders have been made and there are no adverse effects on any party. We understand that once the matter comes up January 2025, we would be in a position to formally withdraw the matter in court.”
Dangote Refinery had in the suit, marked: FHC/ABJ/CS/1324/2024, and filed by Ogwu Onoja (SAN) sued NMDPRA and NNPCL as 1st and 2nd defendants, as well as Aym Shafa Limited; A. A. Rano Limited; T. Time Petroleum Limited; 2015 Petroleum Limited and Matrix Petroleum Services Limited as 3rd to 7th defendants, respectively.
