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NNPCL Criticize Dangote Refinery’s Suit as Incompetent, Seeks Dismissal

Published by admin on November 22nd, 2024.

NNPCL Criticize Dangote Refinery’s Suit as Incompetent, Seeks Dismissal

NNPC Grants Dangote License To Import Fuel

The Nigeria National Petroleum Corporation Limited (NNPCL) has responded to a legal challenge brought by Dangote Petroleum Refinery and Petrochemicals FZE, which seeks exclusive rights to import refined petroleum products into Nigeria. In a preliminary objection filed by NNPCL’s legal team, led by Mr. Kehinde Ogunwumiju (SAN), the corporation argued that Dangote Refinery’s suit is “incompetent” and should be dismissed.

The suit, which is registered as FHC/ABJ/CS/1324/2024, contests the legality of the NNPCL’s right to import refined petroleum products, despite the Dangote Refinery’s ability to meet the nation’s demand. Dangote Refinery has also challenged the roles of the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other major oil marketers in issuing import licenses.

In its application, Dangote Refinery claims that the NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by granting import licenses to NNPCL and other oil marketers, despite the fact that Dangote’s operations already meet domestic production needs for products such as Automotive Gas Oil (AGO) and Jet-A1.

The refinery seeks N100 billion in damages from the NMDPRA for issuing these licenses, which it argues disrupts its business. Dangote Refinery further requests an injunction to prevent the NMDPRA from granting additional import licenses, as well as a mandate for the agency to close all tank farms and facilities used by other importers of refined products.

The plaintiff also seeks to block NMDPRA from imposing additional levies on its business and demands the immediate revocation of import licenses granted to other companies.

Meanwhile, three of the oil marketers involved in the suit—AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited—have filed a joint counter-affidavit urging the court to dismiss Dangote Refinery’s claims. The marketers argue that granting the refinery’s request would undermine Nigeria’s oil sector and lead to monopolistic practices, which could be disastrous for the economy. They stress that Dangote Refinery has not demonstrated any shortfall in production to justify blocking other companies from participating in the market.

The marketers assert that they meet all legal requirements for obtaining import licenses from NMDPRA and that these licenses do not harm Dangote’s business. They contend that the licenses are in full compliance with the provisions of the PIA, the Federal Competition and Consumer Protection Act, and other relevant legislation.

In its objection, NNPCL argued that the suit was premature and lacked jurisdiction. The corporation further contended that Dangote Refinery lacked the legal standing to challenge its actions, as well as the NMDPRA’s decisions. Additionally, NNPCL pointed out a technical error in the suit, noting that the plaintiff had listed “Nigeria National Petroleum Corporation Limited” (NNPC) as a defendant—a non-existent entity, according to a search of the Corporate Affairs Commission (CAC) database.

NNPCL requested that the court strike its name from the suit, asserting that it was wrongly included and that the legal proceedings were fundamentally flawed.

The case has been adjourned to January 20, 2025, for a hearing, with the possibility of an out-of-court settlement. The plaintiff has indicated a willingness to withdraw the suit, depending on the outcome of ongoing discussions.