“Void import licenses granted to NNPCL, AA Rano, others” — Dangote refinery begs court

Dangote Petroleum Refinery and Petrochemicals has officially filed a lawsuit at the Federal High Court in Abuja, seeking the annulment of import licenses that were granted to several companies, including the Nigerian National Petroleum Company Limited (NNPCL), Matrix Petroleum Services Limited, AA Rano Limited, and four other entities.

The case revolves around the importation of refined petroleum products, which Dangote Refinery argues are already being produced domestically in sufficient quantities to meet demand.

The company contends that allowing imports of these products not only undermines local production efforts but could also lead to market distortions and increased prices for consumers.

Dangote Refinery emphasizes that the current domestic production capacity is capable of fulfilling the needs of the Nigerian market, thereby questioning the necessity of granting import licenses to other companies.

In the lawsuit, Dangote Refinery is also seeking ₦100 billion in damages from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The refinery claims that the issuance of import licenses has caused significant financial harm and disruption to its operations.

The refinery alleged that the NMDPRA has unlawfully continued to issue import licenses to the NNPCL, Matrix Energy, and others for products like diesel and jet fuel, despite Dangote’s production capacity exceeding Nigeria’s current daily consumption of these products.

The 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.

In its originating summons, Dangote argued that the NMDPRA has violated sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing import licenses under circumstances where no product shortfall exists.

The refinery contended that such licenses should only be granted when there is a demonstrated need for imported products.

The affidavit from Dangote Refinery Group stated that the import licenses issued to other companies are detrimental to Dangote’s business, which has invested billions of dollars into production. The company claimed that these actions have resulted in a lack of patronage for Dangote’s products.

The group alleged that NMDPRA has threatened to impose a 0.5% levy on Dangote’s 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.

Dangote’s legal team asserted that the situation necessitated judicial intervention to prevent ongoing violations of statutory provisions favouring certain entities over others.

The refinery sought an injunction to prevent the NMDPRA from issuing or renewing import licenses for the defendants.

Additional reliefs sought include general damages of ₦100 billion against NMDPRA, an order directing the NMDPRA to seal off all facilities used by the defendants for storing imported refined petroleum products, 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, an order directing the NMDPRA to withdraw all import licenses issued to the defendants.

At Monday’s proceeding, Dangote’s legal team informed the court of ongoing discussions between the parties aimed at reaching a settlement. He requested an adjournment to facilitate these negotiations.

The presiding judge, Justice Inyang Ekwo subsequently adjourned the case to January 20, 2025, for the report.