Import Licence: Dangote Refinery’s Suit Incompetent, NNPCL Tells Court

The Nigeria National Petroleum Corporation Limited has responded to the suit filed by Dangote Petroleum Refinery and Petrochemicals FZE to gain the sole right to supply petroleum products in the country.

The NNPCL, in its preliminary objection filed through its team of lawyers led by Mr Kehinde Ogunwumiju (SAN), described Dangote Refinery’s suit instituted to invalidate its licence to import refined petroleum products into the country as incompetent.

In its suit, Dangote Refinery, among other things, questioned the propriety of allowing the NNPCL and other key oil marketers to bring refined petroleum products into the country when it has not recorded any shortfall in its own operations.

Cited as defendants in the suit marked: FHC/ABJ/CS/1324/2024, were; the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the NNPCL and some major oil marketers that included AYM Shafa Limited, A. A. Rano Limited and Matrix Petroleum Services Limited.

According to the plaintiff (Dangote refinery), the NMDPRA acted in breach of Sections 317 (8 ) and (9) of the Petroleum Industry Act, PIA, by issuing licences for the importation of petroleum products to the defendants.

It told the court that the licences were issued to the defendants, “despite the production of AGO and Jet-A1 that exceeds the current daily consumption of petroleum products in Nigeria by the Dangote Refinery.”

The plaintiff, therefore, prayed the court to award N100 billion in damages against the NMDPRA for allegedly continuing to issue import licences to NNPCL and the other defendants for the import of petroleum products such as Automotive Gas Oil and Jet Fuel (aviation turbine fuel) into Nigeria.

Specifically, Dangote Refinery, among other things, applied for an order of injunction, restraining the first defendant (NMDPRA) from further issuing and/or renewing import licences to the second to seventh defendants or other companies for the purpose of importing petroleum products.

It further sought an order of court directing the first defendant to seal off all tank farms, storage facilities, warehouses, and stations used by the defendants for the storage of all refined petroleum products imported into Nigeria.

It said, “An order of mandatory injunction directing the first defendant to withdraw immediately all import licenses issued to the 2nd-7th defendants and other companies other than the plaintiff and other local refineries for the purpose of importing refined petroleum products into Nigeria.

“An order of injunction restraining the 1st defendant from imposing and demanding a 0.5% levy meant for off-takers of petroleum products directly and an additional 0.5% wholesale levy in favor of MDGIF or any other levy or sum against the plaintiff.”

Meanwhile, three oil marketers in the suit, AYM Shafa Limited, A. A. Rano Limited and Matrix Petroleum Services Limited, in a joint counter affidavit asked the Federal High Court in Abuja to dismiss the suit filed by Dangote Refinery.

The marketers, in the counter affidavit marked: FHC/ABJ/CS/1324/2024, and dated November 5, which is a response to an originating summon filed by Dangote Refinery, argued that granting the application of Dangote Refinery would spell doom for the country’s oil sector.

They emphasised that the plan to monopolise the oil sector is a recipe for disaster in the country.

Dangote refinery does not produce adequate petroleum products for the daily consumption of Nigerians, they argued.

They noted that the plaintiff had not placed anything before the court to prove the contrary.

They maintained that they are well qualified and entitled to be issued import licence by NMDPRA to import petroleum products in Nigeria within the meaning of Section 317 (9) of the PIA.

They also noted that they are fully qualified for the issuance of the import licences issued to them by NMDPRA, as they duly met all the legal requirements for the issuance of such import licences, before same were issued to them.

“The import licences lawfully and validly issued to the defendants did not in any way whatsoever, cripple the plaintiff’s business or its refinery.

“The import licences issued to the defendants are in line with the provisions of Petroleum Industry Act, 2021, the Federal Competition and Consumer Protection Act, 2018 and other relevant laws,” the marketers contended.

However, in its objection, the NNPCL maintained that the suit was premature, even as it challenged the jurisdiction of the court to entertain it.

In the alternative, the NNPCL urged the court to strike out its name from the suit, insisting that the plaintiff was bereft of the locus standi (legal right) to seek such reliefs against it.

“The plaintiff’s suit is premature. The plaintiff’s suit discloses no cause of action. The second defendant is not a competent party. The plaintiff’s suit is incompetent. This honourable court lacks the jurisdiction to hear this suit,” the NNPCL argued.

More so, the NNPCL contended that Dangote Refinery sued a non-existing party.

It noted that the court processes showed that NNPC, an entity that is currently non-existent, was listed as a defendant in the matter.

“This second defendant in this suit as consistently seen on the face of the plaintiff’s originating summons, the affidavit in support, and the written address, is Nigeria National Petroleum Corporation Limited, NNPC.

“A simple search on the CAC website shows that there is no entity called Nigeria National Petroleum Corporation Limited, NNPC,” it added.

It argued that the NNPCL, which filed the objection, and the NNPC are not the same, contending that the entity that was listed as a defendant in the matter is a non-juristic person.

The matter had previously being adjourned to January 20, 2025, by Justice Inyang Ekwo, for hearing and to enable the parties to explore an out-of-court settlement of the dispute, even as the plaintiff expressed its readiness to withdraw the suit.

Source:- Punchng