Dangote Refinery asks court to invalidate import licenses of NNPCL, others in N100 billion suit

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

The lawsuit revolves around the importation of refined petroleum products that Dangote Refinery claims are already being sufficiently produced domestically, without any shortages.

In addition to requesting the annulment of the import licenses, Dangote Refinery is demanding N100 billion in damages from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The refinery alleges that the NMDPRA unlawfully continues to issue import licenses for products such as diesel and jet fuel to NNPCL, Matrix Energy, and others, despite Dangote’s production capacity being sufficient to meet Nigeria’s daily consumption needs.

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 violated sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing import licenses without demonstrating a shortfall in domestic supply. The refinery contends that such licenses should only be issued when there is a clear need for imported products.

Dangote Refinery’s affidavit states that these import licenses have harmed its business, which has invested billions of dollars into domestic production, resulting in reduced patronage for its products. Additionally, the company claims that NMDPRA’s threat to impose a 0.5% levy on Dangote’s wholesale transactions contradicts legal provisions that exempt free zone transactions from such levies. It argues that free zones are meant to promote competition and attract foreign investment.