Dangote Petroleum Refinery and Petrochemicals FZE have asked the Federal High Court in Abuja to void import licences issued to NNPC Limited (NNPCL), Matrix Petroleum Services Limited, A. A. Rano Limited, and four other companies for the purpose of importing refined petroleum products that are already being produced by Dangote without shortfalls.
In a suit, Dangote Refinery is also seeking N100 billion in damages against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for allegedly continuing to issue import licenses to NNPCL, Matrix Energy, and other companies for importing petroleum products such as Automotive Gas Oil (AGO) and Jet Fuel (aviation turbine fuel) into Nigeria, “despite the production of AGO and Jet-A1 that exceeds the current daily consumption of petroleum products in Nigeria by the Dangote Refinery”.
Accorrding to Nairametrics, joined as defendants in the case are NMDPRA, NNPCL, Aym Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited (1st to 7th defendants).
In its originating summons dated 6 September 2024, the plaintiff’s lawyer, Ogwu James Onoja, SAN, asked the court to declare that NMDPRA is allegedly in violation of Sections 317(8) and (9) of the Petroleum Industry Act by issuing licenses for the importation of petroleum products.
He stated that such licenses should only be issued in circumstances where there is a petroleum product shortfall.
He also urged the court to declare that NMDPRA is in violation of its statutory responsibilities under the Petroleum Industry Act (PIA) for not encouraging local refineries such as Dangote Refinery.
In an affidavit deposed by Ahmed Hashem, the Group General Manager of Government and Strategic Relations at Dangote Refinery, he submitted that the import licenses granted to other companies by NMDPRA for the importation of AGO and Jet-A1 are crippling the plaintiff’s business, to which it has committed substantial financial resources in billions of United States dollars.
He noted that the plaintiff’s products are largely left unpatronized due to the alleged actions of NMDPRA.
He stated that NMDPRA has threatened to impose and demand a 0.5 per cent levy on the plaintiff on wholesales and off-takers, as well as another 0.5% levy on wholesales to the Midstream and Downstream Gas Infrastructure Fund (MDGIF) via a letter dated 10 June 2024, contrary to statutory provisions that limit the implementation of levies on transactions within Free Zones.
He emphasized that the foundational purpose of establishing Free Zones is to foster competition, attract foreign investment, and create tax havens.
He further stated that there is an alleged grand conspiracy and concerted effort by International Oil Companies and interests, in conjunction with the defendants, who are unhappy that Nigeria has an indigenous refinery ready to solve the lingering energy crisis and save the economy.
“The intervention of the Honourable Court has become necessary in order to stem the incessant violation of statutory provisions by the first defendant in favor of other entities such as the second to seventh defendants”, the plaintiff stated.
The refinery’s legal team stated that the plaintiff is greatly distressed, and its investments risk being jeopardised unless the court intervenes.
He sought an order of injunction restraining the first defendant from further issuing and/or renewing import licenses to the 2nd to 7th defendants or other companies for the purpose of importing petroleum products.
In addition to a restraining order against the import licenses of the affected companies, the plaintiff sought “General damages in the sum of N100 billion against the first defendant (NMDPRA) and 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”.
