Dangote Petroleum Refinery and Petrochemicals FZE, on Monday, January 20, 2025, failed to withdraw its lawsuit asking the Federal High Court in Abuja to void import licenses issued to the Nigerian National Petroleum Corporation Limited (NNPCL), Matrix Petroleum Services Limited, A.A. Rano Limited, and four other companies for importing refined petroleum products, which Dangote Refinery claims are already being produced domestically without shortfalls.
When the case was called before Justice Inyang Ekwo of the Federal High Court in Abuja, it was adjourned to January 30, 2025, following Dangote Refinery’s inability to serve its amended suit on the parties.
In suit number FHC/ABJ/CS/1324/2024, Dangote Refinery is seeking N100bn in damages against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for allegedly continuing to issue import licenses to NNPCL, Matrix, and other companies for importing petroleum products such as Automotive Gas Oil (AGO) and Jet Fuel (aviation turbine fuel) into Nigeria.
The suit claims this practice persists “despite the production of AGO and Jet-A1 that exceeds the current daily consumption of petroleum products in Nigeria by the Dangote Refinery.”
The defendants in the case include 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).
The plaintiff’s lawyer, Ogwu James Onoja, SAN, had argued according to reports retrieved by OwelekeTV News that NMDPRA allegedly violated Sections 317(8) and (9) of the Petroleum Industry Act by issuing licenses for the importation of petroleum products, which should only be granted when there is a proven shortfall in supply.
Previous Proceeding
At the October 2024 proceedings, George Ibrahim, SAN, counsel for the plaintiff, informed the court that settlement discussions were ongoing between the parties.
The court then adjourned to January 20 for the report.
Following the lawsuit’s public disclosure, Dangote Group issued a statement on October 21, 2024, describing the matter as “an old issue.”
Anthony Chiejina, the group’s communications officer, clarified that Dangote Refinery planned to withdraw the suit by January 2025.
“This is an old issue that began in June and culminated in a matter being filed on September 6, 2024,” the statement read.
“Currently, the parties are in discussion following President Bola Tinubu’s directive on crude oil and refined products sales in Naira, approved by the Federal Executive Council (FEC). We have made significant progress, and events have since overtaken this development. No party has been served with court processes, and there is no intention to do so. We expect to formally withdraw the matter in court in January 2025.”
Developments before Monday’s proceedings
Days after the initial adjournment, three oil companies—Matrix Petroleum Services Limited, A.A. Rano Limited, and AYM Shafa Limited—filed a request urging the court to dismiss the suit.
They argued that only the NMDPRA and NNPCL are statutorily empowered to determine petroleum product shortfalls in Nigeria, not Dangote Refinery.
In their counter-affidavit dated November 5, 2024, the companies sought an order prohibiting NMDPRA from reviewing or withdrawing their import licenses.
Ahmed Raji, SAN, counsel for the oil companies, argued that Section 317(9) of the Petroleum Industry Act (PIA) vests the authority to determine petroleum product shortfalls solely with NMDPRA (1st Defendant) in conjunction with NNPCL (2nd Defendant).
He urged the court to rely on this provision and refuse to void the import licenses.
Meanwhile, NNPCL’s counsel, Kehinde Ogunwumiju, SAN, filed a preliminary objection, asserting that the plaintiff erroneously sued “Nigeria National Petroleum Corporation,” a non-existent entity, instead of the correctly registered “Nigerian National Petroleum Company Limited.”
Consequently, Dangote Refinery applied for leave to amend the suit to correct the name of the second defendant.
What Happened court
At the resumed hearing on Monday, George Ibrahim, SAN, informed the court that neither settlement discussions nor service of the amended suit had progressed.
He explained that an error in the original application required the originating summons to be amended.
Counsel to NMDPRA, Mathew Bukar, SAN, alongside Ahmed Raji, SAN (representing AYM Shafa, A.A. Rano, and Matrix), stated that they had not yet been served with the plaintiff’s amended application.
Ademola Abimbola, counsel for NNPCL, noted that he only received the application shortly before court proceedings and needed time to respond.
Justice Ekwo admonished the plaintiff’s counsel, saying,
“You have not been able to position this matter to be heard, and that is the cause of the adjournment.”
The court then adjourned the case to January 30, 2025, to hear the motion for amendment and further exchange of processes.
What you should know
Aliko Dangote recently announced his willingness to sell his multibillion-dollar refinery to NNPC Limited amid escalating disputes with regulators and equity partners.
Dangote had previously accused other importers of bringing substandard petroleum products into Nigeria.
Nairametrics reported that the federal government subsequently allowed marketers to purchase petroleum products directly from Dangote Refinery, following NNPC’s decision to withdraw as a middleman between the refinery and marketers.
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