NPPCL Asks Court to Strike Out Dangote Refinery’s Over Import License to Marketers

The Nigerian National Petroleum Company Limited (NNPCL) has responded to a lawsuit by Dangote Petroleum Refinery and Petrochemicals FZE saying it is “incompetent.”

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

In its suit, Dangote Refinery, 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.

In the suit marked FHC/ABJ/CS/1324/2024, Dangote refinery claims that the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) violated the Petroleum Industry Act by issuing licenses despite the refinery’s capacity to meet local demand.

The company claims that the NMDPRA breaches provisions of the Petroleum Industry Act, PIA, specifically Sections 317(8) and (9).

They are seeking N100 billion in damages and an order to stop NMDPRA from issuing further licenses. The company argued that the continued issuance of licenses undermines the domestic refinery’s potential and calls for a halt on the importation of refined products.

However, 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.

In the court affidavit, the marketers argued that granting the application of Dangote Refinery would spell doom for the country’s oil sector. They argued that Dangote Refinery does not produce enough petroleum products for Nigeria’s daily consumption.

In its objection, NNPCL urged the court to strike out its name from the suit. “The plaintiff’s suit is premature. The plaintiff’s suit discloses no cause of action. The 2nd defendant is not a competent party. The plaintiff’s suit is incompetent. This honorable court lacks the jurisdiction to hear this suit”, NNPCL said.

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