Dangote Refinery Sues to Block NNPCL’s Fuel Imports, Demands N100 Billion in Shocking Legal Showdown!
Dangote Refinery has filed a lawsuit at the Federal High Court in Abuja, seeking the annulment of import licenses issued to the Nigerian National Petroleum Corporation Limited (NNPCL), Matrix Petroleum Services Limited, A.A. Rano, and four other companies. The refinery also demands N100 billion in damages from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for allegedly continuing to grant these import licenses, despite the refinery’s capacity to meet Nigeria’s fuel consumption needs.
In case number FHC/ABJ/CS/1324/2024, Dangote Refinery argues that the NMDPRA has been improperly issuing import licenses for petroleum products such as Automotive Gas Oil (AGO) and Jet-A1 fuel, even though the refinery produces enough to exceed the country’s daily consumption.
The companies targeted in the suit include
- NNPCL,
- Aym Shafa Limited,
- A.A. Rano Limited,
- T. Time Petroleum Limited,
- 2015 Petroleum Limited, and
- Matrix Petroleum Services Limited.
Dangote’s legal representative, Senior Advocate of Nigeria (SAN) Ogwu James Onoja, contends that the NMDPRA is violating Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by granting these licenses, which are meant to be issued only in the case of a shortage of petroleum products.
Onoja stressed that the NMDPRA’s actions are undermining the government’s support for local refineries, like Dangote Refinery, as mandated by the PIA. According to the refinery, its operations—bolstered by billions of dollars in investments—are being significantly hindered by the continued issuance of import licenses to other companies.
Furthermore, Dangote Refinery claims that the NMDPRA has threatened to impose a 0.5% levy on wholesalers and off-takers, as well as another 0.5% levy on wholesale transactions directed toward the Midstream and Downstream Gas Infrastructure Fund (MDGIF). Dangote argues that these levies, as communicated in a letter dated June 10, 2024, contradict statutory regulations.
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The lawsuit highlights the growing tension between Dangote Refinery and regulatory authorities over the future of Nigeria’s fuel supply chain, with implications for local production and international imports.
