Court adjourns Dangote Refinery suit on import licenses to January 30

Dangote Refinery and Petrochemicals FZE, in a suit marked FHC/ABJ/CS/1324/2024, is seeking to halt the issuance of oil import licenses to some oil marketers.

Mentioned in the suit as 1st to 7th defendants are the NMDPRA, Nigerian National Petroleum Corporation Limited, AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.

In its originating summons, Dangote Refinery prayed the court to nullify the import licenses issued by the NMDPRA to the NNPCL and the five other companies for importing refined petroleum products, arguing that such actions violate Sections 317(8) and (9) of the Petroleum Industry Act (PIA).

The company claimed that these licenses should only be issued in cases of proven shortfalls in local supply and accused NMDPRA of failing to support local refineries as mandated by the PIA.

Additionally, Dangote Refinery sought N100 billion in damages against the NMDPRA for allegedly continuing to issue import licenses to the NNPCL and the other marketers.

In response, three major oil marketers—AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited—filed a counter-affidavit urging the court to dismiss Dangote Refinery’s suit.

The marketers argued that Dangote Refinery does not produce enough petroleum products to meet Nigeria’s daily consumption needs and that monopolising the sector would harm the economy. They maintained that the import licenses issued to them were lawful and in compliance with the PIA, the Federal Competition and Consumer Protection Act, and other relevant laws.

They further warned that granting Dangote Refinery exclusive control of the petroleum sector would eliminate competition, drive up prices, and destabilise the country’s fragile economy.

The marketers also cautioned that relying solely on Dangote Refinery for petroleum products could lead to supply shortages and higher costs in the event of operational disruptions at the refinery.

The Federal High Court in Abuja on Monday adjourned until January 30 to hear a suit filed by Dangote Petroleum Refinery and Petrochemicals FZE against the Nigeria Midstream and Downstream Petroleum Regulatory Authority and six others.

Justice Inyang Ekwo granted the new date following an application by the plaintiff’s counsel, George Ibrahim (SAN), who sought leave to amend the originating summons.