Dangote Refinery’s fight with NNPCL, others, shifts to courtroom

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Dangote Refinery has approached the Federal High Court, in Abuja, seeking to annul the import licences granted to the Nigerian National Petroleum Company Limited, NNPCL, Matrix Petroleum Services Limited, and A. A. Rano.

Dangote, in the suit, informed the court that the NNPCL and the other companies obtained the licence to import petroleum products “despite the production of AGO and Jet-A1 that exceeds the current daily consumption of petroleum products in Nigeria by the Dangote Refinery.”

Dangote Refinery’s case is marked FHC/ABJ/CS/1324/2024, which also seeks N100 billion in damages from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA.

Furthermore, Dangote Refinery alleged that the NMDPRA had been improperly granting import licences to the companies for the importation of petroleum products, including AGO and jet fuel, into Nigeria.

Named as defendants are NMDPRA, NNPCL, A.Y. Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.

Lawyer to Dangote Refinery, Ogwu James Onoja, SAN, wanted the court to determine that the NMDPRA was purportedly contravening Sections 317(8) and (9) of the Petroleum Industry Act, PIA, by granting licences for the importation of petroleum products.

Dangote Refinery said that such licences ought only to be granted to the firms solely in situations where there is a shortage of petroleum products.

The refinery demanded that the court recognise that NMDPRA is failing to fulfil its mandated duties under the PIA by not supporting local refineries like Dangote Refinery.

It expressed worries that the import licences issued to other companies by NMDPRA for the importation of AGO and Jet-A1 are severely hindering the plaintiff’s operations, in which it has invested substantial financial resources amounting to billions of US dollars.

The Dangote Refinery said it observed that its products have been significantly overlooked as a result of the purported actions taken by NMDPRA.

Dangote said that NMDPRA had threatened to enforce a 0.5% levy on the refinery concerning wholesalers and off-takers, along with another 0.5% levy on wholesale transactions directed to the Midstream and Downstream Gas Infrastructure Fund, MDGIF, as stated in a letter dated June 10, 2024.

It said the cause of action contradicted statutory provisions that regulate such levies.

 

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