Dangote Refinery has filed a lawsuit against the NMDPRA, seeking to annul import licenses granted to several companies for petroleum products already produced domestically. The refinery claims these actions undermine its operations, demanding N100 billion in damages and an injunction against further license issuances.
In a significant legal move, Dangote Petroleum Refinery and Petrochemicals FZE has filed a suit in the Federal High Court in Abuja, requesting the cancellation of import licenses granted to several companies, including the Nigeria National Petroleum Corporation Limited (NNPC), Matrix Petroleum Services Limited, and A. A. Rano Limited. The lawsuit, designated FHC/ABJ/CS/1324/2024, comes as Dangote contends that these licenses allow the importation of refined petroleum products that it already produces over local demand.
The company is also seeking a substantial N100 billion in damages from the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), claiming that the continued issuance of import licenses to its competitors violates the Petroleum Industry Act (PIA). According to the refinery's legal representatives, such licenses should only be granted in instances of product shortfalls—a condition they argue does not apply given Dangote's production capabilities.
The court documents reveal that Dangote has made a significant investment in its operations, amounting to billions of dollars, and is struggling to gain market traction due to the alleged favoritism shown by NMDPRA towards other entities. An affidavit submitted by Ahmed Hashem, the Group General Manager of Government and Strategic Relations at Dangote Refinery, highlights the adverse impact of these licenses on the company’s business.
The refinery is particularly concerned about a recent threat from NMDPRA to impose a 0.5% levy on its wholesale transactions, which Dangote argues contradicts established regulations that exempt Free Zone enterprises from such taxes. The company's legal team insists that this move is part of a larger conspiracy involving international oil companies seeking to undermine local refining efforts.
In response to the legal challenge, the parties involved have begun discussions aimed at settling. During a recent court appearance before Justice Inyang Ekwo, the plaintiff's counsel indicated that negotiations were underway, requesting an adjournment to allow time for a resolution.
