Dangote Refinery Seeks Court to Nullify Import Licenses of NNPCL and Others in ₦100 Billion Lawsuit

Dangote Refinery has filed a ₦100 billion lawsuit seeking to invalidate the import licenses of the Nigerian National Petroleum Corporation Limited (NNPCL) and other entities, citing unfair competition.

Dangote Petroleum Refinery and Petrochemicals has initiated legal action in the Federal High Court in Abuja, seeking to revoke import licenses issued to the Nigerian National Petroleum Company Limited (NNPCL), Matrix Petroleum Services Limited, AA Rano Limited, along with four additional companies.

The case focused on the import of refined petroleum products, which Dangote Refinery argued were already being produced domestically without any shortages.

In the lawsuit, Dangote Refinery is seeking ₦100 billion in damages from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The refinery claimed that the NMDPRA has wrongfully continued to grant import licenses for products such as diesel and jet fuel to companies like NNPCL, Matrix Energy, and others, even though Dangote’s production capacity surpasses Nigeria’s current daily consumption of these products.

A fleet of trucks is observed loading Premium Motor Spirit, also known as petrol, at the refinery in Lagos State’s Ibeju-Lekki area. Credit: X/@DangoteGroup

The case involves the following defendants: NMDPRA, NNPCL, A.Y.M Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.

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In its initial legal complaint, Dangote contended that the NMDPRA breached sections 317(8) and (9) of the Petroleum Industry Act (PIA) by granting import licenses in situations where no

The refinery argued that licenses should be issued solely when there is a clear necessity for imported products.

According to an affidavit from the Dangote Refinery Group, import licenses granted to other companies are harming their business. The company has invested billions of dollars in production and argues that these actions have led to a decrease in demand for its products.

The group claimed that the NMDPRA has threatened to impose a 0.5% levy on Dangote’s wholesale transactions, which violates statutory provisions restricting such levies within free zones. They argued that free zones are established to promote competition and attract foreign investment.

Dangote’s legal team argued that the circumstances required judicial intervention to stop continuous breaches of statutory provisions that favored certain entities over others.

The refinery requested a court order to stop the NMDPRA from granting or renewing import licenses for the defendants.

The additional reliefs requested are as follows: ₦100 billion in general damages against NMDPRA, an order for the NMDPRA to close all facilities used by the defendants for storing imported refined petroleum products, a declaration that Dangote is exempt from federal, state, and local government taxes due to its status as a registered free-zone enterprise. Furthermore, there’s a request for declaring any extra levies imposed on Dangote contrary to various legislative acts and an order requiring the NMDPRA to retract all import licenses granted to the defendants.

During Monday’s proceedings, Dangote’s legal team notified the court about ongoing discussions between the parties to achieve a settlement. They requested an adjournment to support these negotiations further.

Justice Inyang Ekwo, the presiding judge, subsequently postponed the case to January 20, 2025, for the report.