Dangote Refinery Seeks Cancellation of Import Licenses to Protect Domestic Production

Dangote Refinery Seeks Cancellation of Import Licenses to Protect Domestic Production

Dangote Petroleum Refinery and Petrochemicals FZE has filed a lawsuit with the Federal High Court in Abuja, seeking to annul the import licenses granted to the Nigerian National Petroleum Corporation (NNPC), Matrix Petroleum Services, A. A. Rano, and four other oil companies.

According to Nairametrics, these licenses permit the companies to import refined petroleum products, but Dangote contends that it produces sufficient quantities of these products to meet local demand, negating the need for imports.

The case, registered under suit number FHC/ABJ/CS/1324/2024, also demands N100 billion in damages from the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Dangote Refinery claims that the regulator’s ongoing issuance of import licenses for products like Automotive Gas Oil (AGO) and Jet-A1 fuel is causing significant financial losses for the refinery.

In its suit, Dangote, represented by legal counsel Ogwu James Onoja (SAN), argues that NMDPRA is contravening the Petroleum Industry Act (PIA), particularly Sections 317(8) and (9), which restrict the issuance of import licenses to instances where there is a shortfall in domestic petroleum production.

The refinery asserts that its production capacity exceeds Nigeria’s current daily consumption of AGO and Jet-A1 fuel, indicating no necessity for importing these products. Defendants in the suit include NMDPRA, NNPCL, Aym Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.

Furthermore, the refinery’s legal team has alleged a “grand conspiracy” among International Oil Companies (IOCs) and other stakeholders, in collusion with the defendants, to undermine Nigeria’s first indigenous refinery.

The suit claims these entities are dissatisfied with Dangote Refinery’s ability to address the country’s energy crisis and reduce dependence on imports.

In addition, Dangote Refinery is seeking an injunction to prevent NMDPRA from issuing or renewing any further import licenses for refined petroleum products to the defendants or any other companies.

The plaintiff is also requesting a court order to shut down all tank farms, storage facilities, and warehouses utilized by the defendants for storing imported petroleum products.

Recently, the Dangote Group has been at odds with NNPC, petroleum regulators, and various private oil companies over control of the downstream petroleum market.

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