NNPCL Seeks to Dismiss Dangote Refinery’s Lawsuit Over Import Licenses

The Nigerian National Petroleum Company Limited (NNPCL) has filed a motion to dismiss a lawsuit brought by Dangote Petroleum Refinery and Petrochemicals FZE, calling it “incompetent.” This legal battle arose after Dangote Refinery filed a suit at the Federal High Court in Abuja, seeking to invalidate the import licenses granted by the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to NNPCL, Matrix Petroleum Services Limited, A. A. Rano Limited, and other companies for importing refined petroleum products.

Dangote Refinery claims that the NMDPRA violated the Petroleum Industry Act by issuing these licenses, arguing that its refinery has the capacity to meet Nigeria’s domestic fuel demands. The refinery is demanding N100 billion in damages and an injunction to prevent the NMDPRA from issuing further licenses.

The lawsuit has sparked significant debate, with some accusing Dangote of attempting to monopolize the market. Supporters of the import licenses argue that Dangote’s refinery cannot yet meet the full demand for fuel in the country, necessitating imports to fill the gap.

NNPCL, in its response, is seeking two court orders: the dismissal of the suit due to lack of jurisdiction and, alternatively, the removal of NNPCL from the list of defendants. NNPCL argues that Dangote Refinery lacks standing to challenge the issuance of these licenses and asserts that the case does not disclose a valid cause of action.

Dangote’s suit, filed under Case No: FHC/ABJ/CS/1324/2024, questions the appropriateness of allowing NNPCL and other marketers to import refined petroleum products when there is no domestic shortfall in production. The refinery is focused on the argument that importation licenses should only be granted in cases where local production is insufficient to meet national demand, as per Sections 317(8) and (9) of the Petroleum Industry Act.

The Dangote Refinery, a major project led by Africa’s wealthiest individual, Aliko Dangote, aims to revolutionize Nigeria’s energy sector. Once completed, it will be the largest refinery in Africa, with a production capacity of 650,000 barrels per day.

In its legal filing, Dangote Refinery contends that import licenses should be restricted to situations where local refineries, including its own, cannot meet national demand. This position is rooted in the PIA’s provisions on controlling importation to prioritize domestic production.

In response, NNPCL’s motion to dismiss highlights that the lawsuit is premature, arguing that it lacks merit and does not establish a legitimate cause of action. NNPCL also points out that the legal entity listed as “Nigeria National Petroleum Corporation Limited (NNPC)” does not exist, based on a search of the Corporate Affairs Commission (CAC) database.

Justice Inyang Ekwo has adjourned the case until January 20, 2025, to allow for potential out-of-court settlement talks between the involved parties.