No Fresh Case Filed Against NNPCL, Others –Dangote Refinery
Dangote Refinery has said the company has not filed any fresh case against the Nigeria National Petroleum Corporation Limited (NNPCL), according to an official statement.
The company said in a reaction to the news that the Refinery and Petrochemicals FZE has prayed a Federal High Court in Abuja to nullify import licences issued to the Nigeria National Petroleum Corporation Limited and five other companies for the purpose of importing refined petroleum products.
The case filed against oil regulators centred on the importation of refined petroleum products that Dangote Refinery claimed were already being produced domestically without shortages.
In the suit, Dangote Refinery is also demanding ₦100bn in damages from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The refinery alleged that the NMDPRA has unlawfully continued to issue import licenses to the NNPCL, Matrix Energy, and others for products like diesel and jet fuel, despite Dangote’s production capacity exceeding Nigeria’s current daily consumption of these products.
The defendants in the case include NMDPRA, NNPCL, A.Y.M Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.
In its originating summons, Dangote argued that the NMDPRA has violated sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing import licenses under circumstances where no product shortfall exists.
The refinery contended that such licenses should only be granted when there is a demonstrated need for imported products.
The affidavit from Dangote Refinery Group stated that the import licenses issued to other companies are detrimental to Dangote’s business, which has invested billions of dollars into production. The company claimed that these actions have resulted in a lack of patronage for Dangote’s products.
The group alleged that NMDPRA has threatened to impose a 0.5% levy on Dangote’s wholesale transactions, which contravened statutory provisions that restrict such levies on transactions within free zones, arguing that the establishment of free zones aims to encourage competition and attract foreign investment.
Dangote’s legal team asserted that the situation necessitated judicial intervention to prevent ongoing violations of statutory provisions favouring certain entities over others.
The refinery sought an injunction to prevent the NMDPRA from issuing or renewing import licenses for the defendants.
Additional reliefs sought include general damages of ₦100 billion against NMDPRA, an order directing the NMDPRA to seal off all facilities used by the defendants for storing imported refined petroleum products, a declaration that as a registered free-zone enterprise, Dangote is exempt from all federal, state, and local government taxes, levies, and rates, a declaration that imposing additional levies on Dangote is contrary to various legislative acts, an order directing the NMDPRA to withdraw all import licenses issued to the defendants.
At Monday’s proceeding, Dangote’s legal team informed the court of ongoing discussions between the parties aimed at reaching a settlement. He requested an adjournment to facilitate these negotiations.
The presiding judge, Justice Inyang Ekwo subsequently adjourned the case to January 20, 2025, for the report.
“This is an old issue that started in June and culminated in a matter being filed on September 6, 2024. Currently, the parties are in discussion since the President Bola Tinubu’s directive on Crude Oil and Refined products sales in Naira Initiative, which was approved by the Federal Executive Council (FEC).
“We have made tremendous progress in that regard and events have overtaken this development. No party has been served with court processes and there is no intention of doing so. We have agreed to put a halt to the proceedings.
“It is important to stress that no orders have been made and there are no adverse effects on any party. We understand that once the matter comes up January 2025, we would be in a position to formally withdraw the matter in court”, Dangote said in a statement. #No Fresh Case Filed Against NNPCL, Others –Dangote Refinery
