Court strikes out NNPCL’s objection in N100bn import license suit filed by Dangote Refinery

The Federal High Court in Abuja has struck out the preliminary objection raised by the Nigerian National Petroleum Company Limited (NNPCL) against the N100 billion import license suit filed by Dangote Petroleum Refinery and Petrochemicals FZE.

Justice Inyang Ekwo delivered the ruling after hearing oral submissions from the legal representatives of Dangote Refinery, NNPCL, and other parties involved in the case.

Dangote Petroleum Refinery and Petrochemicals FZE initiated the suit seeking to nullify import licenses issued to NNPCL, Matrix Petroleum Services Limited, A.A. Rano Limited, and four other companies for bringing refined petroleum products into Nigeria.

The refinery argues that these products are already being produced domestically in sufficient quantities.

In suit number FHC/ABJ/CS/1324/2024, Dangote Refinery is also demanding N100 billion in damages from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for allegedly issuing import licenses despite no proven shortfall in domestic petroleum production.

The defendants in the case include NMDPRA, NNPCL, AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited.

The plaintiff’s lawyer, George Ibrahim, SAN, contended that NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by granting import licenses for petroleum products when there was no evidence of inadequate supply.

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Legal representatives of Matrix Petroleum, A.A. Rano, and AYM Shafa, led by Ahmed Raji, SAN, urged the court to dismiss the suit, arguing that only NMDPRA and NNPCL have the legal authority to assess petroleum product shortfalls, not Dangote Refinery.

Meanwhile, NNPCL’s counsel, Ademola Abimbola, SAN, filed a preliminary objection, claiming that Dangote Refinery mistakenly sued “Nigeria National Petroleum Corporation,” a non-existent entity, instead of the properly registered “Nigerian National Petroleum Company Limited.”

Abimbola also argued that NMDPRA must first implement the Backward Integration Policy before restricting petroleum product import licenses to address shortfalls in local refinery production.

Justice Ekwo ruled on Tuesday that NNPCL’s preliminary objection was incompetent and should be struck out.

He noted that NNPCL failed to file a counter affidavit against Dangote Refinery’s claims and instead relied solely on a preliminary objection, which was contrary to legal procedures.

Ekwo stated that jurisdictional issues could be addressed at the judgment stage and faulted NNPCL for violating Order 16 of the Federal High Court rules. “I make an order striking out the preliminary objection of the NNPCL,” the judge ruled.

Furthermore, Ekwo granted Dangote Refinery’s request to amend its suit to correctly cite NNPCL’s legal name, emphasizing that the company would not suffer any miscarriage of justice from the amendment.

He directed Ibrahim to serve the amended suit to all involved parties.

The court ruling comes amid heightened tensions in Nigeria’s petroleum industry. Africa’s richest man, Aliko Dangote, has previously signaled his willingness to sell his multibillion-dollar refinery to NNPCL due to ongoing disputes with regulators and equity partners.

Dangote has also accused petroleum importers of bringing substandard fuel products into Nigeria, exacerbating quality concerns.

In response to these challenges, the federal government recently approved the direct purchase of petroleum products from Dangote Refinery by marketers, bypassing NNPCL’s intermediary role in the supply chain.

As the legal battle over petroleum importation continues, industry stakeholders and economic analysts will closely monitor the next steps in the dispute between Dangote Refinery, NNPCL, and regulatory authorities.