Kehinde Fajobi
The Nigeria National Petroleum Corporation Limited (NNPCL) has challenged a lawsuit filed by Dangote Petroleum Refinery and Petrochemicals FZE, which seeks to secure exclusive rights to supply petroleum products in Nigeria.
The NNPCL, in a preliminary objection filed through its lead counsel, Kehinde Ogunwumiju (SAN), argued that the suit, aimed at invalidating its licence to import refined petroleum products, is legally flawed and premature.
Dangote Refinery’s suit, marked FHC/ABJ/CS/1324/2024, targets the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), NNPCL, and other major oil marketers, including AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited.
The refinery claims that the NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing import licences to the defendants despite sufficient local production capacity.
The plaintiff is seeking ₦100 billion in damages against the NMDPRA and an injunction to halt the issuance or renewal of import licences to the defendants.
It also demanded the withdrawal of all existing licences and the closure of storage facilities used by the defendants for imported petroleum products.
In a counter affidavit, AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited urged the Federal High Court in Abuja to dismiss the suit.
They argued that Dangote Refinery’s attempt to monopolise the oil sector would harm Nigeria’s petroleum market.
“Granting the plaintiff’s application is a recipe for disaster. The plaintiff does not produce enough petroleum products to meet Nigeria’s daily consumption,” the marketers said.
They asserted that the import licences issued to them complied fully with the PIA and other relevant laws and did not impair Dangote Refinery’s operations.
The NNPCL, in its objection, questioned the court’s jurisdiction and claimed that the suit was filed against a non-existent entity.
“The plaintiff’s suit is premature and discloses no cause of action. The second defendant, listed as Nigeria National Petroleum Corporation Limited (NNPC), does not exist,” the NNPCL stated, highlighting that the NNPC has transitioned to NNPCL under its current registration.
The corporation also contended that Dangote Refinery lacked the legal standing to pursue its claims, urging the court to dismiss the suit or strike out its name from the proceedings.
Justice Inyang Ekwo has adjourned the matter to 20 January 2025 for a hearing, allowing the parties time to consider an out-of-court settlement.
Dangote Refinery has indicated its willingness to withdraw the suit during this period.