The Dangote Petroleum Refinery and Petrochemicals FZE has initiated legal action against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), seeking an order to invalidate all recently issued petroleum import licenses. In a suit marked FHC/ABJ/CS/1324/2024 filed at the Federal High Court in Abuja, the company is also seeking N100 billion in damages.
Dangote Refinery’s case hinges on the claim that NMDPRA issued import licenses for products such as Automotive Gas Oil (AGO) and Jet-A1 fuel to several companies, including the Nigeria National Petroleum Corporation Limited (NNPCL) and Matrix Petroleum Services Limited, despite the refinery’s domestic production surpassing the current demand for these products in Nigeria.
The refinery argues that the issuance of these licenses violates the Petroleum Industry Act (PIA), which mandates the encouragement of local refineries. In its legal filing, Dangote Refinery claims that the decision to grant these import permits jeopardizes its multibillion-dollar investments, leaving its products unpatronized.
The suit names NNPCL, A.Y.M. Shafa Holdings Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited as additional defendants.
In a supporting affidavit, Ahmed Hashem, Group General Manager of Government and Strategic Relations for Dangote Refinery, revealed that the import licenses are crippling the company’s business, adding that NMDPRA had also threatened to impose a 0.5% levy on the plaintiff’s wholesale transactions and off-takers, which contravenes provisions applicable to entities operating within Free Zones.
Hashem also alleged a conspiracy involving international oil interests and the defendants, suggesting that these forces are opposed to the development of an indigenous refinery that could resolve Nigeria’s energy challenges.
Dangote Refinery has requested the court to issue an injunction preventing NMDPRA from issuing or renewing petroleum import licenses to the defendants. It further seeks declarations affirming that the company, as a Free-Zone Enterprise, is exempt from federal, state, and local taxes and that NMDPRA’s threatened imposition of levies is unlawful.
The outcome of this case could have significant implications for Nigeria’s petroleum industry and the ongoing competition between local and foreign entities in the sector.
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