Dangote Refinery’s Lawsuit To Block Competitors Dismissed As ‘Premature’ By NNPCL In Court

Dangote Refinery’s Lawsuit To Block Competitors Dismissed As ‘Premature’ By NNPCL In Court

The Nigerian National Petroleum Corporation Limited (NNPCL) has filed a preliminary objection against a lawsuit by Dangote Petroleum Refinery and Petrochemicals FZE, which seeks exclusive rights to supply petroleum products in Nigeria..….READ MORE

NNPCL, represented by its legal team led by Kehinde Ogunwumiju, SAN, argued that Dangote Refinery’s suit, aimed at invalidating its import licence for refined petroleum products, is legally incompetent and premature.

The plaintiff, Dangote Refinery, contends that it is unfair to allow the NNPCL and other major oil marketers to import petroleum products despite its own surplus production capacity. It alleged that the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) violated the Petroleum Industry Act (PIA) by issuing import licences to other players.

The refinery requested the court to:

Restrain the NMDPRA from issuing further licences to other marketers.
Award ₦100 billion in damages for continued issuance of import licences.
Seal all facilities storing imported petroleum products by the defendants.

In its defense, the NNPCL argued that:

The suit is premature and lacks jurisdiction.
Dangote Refinery lacks the legal standing (locus standi) to seek such reliefs.
The plaintiff wrongly named a non-existent entity, the NNPC, as a defendant.

Major oil marketers, including AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited, opposed Dangote Refinery’s lawsuit, describing it as an attempt to monopolize Nigeria’s petroleum industry. They argued that allowing such monopoly would undermine competition, worsen economic challenges, and harm Nigerians.

Justice Inyang Ekwo adjourned the case until January 20, 2025, encouraging the parties to explore an out-of-court settlement. Dangote Refinery has expressed readiness to withdraw the lawsuit if a resolution is reached.

Stay updated for further developments on this high-stakes legal battle in Nigeria’s energy sector.

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