Dangote Seeks N100bn In Fuel Import Row Announces Out-of-Court Settlement With NNPCL

Dangote Seeks N100bn In Fuel Import Row Announces Out-of-Court Settlement With NNPCL

Dangote Refinery and Petrochemicals announced yesterday that it is working towards an out-of-court settlement with the Nigerian National Petroleum Company Limited (NNPCL) and six other defendants regarding the issuance of import licenses.…..CONTINUE READING 

by the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for the importation of petrol.

Earlier, Dangote had filed a lawsuit at the Federal High Court in Abuja, seeking to nullify the import licenses and claim N100 billion in damages from the NNPCL, accusing them of undermining the company’s business.

However, in a statement released last night by the Group Chief Branding and Communications Officer, Anthony Chiejine, Dangote confirmed that discussions are ongoing to resolve the issue amicably, following a June directive from President Bola Tinubu on crude oil and refined product sales in naira, which has been approved by the Federal Executive Council (FEC).

“This is an old matter initiated in June, culminating in the lawsuit filed on September 6, 2024. Significant progress has been made since then, and no parties have been served with court papers. As such, there is no intention to continue legal proceedings,” the statement read. The case is expected to be formally withdrawn in January 2025.

In the original lawsuit, Dangote Refinery challenged the validity of the licenses issued to NNPCL and other companies, arguing that they were granted despite Dangote’s production of refined petroleum products, including Automotive Gas Oil (AGO) and Jet-A1 fuel, which allegedly exceeds the country’s daily consumption needs.

The refinery also sought an injunction to stop NMDPRA from issuing further import licenses and demanded the sealing off of facilities used by competitors to store imported petroleum products.

Additionally, Dangote asked the court to declare the plaintiff exempt from various federal, state, and local taxes and levies as per the Nigerian Export Processing Zone Act (NEPZA) and other applicable laws.

The plaintiff also argued that NMDPRA violated the Petroleum Industry Act by issuing licenses to import petroleum products when no shortfall in local production had been demonstrated.

Meanwhile, a legal representative for Dangote indicated that discussions aimed at resolving the matter are progressing, and the court has adjourned the case to January 20, 2025, for a settlement report.