Refinery War Intensifies: Dangote Demands Court To Correct Legal Blunder And Reignite License Fight

Refinery War Intensifies: Dangote Demands Court To Correct Legal Blunder And Reignite License Fight

ABUJA – Dangote Petroleum Refinery and Petrochemicals FZE has approached the Federal High Court in Abuja, requesting permission to amend its lawsuit challenging the import licenses granted...READ MORE…

to the Nigerian National Petroleum Company Limited (NNPCL) and six other entities for the importation of refined petroleum products into Nigeria.

In an application filed by its legal team, led by Chief Ogwu Onoja, SAN, Dangote Refinery is seeking to correct the name of the second defendant in the case. The amendment comes after a preliminary objection filed by NNPCL, which argued that Dangote Refinery had erroneously sued a non-existent entity, namely the “Nigeria National Petroleum Corporation Limited (NNPC).”

NNPCL, which now exists under a different name, challenged the suit’s legitimacy, contending that the listed second defendant was not a recognized legal entity. NNPCL also argued that the court lacked jurisdiction to hear the case, calling the suit “premature” and accusing the plaintiff of misnaming the defendant.

In its latest move, Dangote Refinery is requesting the court to amend the second defendant’s name to “Nigerian National Petroleum Company Limited,” in line with the current corporate structure.

The refinery’s legal team argued that this error was noticed after the suit was initially filed and emphasized that correcting the name would not prejudice the defendants. They asserted that the amendment was crucial for maintaining the accuracy of court records.

The suit, marked FHC/ABJ/CS/1324/2024, challenges the legality of licenses issued to the defendants to import petroleum products, despite Dangote Refinery’s ability to produce sufficient quantities of Automotive Gas Oil (AGO) and Jet Fuel (Jet-A1) that exceed Nigeria’s current consumption needs. The company is seeking N100 billion in damages from the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for continuing to issue import licenses despite the refinery’s existing production capacity.

Additionally, Dangote Refinery is requesting an injunction to prevent NMDPRA from issuing or renewing import licenses for the defendants, as well as a court order to seal storage facilities used by the importers for petroleum products.

Several major oil marketers, including AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited, are also named as defendants in the case. These companies have opposed the suit, accusing Dangote Refinery of attempting to monopolize the Nigerian energy market. They argue that granting Dangote such control would harm the country’s economy and increase hardship for citizens.

The defendants, including the marketers, have also emphasized their legal right to be issued licenses to import petroleum products and warned that reducing competition could destabilize Nigeria’s petroleum sector and worsen economic challenges.

Justice Inyang Ekwo has adjourned the case to January 20, 2025, giving the parties time to explore an out-of-court settlement. Dangote Refinery has expressed its willingness to withdraw the suit if an agreement is reached.

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