KEY POINTS

• Dangote’s import licence suit too premature, unfounded – NNPCL.
• Monopolization of Nigeria’s petroleum sector is warned against by oil marketers.
• Case adjourned as court explores possible out of court settlement.

Dangote Petroleum Refinery and Petrochemicals FZE having brought a suit claiming that the Nigeria National Petroleum Corporation Limited (NNPCL) is not legally authorized to import petroleum products into Nigeria, the NNPCL filed preliminary objection to the suit.

Dangote Refinery, which filed the suit before the Federal High Court, Abuja, is seeking an order restraining Nigeria Midstream and Downstream Petroleum Regulatory Authority, (NMDPRA), and other defendants, which include NNPCL, from importation of refined petroleum products to the country, averring that it can cater to the needs of the nation.

Allegations of a monopoly and claim for damages

The Dangote Refinery claims that the NMDPRA also ran afoul of the PIA, having granted import licences to NNPCL and other marketers while the Dangote Refinery is confident of meeting the local demand.

Furthermore, the firm is demanding N100 billion in damages and a ‘perpetual injunction against all imports of petroleum product by others in Nigeria.’

The refinery also seeks orders for:
1. Closing facilities used for the storage of imported petroleum products.
2. The banishment of all import licences granted to the defendants.
3. A ban on levies imposed on it for off takers and wholesale distribution.

NNPCL’s rebuttal

Defending Dangote Refinery, Kehinde Ogunwumiju, SAN, NNPCL said the suit was premature as Dangote Refinery did not have the legal standing to pursue the matter.

The plaintiff’s suit discloses no cause of action and is premature. The entity sued, ‘NNPC’, is legally non existent as there is no such entity in law and this court has lacked the jurisdiction to hear the matter,’ NNPCL further stated in the seven paragraph statement.

NNPCL had further contended that monopolizing the petroleum sector will be injurious to Nigeria’s economy, kill competition in the industry and worsen the already worrisome economic hardship of consumers.

The defendants battle monopolization

AYM Shafa Limited, A. A. Rano Limited and Matrix Petroleum Services Limited, major oil marketers, also asked for an outright dismissal of the suit against Dangote over monopoly in the energy sector.

But they contended that giving Dangote sole import rights would disrupt competitive pricing and worsen Nigeria’s economic woes.

Court proceedings

Giving advice for out of court settlement of the case, Justice Inyang Ekwo adjourned the case to January 20, 2025. Moreover the plaintiff said it was prepared to withdraw the suit.