The Federal High Court in Abuja adjourned the hearing of a N100 billion lawsuit filed by Dangote Petroleum Refinery and Petrochemicals FZE against the Nigerian National Petroleum Company Limited (NNPCL) and several other entities over an oil import license dispute.
The case, originally scheduled for Wednesday, October 29, was postponed to November 5 due to the absence of the presiding judge, Justice Mohammed Umar, who was attending to matters at the Enugu division of the court.
The suit, which seeks to nullify import licenses granted by the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to NNPCL and five private oil companies—AYM Shafa Limited, A.A. Rano Limited, T.
Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited—alleges violations of Sections 317(8) and (9) of the Petroleum Industry Act (PIA). Dangote Refinery argues that such licenses should only be issued in cases of proven petroleum product shortfalls and is claiming N100 billion in damages from NMDPRA for continuing to issue them.
Background and Proceedings
- The case was reassigned to Justice Umar from Justice Inyang Ekwo, restarting proceedings afresh.
- On July 10, Justice Umar ordered all parties to regularize their processes and issued hearing notices to absent defendants.
- Earlier, on March 18, Justice Ekwo dismissed NNPCL’s preliminary objection as incompetent, allowing Dangote to amend its originating motion to correct NNPCL’s name and rejecting a joinder motion by the Federal Competition and Consumer Protection Commission (FCCPC) as unnecessary.
Defendants’ Responses
- NNPCL: Filed a preliminary objection to strike out the suit, claiming it is premature, discloses no cause of action, and that the court lacks jurisdiction. They also argued that the entity sued as “Nigeria National Petroleum Corporation Limited (NNPC)” does not exist, based on a Corporate Affairs Commission (CAC) search.
- NMDPRA: Countered that the suit is unmeritorious, stating Dangote’s production does not meet national demand, justifying import licenses under PIA Section 317(9) to bridge shortfalls and promote competition. They denied any conspiracy against the refinery.
- Oil Marketers (AYM Shafa, A.A. Rano, Matrix): In a joint affidavit filed November 5, 2024, warned that granting Dangote’s requests would monopolize the sector and harm Nigeria’s oil industry, as the refinery does not produce enough for daily consumption.
This ongoing dispute highlights tensions in Nigeria’s petroleum sector regarding import regulations and market competition. Further developments are expected at the November 5 hearing.