The Federal High Court in Abuja has adjourned ruling on the preliminary objection filed by the Nigerian National Petroleum Company Limited (NNPCL) against a suit filed by Dangote Refinery......CLICK HERE TO CONTINUE READING>>>.....CLICK HERE TO CONTINUE READING>>>
The case, which challenges the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and five oil companies over the issuance of petroleum product import licenses, will now be decided on March 18, 2025.
Moving the preliminary objection on Wednesday, NNPCL’s counsel, Abimbola Ademola, SAN, prayed the court to strike out the suit filed by Dangote Refinery for lack of jurisdiction or, in the alternative, to remove NNPCL from the case.
In response, the plaintiff’s counsel, George Ibrahim, SAN, argued that the plaintiff had filed a five-paragraph affidavit and a written address urging the court to dismiss NNPCL’s objection as unnecessary. Ibrahim also prayed the court to allow the plaintiff’s application to amend its suit.
After both parties adopted their written submissions, the presiding judge, Justice Inyang Ekwo, adjourned the case until March 18, 2025, for a ruling.
Dangote Refinery had sued NMDPRA, NNPCL, AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited as the first to seventh defendants, respectively, in an originating summons marked FHC/ABJ/CS/1324/2024, dated September 6, 2024.
The refinery is asking the court to nullify the import licenses issued by NMDPRA to NNPCL and the five other companies, arguing that such licenses should only be granted in cases of petroleum product shortfalls, as stipulated in Sections 317(8) and (9) of the Petroleum Industry Act (PIA).
Additionally, Dangote Refinery is seeking ₦100 billion in damages against NMDPRA for allegedly continuing to issue import licenses to NNPCL and the five oil companies.
In a counter-affidavit, Idris Musa, a Senior Regulatory Officer at NMDPRA, prayed the court to dismiss the suit, describing it as misconceived, unmeritorious, and incompetent. He argued that Dangote Refinery is not entitled to any of the reliefs sought.
Musa, in an application filed on December 13, 2024, stated that Dangote Refinery’s current production does not meet the national daily petroleum product sufficiency requirement. “Based on this and in compliance with Section 317(9) of the PIA, NMDPRA issued licenses to companies with good track records of international product trading to bridge the product shortfall,” he said.
Furthermore, Musa stated that NMDPRA is mandated to promote competition and prevent abuse of dominant market positions and unhealthy monopolies in the oil and gas sector. He denied allegations that NMDPRA was involved in any “grand conspiracy and concerted efforts” against the refinery, dismissing them as unsubstantiated claims without supporting evidence.
Additionally, the oil marketers, in a joint counter-affidavit filed on November 5, 2024, argued that granting Dangote’s application would be detrimental to the country’s oil sector.
According to them, any attempt to monopolize the oil sector would spell disaster for Nigeria.
Three marketers—AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited—contended that Dangote Refinery does not produce adequate petroleum products to meet Nigeria’s daily consumption needs. They further argued that the plaintiff had not provided any evidence to the contrary.