BREAKING; Dangote Refinery sues Nigerian Govt  seeks to cancel Import Licenses of NNPCL, others

Dangote Refinery has filed a petition with the Federal High Court in Abuja, aiming to cancel import licenses given to the Nigerian National Petroleum Company Limited (NNPCL), Matrix Petroleum Services Limited, and A. A. Rano.

In its application, Dangote argues that these companies secured import licenses for petroleum products despite the refinery producing more AGO and Jet-A1 than the current daily demand in Nigeria.

The case, labeled FHC/ABJ/CS/1324/2024, also seeks N100 billion in damages from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The refinery contends that the NMDPRA has been improperly issuing import licenses for products like AGO and jet fuel to these companies.

Defendants in the case include the NMDPRA, NNPCL, Aym Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.

Dangote’s legal representative, Ogwu James Onoja, SAN, is asking the court to rule that the NMDPRA is violating Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by allowing licenses for imports that should only be issued during product shortages.

The refinery asserts that the NMDPRA’s actions are undermining local operations, noting that the import licenses have negatively impacted its business, into which it has invested billions of dollars.

Dangote claims its products have been sidelined due to the NMDPRA’s decisions.

Additionally, the refinery highlighted a recent letter dated June 10, 2024, indicating that the NMDPRA plans to enforce a 0.5% levy on the refinery related to wholesalers and off-takers, as well as another 0.5% levy for transactions directed to the Midstream and Downstream Gas Infrastructure Fund (MDGIF).

Dangote argues that these levies are inconsistent with existing statutory regulations.