Dangote Petroleum Refinery and Petrochemicals FZE has asked the Federal High Court, Abuja, to cancel import licenses issued to Nigeria National Petroleum Corporation Limited (NNPC), Matrix Petroleum Services Limited, AA Rano Limited and four others companies with the aim of importing refined oil. products already manufactured by Dangote without shortcomings.

In suit number FHC/ABJ/CS/1324/2024, Dangote Refinery is also seeking N100 billion in damages against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for allegedly continuing to issue import licenses to NNPCL, Matrix and other companies to import petroleum products such as automotive gas oil (AGO) and jet fuel (aviation turbine fuel) into Nigeria, “despite production of AGO and Jet-A1 which exceeds the current daily consumption of petroleum products in Nigeria by the Dangote refinery.”

Joined as defendants in this matter are NMDPRA, NNPCL, Aym Shafa Limited, AA Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited and Matrix Petroleum Services Limited (first to seventh defendants).

Dangote refinery claims in court

In his initial summons dated September 6, 2024 and seen exclusively by Nairametrics, the plaintiff’s lawyer, Ogwu James Onoja, SAN, asked the court to declare that the NMDPRA allegedly violated sections 317 (8) and (9) of the Petroleum law. Industry Act by issuing licenses for the importation of petroleum products.

He said such licenses should only be issued when there is a shortage of petroleum products.

He also urged the court to declare that the NMDPRA is violating its statutory responsibilities under the Petroleum Industry Act (PIA) by failing to encourage local refineries such as the Dangote Refinery.

In an affidavit filed by Ahmed Hashem, Group General Manager of Government and Strategic Relations at Dangote Refinery, he maintained that the import licenses granted to other companies by the NMDPRA for the importation of AGO and Jet-A1 paralyzed the plaintiff’s business, to which he committed substantial financial resources amounting to billions of US dollars.

He noted that the plaintiff’s products are largely left unsponsored due to the NMDPRA’s alleged actions.

He said the NMDPRA has threatened to impose and demand a 0.5% levy on wholesale sales and buyers, as well as an additional 0.5% levy on wholesale sales to the Fund for midstream and downstream gas infrastructure (MDGIF) via a letter dated June 10. , 2024, contrary to legal provisions which limit the implementation of levies on transactions within free zones.

He stressed that the fundamental objective of creating free zones is to promote competition, attract foreign investment and create tax havens.

He further said that there is alleged grand conspiracy and concerted effort by international oil companies and interests, in collaboration with the accused, who are unhappy with the fact that Nigeria has a local refinery ready to resolve the persistent energy crisis and save the economy.

“The intervention of the Hon’ble Tribunal has become necessary in order to check the incessant violation of the statutory provisions by the 1st respondent in favor of other entities such as the 2nd to 7th respondents,” » declared the complainant.

The refinery’s legal team said the plaintiff was in serious distress and his investments were likely to be jeopardized unless the honorable court intervened.

He sought an injunction restraining the first defendant from issuing and/or renewing import licenses to the second to seventh defendants or other companies for the purpose of importing petroleum products.

In addition to a prohibitory order against the import licenses of the companies concerned, the complainant requested “General damages in the sum of N100,000,000,000 against the 1st respondent (NMDPRA) and an order of court directing the 1st respondent to close all tank farms, storage facilities, warehouses and stations used by the defendants for the storage of all refined products. petroleum products imported into Nigeria.

The other reliefs requested in part by the plaintiff are as follows:

• A declaration that in accordance with the provisions of Section 8(1) of the Nigerian Export Processing Zone Act (NEPZA), Sections 23(h) and 55(1) of the Tax Act Corporate Income (CIT Act), paragraph 6 of the Second Schedule Pursuant to the CIT Act, Regulation 54(2)(a)(i) of the Dangote Industries Free Zone Regulations 2020 and the Finance Act , the applicant, being an entity duly registered as a free zone enterprise, is exempt from all federal obligations. , state and local government taxes, levies and other rates.

• A declaration that it is contrary to the NEPZA Act, the CIT Act, the Finance Act and the Dangote Industries Free Zone Regulations 2020, as well as the intention of the legislature, for the 1st respondent to impose or threatens to impose on the applicant an additional financial obligation of 0.5% A levy intended for direct buyers of petroleum products and an additional 0.5% levy on wholesale in favor of the Midstream Downstream Gas Infrastructure Fund (MDGIF).

• An order of mandatory injunction directing the 1st defendant to immediately withdraw all import licenses issued to the 2nd to 7th defendants and other companies other than the plaintiff and other local refineries for the purpose of importing refined petroleum products in Nigeria.

• An order of injunction restraining the 1st respondent from imposing and demanding a levy of 0.5% intended for purchasers of petroleum products directly and an additional levy of 0.5% in bulk in favor of MDGIF or any other levy or sum against the complainant.

What happened in court

During the resuming hearing before Justice Inyang Ekwo, George Ibrahim SAN, counsel to the complainant, informed the judge that there was a development in the matter as the parties attempted to reach a settlement.

“My Lord, there is a development in this matter, which lead counsel, James Onoja SAN, has requested me to bring to the attention of the court. As we attempted to serve the summons on the defendants, they began to argue, “ he said.

He requested an adjournment to allow the parties to reach a settlement.

He suggested that the court adjourn for a possible settlement report or a report of service.

“Case adjourned until January 20, 2025, for report” Ekwo replied.

What you need to know

Recall that Africa’s richest man, Aliko Dangote, had announced his willingness to sell his multi-billion dollar oil refinery to state-owned energy company NNPC Limited.

The move came amid growing disputes with regulators and financial partners, prompting him to reflect on his investment choices in Nigeria.

Dangote was also seen alleging the importation of substandard petroleum products into Nigeria by others.

Nairametrics had earlier reported that the Federal Government had subsequently granted traders the license to purchase petroleum products directly from the Dangote refinery, following the decision of the NNPC to cease playing its role as an intermediary between two parts.

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