The Dangote Petroleum Refinery and Petrochemicals FZE has filed a suit at a High Court in Abuja, seeking an order to invalidate recently issued licenses for importing petroleum products into the country.
In a suit with the reference FHC/ABJ/CS/1324/2024, Dangote Petroleum also seeks damages of N100 billion against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for allegedly granting import licenses to the Nigeria National Petroleum Corporation Limited (NNPCL), Matrix Petroleum Services Limited (Matrix), and others for importing petroleum products like Automotive Gas Oil (AGO) and Jet Fuel (aviation turbine fuel) into the country, despite Dangote’s production capacity exceeding the country’s current daily petroleum product consumption.
The defendants in the suit include the NMDPRA, NNPCL, A.Y.M. Shafa Holdings Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.
Represented by a group of lawyers led by Ogwu Onoja (SAN), Dangote contends that the licenses issued to NNPCL and others contravene the Petroleum Industry Act (PIA).
The plaintiff expresses distress, stating that its investments are at risk unless the court intervenes to declare that NMDPRA is not fulfilling its statutory responsibilities under the PIA by encouraging local refineries but instead issuing import licenses for petroleum products.
The plaintiff further alleges a grand conspiracy and concerted effort by International Oil Companies and interests in collaboration with the defendants, who are reportedly displeased with the presence of an indigenous refinery in Nigeria capable of addressing the energy crisis and bolstering the economy.
Dangote seeks an injunction to restrain the NMDPRA from further issuing or renewing import licenses to the other defendants or companies for importing petroleum products. In a supporting affidavit, Dangote states that such licenses should only be issued in the event of a petroleum product shortfall.
Dangote Argues Imports Threatens its Business
The firm’s Group General Manager of Government and Strategic Relations, Ahmed Hashem, explained in the supporting affidavit that the import licenses granted to other companies by NMDPRA for the importation of AGO and Jet-A1 are adversely affecting the plaintiff’s business, which has received substantial financial investment in billions of US dollars.
Hashem also notes that NMDPRA has threatened to impose and demand a 0.5% levy on the plaintiff on wholesales and off-takers and another 0.5% levy on wholesales to the Midstream and Downstream Gas Infrastructure Fund (MDGIF), contrary to statutory provisions governing levies on transactions within Free Zones.
Hashem stated that the primary goal of establishing Free Zones is to encourage competition, attract foreign investment, and establish tax havens.
Dangote is seeking a court order to stop the NMDPRA from issuing or renewing import licenses to other companies for importing petroleum products.
Reliefs Sought by Dangote
In addition to the restraining order against the import licenses of the affected companies, the plaintiff is also seeking the following reliefs:
The plaintiff also wants the court to assert that NMDPRA allegedly violates Sections 317(8) and (9) of the Petroleum Industry Act by issuing licenses to import petroleum products.
*A declaration that, according to the provisions of the Nigerian Export Processing Zone Act (NEPZA), Companies Income Tax Act (CIT Act), Dangote Industries Free Zone Regulation 2020, and the Finance Act, the plaintiff, as a Free-Zone Enterprise, is exempted from all federal, state, and local government taxes, levies, and other rates.
*A declaration that it is against the NEPZA Act, CIT Act, Finance Act, and Dangote Industries Free Zone Regulation 2020, as well as legislative intent, for the 1st Defendant to impose or threaten to impose an additional financial obligation of a 0.5% levy, meant for off-takers of petroleum products directly and an additional 0.5% wholesale levy in favour of the Midstream Downstream Gas Infrastructure Fund (MDGIF) on the plaintiff.
*An order of mandatory injunction directing the 1st Defendant to immediately withdraw all import licenses issued to the 2nd-7th defendants and companies other than the plaintiff and other local refineries for importing refined petroleum products into Nigeria.
*An order of injunction restraining the 1st Defendant from imposing and demanding a 0.5% levy meant for off-takers of petroleum products directly and an additional 0.5% wholesale levy in favour of MDGIF or any other levy or sum against the plaintiff.
During Monday’s court session, the plaintiff’s lawyer, George Ibrahim (SAN), informed the court about the possibility of settling the case out of court.
Ibrahim then requested an adjournment to allow the parties to explore the settlement option. He suggested that the court adjourns for a possible settlement or service report.
In his ruling, Justice Inyang Ekwo adjourned further proceedings until January 20, 2025.
