Dangote Refinery Wants Court To Withdraw Import Licenses Of NNPCL, Matrix Petroleum , AA Rano Ltd, Four Other Companies

Dangote Petroleum Refinery and Petrochemicals has asked a Federal High Court sitting in Abuja to withdraw import licenses granted to the Nigerian National Petroleum Company Limited (NNPCL), Matrix Petroleum Services Limited, AA Rano Limited, and four other companies in a lawsuit it filed to challenge  importation of refined petroleum products into Nigeria 

The Dangote Refinery who claimed in the suit that the refined petroleum products being imported, were already being produced domestically without shortages, 

 is also demanding ₦100bn in damages from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The refinery alleged that the NMDPRA has unlawfully continued to issue import licenses to the NNPCL, Matrix Energy, and others for products like diesel and jet fuel, despite Dangote’s production capacity exceeding Nigeria’s current daily consumption of these products 

The defendants in the case include NMDPRA, NNPCL, A.Y.M Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited 

In its originating summons, Dangote argued that the NMDPRA has violated sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing import licenses under circumstances where no product shortfall exists.

The refinery contended that such licenses should only be granted when there is a demonstrated need for imported products.

The affidavit from Dangote Refinery Group stated that the import licenses issued to other companies are detrimental to Dangote’s business, which has invested billions of dollars into production. The company claimed that these actions have resulted in a lack of patronage for Dangote’s products.

The group alleged that NMDPRA has threatened to impose a 0.5% levy on Dangote’s wholesale transactions, which contravened statutory provisions that restrict such levies on transactions within free zones, arguing that the establishment of free zones aims to encourage competition and attract foreign investment.

Dangote’s legal team asserted that the situation necessitated judicial intervention to prevent ongoing violations of statutory provisions favouring certain entities over others