Dangote Refinery says it has terminated a widely reported case it instituted against the Nigerian National Petroleum Corporation Limited (NNPCL) and five other companies over importation of petroleum products.
The company sought N100 billion in damages against some of the concerned agencies.
NMDPRA for allegedly continuing to issue import licences to NNPCL and the five companies for importing petroleum products.
The other five companies are Aym Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited and Matrix Petroleum Services Limited.
Dangote Refinery, in a suit marked: FHC/ABJ/CS/1324/2024 and filed by Ogwu Onoja, SAN, before Justice Inyang Ekwo, had sued Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and NNPCL as 1st and 2nd defendants.
Also listed as 3rd to 7th defendants respectively in the originating summons dated Sept. 6 are Aym Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.
The company equally sought a N100 billion in damages against NMDPRA for allegedly continuing to issue import licences to NNPCL and the five companies for importing petroleum products.
These it said are Automotive Gas Oil (AGO) and Jet Fuel (aviation turbine fuel) into Nigeria, “despite the production of AGO and Jet-A1 that exceeds the current daily consumption of petroleum products in Nigeria by the Dangote Refinery.”
The plaintiff prayed the court to declare that NMDPRA is allegedly in violation of Sections 317(cool and (9) of the Petroleum Industry Act (PIA) by issuing licences for the importation of petroleum products.
However, as Nigerians were reacting to the development, Anthony Chiejina, Group Chief Branding and Communications Officer of Dangote Group, clarified that the suit is not new.
“This is an old issue that started in June and culminated in a matter being filed on September 6, 2024.”
“Currently, the parties are in discussion since President Bola Tinubu’s directive on Crude Oil and Refined products sales in Naira Initiative, which was approved by the Federal Executive Council (FEC).
“We have made tremendous progress in that regard and events have overtaken this development. No party has been served with court processes and there is no intention of doing so. We have agreed to put a halt to the proceedings.
Originally, in addition to a restraining order against the import licenses of the affected companies, the plaintiff sought “General damages in the sum of N100,000,000,000 against the 1st Defendant (NMDPRA) and an order of court directing the 1st Defendant to seal off all tank farms, storage facilities, warehouses, and stations used by the defendants for the storage of all refined petroleum products imported into Nigeria.”
Other reliefs partly sought by the plaintiff are as follows:
A declaration that by the provisions of Section 8(1) of the Nigerian Export Processing Zone Act, Sections 23(h) and 55(1) of the Companies Income Tax Act (CIT Act), Paragraph 6 of the Second Schedule to the CIT Act, Regulation 54(2)(a)(i) of the Dangote Industries Free Zone Regulation 2020, and the Finance Act, the plaintiff, being an entity duly registered 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 on the plaintiff 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 favor of the Midstream Downstream Gas Infrastructure Fund (MDGIF).
An order of mandatory injunction directing the 1st Defendant to withdraw immediately all import licenses issued to the 2nd-7th defendants and other companies other than the plaintiff and other local refineries for the purpose of 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 favor of MDGIF or any other levy or sum against the plaintiff.
What Transpired in Court
At the resumed sitting before Justice Inyang Ekwo, George Ibrahim SAN, counsel for the plaintiff, informed the judge that there is a development in the case as the parties are trying to settle.
“My lord, there is a development in this matter, which the lead counsel, James Onoja SAN, has asked me to bring to the court’s attention. At the time we were trying to serve the originating summons on the defendants, they started discussing,” he said. He requested an adjournment to allow the parties the opportunity to reach a settlement. He suggested the court should adjourn for either a possible report of settlement or a report of service.
“Case adjourned to January 20, 2025, for report,” Ekwo responded.
What You Should Know
Recall that Africa’s wealthiest man, Aliko Dangote, had announced his willingness to sell his multibillion-dollar oil refinery to the state-owned energy company, NNPC Limited. This decision came amid escalating disputes with regulatory authorities and equity partners, prompting reflection on his investment choices in Nigeria. Dangote was also seen alleging the importation of substandard petroleum products into Nigeria by others.
