Dangote Refinery sues NMDPRA for issuing import licenses to NNPCL, Matrix, demands N100bn

Dangote Petroleum Refinery and Petrochemicals has filed a lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) at the Federal High Court, Abuja, and demanded N100 billion in damages.

The management of the refinery sued NMDPRA for issuing import licenses to Nigerian National Petroleum Company Limited (NNPCL), Matrix Petroleum Services Limited, AA Rano Limited, and four other companies to import petroleum products like Diesel and JET AI Fuel.

In the suit, the operators of the N20 billion refinery asked the court to void the import licenses granted to the defendants for diesel and jet fuel importation.

Dangote Refinery currently produces, and exceeds Nigeria’s current daily consumption of the products.

In its originating summons, Dangote Refinery argued that the NMDPRA 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 operators contended that such licenses should only be granted when there is a demonstrated need for imported products.

READ ALSO: Hope of cheaper petrol rises as Dangote Refinery, independent marketers hold talks on crude lifting

They asked the court to order NMDPRA to seal off all facilities used by the defendants for storing imported refined petroleum products.

The operators alleged that NMDPRA 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.

At Monday’s proceeding, Dangote’s legal team informed the court of ongoing discussions between the parties aimed at settling the matter and asked for an adjournment to facilitate the negotiations.

Justice Inyang Ekwo adjourned the case to January 20, 2025, for the report.

By: Babajide Okeowo

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