NNPCL Challenges Dangote Refinery’s Lawsuit Over Petroleum Supply Rights
The Nigeria National Petroleum Corporation Limited (NNPCL) has countered a legal suit initiated by Dangote Petroleum Refinery and Petrochemicals FZE, seeking exclusive rights to supply petroleum products across the country. NNPCL, represented by its legal team led by Kehinde Ogunwumiju, SAN, described the lawsuit as “incompetent” and urged the Federal High Court in Abuja to dismiss it.
Dangote Refinery’s Claims
Dangote Refinery filed the suit, marked FHC/ABJ/CS/1324/2024, citing multiple defendants, including the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), NNPCL, and prominent oil marketers such as AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited. The refinery argued that the NMDPRA breached Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing import licenses to these parties despite the refinery’s capacity to meet Nigeria’s petroleum product demands.
Among its prayers, Dangote Refinery sought a court injunction to:
- Restrain NMDPRA from issuing or renewing import licenses to the defendants.
- Direct NMDPRA to revoke existing licenses for petroleum importation.
- Seal facilities used for storing imported refined petroleum products.
Additionally, the refinery demanded ₦100 billion in damages, citing the issuance of these licenses as harmful to its operations.
NNPCL’s Defense
In its preliminary objection, NNPCL challenged the lawsuit on procedural and substantive grounds, stating:
- The suit is premature and lacks a valid cause of action.
- The court has no jurisdiction to hear the case.
- Dangote Refinery lacks the legal standing (locus standi) to seek such reliefs.
Furthermore, NNPCL emphasized that the lawsuit incorrectly identified it as “Nigeria National Petroleum Corporation Limited (NNPC),” an entity that no longer exists. The corporation clarified that it operates under the name NNPCL following its transition to a limited liability company.
Oil Marketers Push Back
The oil marketers named in the suit—AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited—also filed a counter-affidavit. They urged the court to dismiss the case, arguing that Dangote Refinery’s attempts to monopolize the sector would harm Nigeria’s oil industry. They maintained that their import licenses were lawfully issued under the PIA and other relevant laws, meeting all necessary requirements.
Court’s Position
Justice Inyang Ekwo adjourned the matter to January 20, 2025, to allow parties to explore an out-of-court settlement. Meanwhile, Dangote Refinery indicated its willingness to withdraw the suit if a resolution could be reached.
Broader Implications
This case underscores ongoing tensions in Nigeria’s energy sector as stakeholders vie for market dominance. It raises critical questions about competition, regulatory oversight, and the balance between fostering local production and meeting national demand through imports.
The outcome of this dispute will likely shape the future dynamics of Nigeria’s petroleum supply chain and regulatory framework.
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