The Dangote Petroleum Refinery and Petrochemicals FZE has initiated legal proceedings to invalidate all recent licences granted for the importation of petroleum products into Nigeria.
In a lawsuit filed at the Federal High Court in Abuja (suit number: FHC/ABJ/CS/1324/2024), Dangote Refinery seeks damages of N100 billion from the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The refinery accuses NMDPRA of issuing import licences to the Nigerian National Petroleum Corporation Limited (NNPCL), Matrix Petroleum Services Limited, and other firms for the importation of Automotive Gas Oil (AGO) and aviation turbine fuel, despite Dangote’s own capacity to produce these fuels in excess of the country’s current daily consumption.
Additionally, the refinery has named several other defendants in the suit, including A.Y.M. Shafa Holdings Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited. The refinery argues that the import licences violate the Petroleum Industry Act (PIA) and undermine its business interests.
The Dangote Refinery claims that its investments are being jeopardized due to NMDPRA’s failure to support local refineries as required by law. The management argues that NMDPRA’s actions directly harm its operations by allowing unnecessary importation of petroleum products.
Ahmed Hashem, the Group General Manager of Government and Strategic Relations for the refinery, submitted an affidavit in support of the suit. He explained that the import licences issued by NMDPRA are severely impacting the company, which has invested billions of US dollars. Hashem also mentioned that Dangote’s products are largely unsold, adding that NMDPRA’s threat to impose additional levies, including a 0.5% tax on wholesale transactions, contradicts the provisions governing Free Zones.
He also emphasized that Free Zones were established to promote competition, attract foreign investment, and provide tax relief. Hashem claims that international oil companies and their allies, in collaboration with the defendants, are attempting to prevent the success of Nigeria’s indigenous refinery, which could alleviate the country’s energy crisis.
Dangote Refinery is asking the court for an injunction to stop NMDPRA from issuing or renewing import licences for petroleum products to any company. The refinery also seeks several declarations, including that the import licences issued by NMDPRA contravene sections of the Petroleum Industry Act.
Furthermore, Dangote is requesting a ruling that exempts it from all federal, state, and local government taxes, levies, and rates under the Nigerian Export Processing Zone Act (NEPZA) and other relevant laws. It also demands that the court declare NMDPRA’s imposition of additional financial obligations, such as the 0.5% levy, illegal and against legislative intent.
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