Dangote Refinery withdraws suit against NNPCL, others

The management of Dangote Refinery has reacted to a report that it approached a court to stop the Nigerian National Petroleum Company Limited (NNPCL) and others from continuing fuel importation.

Dangote Refinery, in a statement signed by the Group Chief branding and Communication Officer of Dangote Industries Limited, Anthony Chiejina, yesterday, debunked the report, saying it “is an old issue that started in June and culminated in a matter being filed in September 6, 2024.”

It explained that since President Bola Tinubu’s directive for crude oil for Naira initiative, events had overtaken the development.

“Presently, the parties are in discussion since the President 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,” the statement said.

Continuing, the Dangote Refinery clarified that it neither served any party with the court process nor intended to do so. It, however, expressed readiness to withdraw the case when it comes up in January 2025.

“We have agreed to put a halt to the proceedings. It is important to stress that no orders have been made and there are no adverse effect on any party. We understand that once the matter comes up January 2025, we would be in a position to formally withdraw the matter in court.”

The refinery had reportedly approached the Abuja branch of the Federal High Court, seeking to annul the import licences granted to the NNPCL and others.

Management of the private refinery reportedly informed the court that the NNPCL and the other companies obtained the licence to import petroleum products “despite the production of Automotive Gas Oil (AGO) and Jet-A1 that exceeded the daily consumption of petroleum products in Nigeria by the Dangote Refinery.”

The case, which also sought N100 billion in damages from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), was marked FHC/ABJ/CS/1324/2024.

Dangote Refinery also alleged that NMDPRA had been improperly granting import licences to the companies for the importation of petroleum products, including AGO and jet fuel, into Nigeria.

The defendants were NMDPRA, NNPCL, AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited and Matrix Petroleum Services Limited.

Counsel to Dangote Refinery, Ogwu Onoja (SAN), had wanted the court to determine that NMDPRA was purportedly contravening Sections 317(8) and (9) of the Petroleum Industry Act (PIA), by granting licences for the importation of petroleum products.

Such licences, Dangote Refinery said, ought only to be granted to the firms in situations of petroleum products shortage.

The refinery had demanded the court to recognise that NMDPRA was failing to fulfil its mandated duties under the PIA by not supporting local refineries like Dangote Refinery.

It expressed worry that the import licences issued to other companies by NMDPRA for the importation of AGO and Jet-A1 were hindering its operations, in which it invested billions of United States dollars.

The Refinery said it observed that its products had been significantly overlooked as a result of the purported actions of NMDPRA.

It claimed that NMDPRA threatened to enforce a 0.5 per cent levy on the refinery concerning wholesalers and off-takers, and another 0.5 per cent levy on wholesale transactions directed to the Midstream and Downstream Gas Infrastructure Fund (MDGIF), as stated in a letter dated June 10, 2024.

It said the course of action contradicts statutory provisions that regulate such levies.