Dangote seeks court order to revoke license to other firms

The Dangote Petroleum Refinery and Petrochemicals FZE has initiated legal action seeking a court order to invalidate recent licenses issued for the importation of petroleum products into Nigeria. The lawsuit, filed at the Federal High Court in Abuja under case number FHC/ABJ/CS/1324/2024, also seeks N100 billion in damages from the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Dangote Refinery claims that the NMDPRA improperly issued import licenses to entities like the Nigeria National Petroleum Corporation Limited (NNPCL) and Matrix Petroleum Services Limited, allowing them to import products like Automotive Gas Oil (AGO) and Jet Fuel, despite the refinery producing more than the current daily consumption of these products in Nigeria.

The refinery’s complaint names several defendants, including NNPCL and others involved in the import licenses, arguing that these licenses violate the Petroleum Industry Act (PIA). The refinery’s management expressed concern that their significant investments could be at risk without court intervention, as they believe NMDPRA is failing to support local refineries.

Ahmed Hashem, the Group General Manager of Government and Strategic Relations for Dangote, stated that the NMDPRA’s actions are harming their business, which has invested billions of dollars. He mentioned that the refinery’s products are underutilized due to these import licenses. Additionally, he noted that NMDPRA threatened to impose a 0.5% levy on the refinery’s wholesale transactions, contradicting statutory limits on such levies within Free Zones.

Hashem accused NMDPRA of participating in a conspiracy with International Oil Companies to undermine the indigenous refinery and its potential to address Nigeria’s energy crisis.

Dangote is requesting the court to issue an injunction against NMDPRA from issuing or renewing import licenses to the other defendants. The refinery is also seeking declarations that NMDPRA’s actions violate the PIA and that as a registered Free-Zone Enterprise, it is exempt from all taxes and levies. Furthermore, they argue that imposing additional levies contradicts several legislative acts, including the Nigerian Export Processing Zone Act and the Companies Income Tax Act.