Justice Ekwo of Federal High Court Abuja has dismissed NNPCL’s attempt to halt Dangote Refineries lawsuit against them.
A ruling from the Federal High Court in Abuja has dismissed the Nigerian National Petroleum Company Limited’s (NNPCL) preliminary objection to a ₦100 billion lawsuit filed by Dangote Petroleum Refinery and Petrochemicals FZE.
The lawsuit filed by Dangote Refinery challenges the issuance of petroleum product import licenses by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to NNPCL and other companies, alleging these imports undermine domestic production capabilities.
Background of the case
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Dangote Petroleum Refinery which is a key player in Nigeria’s oil sector, initiated a legal action against NMDPRA, NNPCL, and five other oil companies which includes AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited. Dangote Refineries argued that the continued issuance of import licenses for products like Automotive Gas Oil (AGO) and Jet-A1 fuel is unjustified, given its capacity to meet domestic demand without shortfalls.
Through it’s Legal representative, Ogwu Onoja, SAN, Dangote Refineries urged the court to nullify import licences issued by NMDPRA to the NNPCL and the five other companies.
It also sought that the court should declare NMDPRA in violation of Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licences for the importation of petroleum products insisting that such licences are only to be issued in circumstances where there is a petroleum product shortfall.
Dangote Refineries also demanded a ₦100 billion slam in damages against NMDPRA for allegedly continuing to issue import licences to NNPCL and the five companies to import petroleum products and other reliefs.
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Contesting against the case, NNPCL sought to have the lawsuit dismissed on procedural grounds, arguing that the court lacked jurisdiction and that Dangote Refinery had not exhausted internal dispute resolution mechanisms before approaching the judiciary.
In addition, NNPCL highlighted a misnomer in the suit, pointing out that it was incorrectly referred to as “Nigerian National Petroleum Corporation Limited” instead of its correct name, “Nigerian National Petroleum Company Limited.”
However, Justice Inyang Ekwo rejected NNPCL’s objections and rules that the application was incompetent. The judge emphasized that NNPCL should have filed a defense in the form of a counter-affidavit to Dangote Refinery’s originating process before raising an objection.
Justice Ekwo further clarified that procedural errors, such as misnaming, can be corrected at any stage of legal proceedings, even on appeal.
This ruling allows Dangote Refinery’s lawsuit to proceed, potentially reshaping the regulatory landscape of Nigeria’s oil sector. The case underscores the tension between promoting domestic refining capabilities and managing petroleum product imports.
Meanwhile, analyst have noted that a favourable outcome for Dangote Refinery could lead to stricter import controls, encouraging greater reliance on local production and impacting the operations of companies dependent on import licenses.
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