By Hassanat Adebowale
A Federal High Court in Abuja has scheduled March 18 for the ruling on the Nigeria National Petroleum Company Limited (NNPCL)’s preliminary objection against a lawsuit filed by the Dangote Petroleum Refinery and Petrochemicals FZE. The dispute centers around an oil import license.
Justice Inyang Ekwo set the date after hearing arguments from NNPCL’s counsel, Ademola Abimbola, SAN, and Dangote Refinery’s lawyer, John Ibrahim, SAN. Both attorneys presented their cases and adopted their processes.
During Wednesday’s session, Abimbola indicated readiness to proceed with the hearing of their objection. Ibrahim confirmed they had filed a counter affidavit opposing the objection and were prepared to argue their position.
Abimbola, in presenting the preliminary objection, argued that the court lacked jurisdiction to hear the case or, alternatively, sought the removal of NNPCL from the lawsuit. He contended that the lawsuit, dated and filed on Nov. 15, 2024, was supported by an affidavit and written address. Upon receiving the refinery’s counter affidavit, Abimbola submitted a further affidavit and a reply on points of law on Feb. 3.
Ibrahim, in response, urged the court to dismiss NNPCL’s preliminary objection, arguing it was unnecessary and lacked merit. He supported his argument with a five-paragraph counter affidavit filed on Jan. 31.
After considering the arguments, Justice Ekwo adjourned the matter to March 18 for a ruling. Legal representatives present included Emeka Akabuogu for the 1st defendant, Ahmed Raji, SAN, for the 3rd, 4th, and 7th defendants, and Divine Oguru for the 5th and 6th defendants. Olanrewaju Oshinaike appeared for the Federal Competition and Consumer Protection Commission, which seeks to join the suit.
Dangote Refinery had initiated the lawsuit against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and NNPCL, naming them as the 1st and 2nd defendants, respectively. Additional defendants include AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.
Dangote Refinery’s lawsuit seeks to nullify import licenses issued by NMDPRA to NNPCL and the other companies for importing refined petroleum products. The refinery argues that NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licenses without evidence of a petroleum product shortfall. Additionally, the refinery is seeking N100 billion in damages for the alleged wrongful issuance of licenses.
NNPCL’s preliminary objection asserts that the lawsuit is premature and lacks a valid cause of action, stating that the court lacks jurisdiction. The NNPCL also highlighted a discrepancy, noting that the refinery sued a non-existent entity, “Nigeria National Petroleum Corporation Limited.”
NMDPRA, in its counter affidavit, argued that the refinery’s current production does not meet national petroleum product sufficiency requirements, justifying the issuance of import licenses to bridge product shortfalls. The agency also emphasized its mandate to promote competition and prevent monopolistic practices in the oil and gas sector.
The oil marketers involved, including AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited, argued that granting Dangote’s application would harm the oil sector and that there was no evidence to support the refinery’s claims.
Under the law, Section 317 of the Petroleum Industry Act (PIA) 2021 regulates petroleum product importation. It permits such activity only when local refining capacity cannot meet demand. The Federal Competition and Consumer Protection Act (FCCPA) 2018 also prohibits monopolistic practices that could stifle competition. The court’s ruling on March 18 will determine whether NMDPRA’s licensing decisions align with these legal provisions or if Dangote Refinery’s claims hold legal merit.
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