The ongoing legal battle between Dangote Petroleum Refinery and the Nigeria National Petroleum Corporation Limited (NNPCL) has escalated, with the NNPCL filing a preliminary objection to block the lawsuit seeking to grant Dangote Refinery exclusive rights to import petroleum products into Nigeria.
In a court filing, NNPCL’s legal team, led by senior advocate Kehinde Ogunwumiju, SAN, described the case as “incompetent” and argued that it should not be allowed to proceed. The case, which could reshape Nigeria’s oil sector, centers on whether Dangote Refinery should have the sole right to import refined petroleum products into the country.
Dangote Refinery, one of the largest and most influential companies in Africa, has moved to invalidate NNPCL’s license to import petroleum products, citing its ability to meet Nigeria’s domestic fuel needs through its refinery operations. In its claim, Dangote argues that there is no reason for other companies to continue importing petroleum products into the country when its refinery can meet the demand.
The company is also questioning the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for issuing import licenses to NNPCL and other oil marketers despite Dangote’s capacity to produce enough products locally.
The suit, marked FHC/ABJ/CS/1324/2024, names NMDPRA, NNPCL, and several other major oil marketers as defendants. Dangote Refinery is seeking damages of N100 billion against NMDPRA for allegedly violating sections of the Petroleum Industry Act (PIA) by issuing import licenses to competitors.
Dangote’s legal team has also requested the court to stop NMDPRA from issuing further import licenses, to seal tank farms and storage facilities of other oil marketers, and to remove all licenses given to them for importing petroleum products. Furthermore, the refinery is seeking to stop NMDPRA from imposing levies on its business operations.
In response to the legal action, NNPCL has filed a strong objection, labeling Dangote’s suit as “premature” and questioning the jurisdiction of the court to entertain the case. The state-run corporation argues that the suit lacks legal merit and contends that Dangote does not have the standing to challenge the importation rights of other companies.
“The plaintiff’s suit discloses no cause of action,” NNPCL’s legal team argued. They also pointed out that Dangote Refinery had named a non-existing entity—’Nigeria National Petroleum Corporation Limited (NNPC)’—as a defendant in the case, an issue that could undermine the legitimacy of the case.
The NNPCL insists that it is a separate entity from the now-restructured NNPC, which had been dissolved and replaced by NNPCL.
The lawsuit has sparked intense debate within Nigeria’s petroleum sector. The case raises critical questions about the future of fuel importation and whether Dangote Refinery should be granted a monopoly on the industry. If successful, Dangote’s bid could have far-reaching consequences for competition within the Nigerian oil market, leading to higher fuel prices and limited options for consumers.
Oil marketers who are defendants in the case, such as AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited, have already expressed their opposition to the suit. They argue that granting Dangote Refinery exclusive rights to import refined petroleum products could be disastrous for Nigeria’s economy.
“These marketers believe that granting Dangote monopoly powers in the oil sector would kill competition, drive up fuel prices, and worsen the economic hardships already facing Nigerians,” said one of the defendants.
The defendants further warn that monopoly control of Nigeria’s oil imports could destabilize the economy. The country’s oil industry, they argue, would lose its competitive pricing structure, which could lead to higher costs for fuel, impacting businesses and households alike.
In their defense, the oil marketers also argue that they are legally entitled to import petroleum products into the country. They are calling on the court to reject Dangote’s efforts to monopolize the sector, insisting that their operations are in full compliance with the Petroleum Industry Act.
As the legal battle continues, the outcome remains uncertain. The case, which has attracted significant attention from stakeholders in Nigeria’s oil sector, is scheduled to resume in January 2025. Justice Inyang Ekwo has adjourned the matter to allow both parties to explore the possibility of an out-of-court settlement.
Dangote Refinery has expressed its willingness to withdraw the suit if a resolution can be reached, signaling a potential end to the legal wrangling. However, if the case proceeds, the court’s decision could reshape Nigeria’s petroleum landscape and determine whether Dangote Refinery will gain unprecedented control over fuel importation in the country.
