The Federal High Court Justice Abuja rejected NNPCL’s attempt to block Dangote refinery lawsuits.
A ruling from the Federal High Court of Abuja rejects preliminary objections from the National Petroleum Corporation Limited (NNPCL) in which a lawsuit against Dangete Petroleum Refinery and Petrochemical Chemical FZE has been filed.
The lawsuit filed by the Dangote refinery challenged NNPCL and other companies to issue petroleum products import licenses to NNPCL and other companies, and alleged that those imports undermine domestic production capacity.
Background of the case
Dangote Petroleum Refinery is a key player in the Nigerian oil sector, filed legal proceedings against NMDPRA, NNPCL and five other oil companies, including Aym Shafa Limited, AA Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited and Matrix Petroleum Services Limited. Dangote refinery believes that the continued release of import licenses for products such as automotive gasoline (AGO) and JET-A1 fuel is unreasonable given its ability to meet domestic demand without deficiencies.
Through its legal representative, Ogwu Onoja of Dangot Refinery, the court urged the court to cancel the import license issued by NMDPRA to NNPCL and five other companies.
It also requires courts to declare NMDPRA (PIA) in violation of sections 317 (8) and (9) of the Petroleum Industry Act to issue licenses to import import licenses for petroleum products, which can only issue such licenses in the event of shortage of petroleum products.
The Dangote refinery also demands 100 billion in compensation for NMDPRA as it is said that import licenses and imports of petroleum products and other relief to NNPCL are continued to be issued to five companies.
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In competition for the case, NNPCL tried to dismiss the lawsuit on procedural grounds, believing that the court lacked jurisdiction, and the Dangote refinery did not exhaust internal dispute resolution mechanisms before approaching the judiciary.
Furthermore, NNPCL highlighted the wrong title in the lawsuit, pointing out that it was wrongly called “Nigeria National Petroleum Corporation Limited” rather than its correct name “Nigeria National Petroleum Corporation Limited”.
However, Justice Inyang Ekwo rejected NNPCL’s objection and rules that the application was incompetent. The judge stressed that the NNPCL should defend itself in the form of an anti-devote so as to initiate the process at the Danjit Refinery before objection was raised.
Justice Ekwo further clarified that even in appeals, procedural errors, such as liability for errors, can be corrected at any stage of any legal process.
The ruling allows lawsuits at the Dangote refinery and potentially reshapes the regulatory landscape of the Nigerian oil sector. The case highlights the tension between promoting domestic refining capacity and managing imports of petroleum products.
Meanwhile, analysts pointed out that favorable outcomes at the Dangote refinery could lead to stricter import controls, encourage more reliance on local production and affect the operations of companies that rely on import licenses.
