This legal battle centers on a suit filed by Dangote Refinery against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and several other companies, including the Nigerian National Petroleum Company Limited (NNPCL). Dangote Refinery seeks to challenge the importation licenses granted by NMDPRA to NNPCL and five oil companies, arguing that the issuance of these licenses violates the Petroleum Industry Act (PIA), particularly sections 317(8) and (9), which restricts the issuance of such licenses to situations where there is a petroleum product shortfall.
Dangote Refinery is requesting the court to declare these licenses invalid and is also seeking damages of N100 billion, alleging that the continued issuance of these licenses harms its interests and disrupts fair competition in the petroleum sector. The refinery also argues that NMDPRA acted wrongly by issuing these licenses, as Dangote Refinery asserts its own capacity to meet the national demand for petroleum products.
On the other hand, the NNPCL is challenging the suit on the grounds that the Federal High Court does not have the jurisdiction to grant Dangote Refinery’s requests. They have also called for the dismissal of the suit or the removal of NNPCL as a defendant. NMDPRA, in its response, defends the issuance of the licenses, stating that it is within their mandate to issue such licenses to bridge product shortfalls and promote competition within the oil and gas industry. The agency also denies any conspiracy against Dangote Refinery.
In addition, the oil marketers involved in the case argue that granting Dangote Refinery’s request could result in a harmful monopoly in Nigeria’s oil sector, which could have detrimental effects on the industry and the nation.
The court has yet to rule on the matter, with the trial judge, Justice Inyang Edem Ekwo, setting a date for March 18, 2025, to deliver a ruling on the case. The outcome of this case will likely have significant implications for Nigeria’s oil industry, particularly with regard to competition and the regulation of petroleum imports.
