Court

Court to hear Dangote Refinery’s Suit challenging Petrol Import Licenses Jan. 30

The Federal High Court in Abuja on Monday adjourned until January 30, a suit filed by Dangote Petroleum Refinery and Petrochemicals against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and six others.

The suit, marked FHC/ABJ/CS/1324/2024, was instituted by Dangote Refinery challenging the issuance of petroleum product import licenses by NMDPRA, which the plaintiff claims violates Sections 317(8) and (9) of the Petroleum Industry Act (PIA).

Trial Court judge, Inyang Ekwo granted the new date following the plaintiff’s counsel application for leave to amend the originating summons.

At resumed hearing on Monday the plaintiff’s counsel, George Ibrahim, SAN, informed the court that he could not serve the originating summons completed on the defendants due to these errors, the defendants’ counsel confirmed they had not been served and requested proper service before the case could proceed.

The plaintiff’s counsel also informed the court that the issue of settlement could also not proceed because of the same problem.

Another party that sought to be joined in the matter was asked to stand down for the time being until the issues of service are sorted out.

Dangote Refinery has argued that such licenses should only be issued in circumstances of proven shortfalls in local supply and accuses NMDPRA of failing to support local refineries asp mandated by the PIA.

In response, three major oil marketers—AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited—filed a counter-affidavit urging the court to dismiss the suit.

They argued that Dangote Refinery does not produce enough petroleum products to meet Nigeria’s daily consumption needs and that monopolizing the sector would be detrimental to the economy.

They maintained that the import licenses issued to them were lawful and in compliance with the provisions of the PIA, Federal Competition and Consumer Protection Act, and other relevant laws.

The marketers stressed that granting Dangote Refinery exclusive control over the petroleum sector would eliminate competition, drive up prices, and destabilize the country’s already fragile economy.

They warned that relying solely on Dangote Refinery for petroleum products would expose Nigerians to supply shortages and higher costs, especially in the event of operational disruptions at the refinery.

Plaintiff counsel asked for ten days to enable him serve all parties to the suit.

Justice Ekwo, after listening to parties adjourned to January 30 to enable parties complete filing and serve their processes.