Dangote Sues NNPCL and Five Fuel Marketers Over Import Controversy

Dangote Sues NNPCL And Five Fuel Marketers Over Import ControversyDangote Petroleum Refinery and Petrochemicals has filed a lawsuit against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and several major oil importers in the Federal High Court in Abuja. In suit number FHC/ABJ/CS/1324/2024, Dangote is seeking ₦100 billion in damages from NMDPRA for its continued issuance of import licenses for refined products like Automotive Gas Oil and Jet-A1 (aviation fuel).....KINDLY READ THE FULL STORY HERE▶

Dangote argues that its refinery production exceeds domestic consumption, making these imports unnecessary. However, oil marketers disagree, emphasizing that the market has been deregulated, allowing them the freedom to import or purchase from the ₦20 billion Lekki-based refinery.

In the lawsuit, Dangote also requests the cancellation of import licenses granted to Nigerian National Petroleum Corporation Limited (NNPCL), Matrix Petroleum Services Limited, A. A. Rano Limited, and four other companies. The suit alleges that these imports undermine Dangote’s operations by saturating the market with products it already produces.

The refinery contends that NMDPRA has violated the Petroleum Industry Act by issuing these licenses without evidence of product shortages. According to Ahmed Hashem, Dangote’s General Manager of Government and Strategic Relations, the imports have severely disrupted the refinery’s business, leaving its products largely unsold.

Dangote claims the regulator is neglecting its duty to support local refineries, pointing to a potential 0.5% levy on wholesale buyers, which contradicts regulations governing free zones aimed at promoting competition and attracting foreign investment. The suit accuses the defendants of conspiring to undermine Nigeria’s indigenous refining efforts.

Among the reliefs sought from the court, Dangote is asking for declarations confirming its exemption from federal, state, and local taxes, as outlined in various Nigerian laws.

During a recent hearing, Dangote’s counsel requested an adjournment to explore a possible settlement, with a report due on January 20, 2025. NMDPRA spokesperson George Ene-Ita stated that the authority had not yet been served any summons related to the lawsuit. Meanwhile, marketers expressed surprise at the legal action, noting that no laws prohibit the importation of petroleum products.

Sources within the Dangote refinery indicated that the case is not new and that developments have since made it less relevant, with intentions to withdraw the lawsuit in January. The Group’s Chief Branding and Communications Officer clarified that the lawsuit originated from issues dating back to June, and discussions are currently underway to address the situation following recent government directives.

For more information on this article and other related posts from Bushradiogist, please join our WhatsApp channel by clicking this link https://whatsapp.com/channel/0029VaUumOODTkK7AZL1Fw3o. For advertisement inquiries only, kindly send a message to 090 1907 0863 on WhatsApp.