Three major oil companies—Matrix Petroleum Services Limited, A.A. Rano Limited, and AYM Shafa Limited—ask the Federal High Court in Abuja to affirm that only the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian National Petroleum Corporation Limited (NNPCL) have the legal mandate to determine petroleum shortfalls in Nigeria. This position challenges any role of Dangote Refinery in making such assessments.
Their request is detailed in a written address attached to their counter-affidavit dated November 5, 2024, where the companies seek to prevent NMDPRA from withdrawing or reviewing their import licenses. Lead counsel Ahmed Raji SAN argues that, under Section 317(9) of the Petroleum Industry Act (PIA), only NMDPRA, alongside NNPCL, holds the statutory authority to assess the availability of petroleum products in the country.
Response to Dangote Refinery’s Legal Challenge
Dangote Petroleum Refinery and Petrochemicals FZE recently files a lawsuit aiming to nullify the import licenses granted to NNPCL and other entities for importing refined petroleum products, claiming these imports undermine its domestic production capabilities. In response, the three oil firms urge Justice Inyang Ekwo to dismiss the suit, emphasizing that safeguarding energy security is a global standard.
Raji further argues that Dangote Refinery lacks the authority to declare a sufficient supply of petroleum products in Nigeria. He contends that the refinery does not produce the necessary volume of petroleum products to meet the nation’s consumption needs. The companies’ legal team maintains that other qualified entities with experience in international petroleum trading should retain their import licenses, as per the PIA.
Additionally, Raji notes that Dangote’s lawsuit invites the court to re-evaluate NMDPRA’s administrative decisions, a move that should be pursued through a judicial review process as stipulated by Order 34 of the Federal High Court Civil Procedure Rules, 2019. Judicial review, he emphasizes, focuses on the legality, not the merits, of public authority decisions.
The Federal High Court schedules the case for hearing on January 20, 2025.
Dangote Group’s Response and Clarifications
Following the public disclosure of Dangote’s lawsuit, the company issues a statement on October 21, 2024, describing the issue as “an old matter.” Dangote Group’s communications officer, Anthony Chiejina, confirms plans to withdraw the suit by January 2025. According to Chiejina, discussions are ongoing in line with President Bola Tinubu’s directive on crude oil and refined product transactions in Naira, with significant progress being made.
The statement clarifies that no party has been served court documents, and no legal orders are issued against any involved parties. Dangote Group expects to formally withdraw the case next year.
Earlier reports indicate that Aliko Dangote, Africa’s richest man, considers selling his multibillion-dollar refinery to NNPC Limited. This potential sale follows ongoing disputes with regulatory bodies and partners, raising questions about his investment decisions in the Nigerian energy sector. Additionally, Dangote previously criticizes the importation of substandard petroleum products by other entities.
The federal government recently allows marketers to purchase petroleum products directly from Dangote Refinery, following NNPC’s exit as the intermediary.
