₦airaland Forum

Dangote Petroleum Refinery and Petrochemicals FZE has asked the Federal High Court in Abuja to void import licenses issued to the Nigeria National Petroleum Corporation Limited (NNPC), Matrix Petroleum Services Limited, A. A. Rano Limited, and four other companies for the purpose of importing refined petroleum products that are already being produced by Dangote without shortfalls.

In suit number FHC/ABJ/CS/1324/2024, Dangote Refinery is also seeking N100 billion in damages against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for allegedly continuing to issue import licenses to NNPCL, Matrix, and other companies for importing petroleum products such as Automotive Gas Oil (AGO) and Jet Fuel (aviation turbine fuel) into Nigeria, “despite the production of AGO and Jet-A1 that exceeds the current daily consumption of petroleum products in Nigeria by the Dangote Refinery.”

Joined as defendants in the case are NMDPRA, NNPCL, Aym Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited (1st to 7th defendants).


Dangote Refinery’s Claims in Court
In its originating summons dated September 6, 2024, and exclusively seen by Nairametrics, the plaintiff’s lawyer, Ogwu James Onoja, SAN, asked the court to declare that NMDPRA is allegedly in violation of Sections 317( and (9) of the Petroleum Industry Act by issuing licenses for the importation of petroleum products.

He stated that such licenses should only be issued in circumstances where there is a petroleum product shortfall. He also urged the court to declare that NMDPRA is in violation of its statutory responsibilities under the Petroleum Industry Act (PIA) for not encouraging local refineries such as Dangote Refinery.

In an affidavit deposed by Ahmed Hashem, the Group General Manager of Government and Strategic Relations at Dangote Refinery, he submitted that the import licenses granted to other companies by NMDPRA for the importation of AGO and Jet-A1 are crippling the plaintiff’s business, to which it has committed substantial financial resources in billions of US dollars. He noted that the plaintiff’s products are largely left unpatronized due to the alleged actions of NMDPRA

He stated that NMDPRA has threatened to impose and demand a 0.5% levy on the plaintiff on wholesales and off-takers, as well as another 0.5% levy on wholesales to the Midstream and Downstream Gas Infrastructure Fund (MDGIF) via a letter dated June 10, 2024, contrary to statutory provisions that limit the implementation of levies on transactions within Free Zones.

He emphasized that the foundational purpose of establishing Free Zones is to foster competition, attract foreign investment, and create tax havens.
He further stated that there is an alleged grand conspiracy and concerted effort by International Oil Companies and interests, in conjunction with the defendants, who are unhappy that Nigeria has an indigenous refinery ready to solve the lingering energy crisis and save the economy.

“The intervention of the Honourable Court has become necessary in order to stem the incessant violation of statutory provisions by the 1st Defendant in favor of other entities such as the 2nd to 7th defendants,” the plaintiff stated.
The refinery’s legal team stated that the plaintiff is greatly distressed, and its investments risk being jeopardized unless the Honourable Court intervenes.

He sought an order of injunction restraining the 1st Defendant from further issuing and/or renewing import licenses to the 2nd to 7th defendants or other companies for the purpose of importing petroleum products.In addition to a restraining order against the import licenses of the affected companies, the plaintiff sought “General damages in the sum of N100,000,000,000 against the 1st Defendant (NMDPRA) and an order of court directing the 1st Defendant to seal off all tank farms, storage facilities, warehouses, and stations used by the defendants for the storage of all refined petroleum products imported into Nigeria.”

Other reliefs partly sought by the plaintiff are as follows:

A declaration that by the provisions of Section 8(1) of the Nigerian Export Processing Zone Act, Sections 23(h) and 55(1) of the Companies Income Tax Act (CIT Act), Paragraph 6 of the Second Schedule to the CIT Act, Regulation 54(2)(a)(i) of the Dangote Industries Free Zone Regulation 2020, and the Finance Act, the plaintiff, being an entity duly registered as a Free-Zone Enterprise, is exempted from all federal, state, and local government taxes, levies, and other rates.

A declaration that it is against the NEPZA Act, CIT Act, Finance Act, and Dangote Industries Free Zone Regulation 2020, as well as legislative intent, for the 1st Defendant to impose or threaten to impose on the plaintiff an additional financial obligation of a 0.5% levy meant for off-takers of petroleum products directly and an additional 0.5% wholesale levy in favor of the Midstream Downstream Gas Infrastructure Fund (MDGIF).

An order of mandatory injunction directing the 1st Defendant to withdraw immediately all import licenses issued to the 2nd-7th defendants and other companies other than the plaintiff and other local refineries for the purpose of importing refined petroleum products into Nigeria.

An order of injunction restraining the 1st Defendant from imposing and demanding a 0.5% levy meant for off-takers of petroleum products directly and an additional 0.5% wholesale levy in favor of MDGIF or any other levy or sum against the plaintiff.

What Transpired in Court
At the resumed sitting before Justice Inyang Ekwo, George Ibrahim SAN, counsel for the plaintiff, informed the judge that there is a development in the case as the parties are trying to settle.

“My lord, there is a development in this matter, which the lead counsel, James Onoja SAN, has asked me to bring to the court’s attention. At the time we were trying to serve the originating summons on the defendants, they started discussing,” he said. He requested an adjournment to allow the parties the opportunity to reach a settlement. He suggested the court should adjourn for either a possible report of settlement or a report of service.

“Case adjourned to January 20, 2025, for report,” Ekwo responded.

What You Should Know
Recall that Africa’s wealthiest man, Aliko Dangote, had announced his willingness to sell his multibillion-dollar oil refinery to the state-owned energy company, NNPC Limited. This decision came amid escalating disputes with regulatory authorities and equity partners, prompting reflection on his investment choices in Nigeria. Dangote was also seen alleging the importation of substandard petroleum products into Nigeria by others.

Nairametrics previously reported that the federal government later granted marketers the license to buy petroleum products directly from Dangote refinery following NNPC’s decision to quit as the middleman between the two parties.

Source: https://nairametrics.com/2024/10/21/dangote-refinery-asks-court-to-void-import-licenses-of-nnpcl-matrix-and-four-others-in-n100-billion-case/

This is just shameful… I do hope the issues are resolved amicably.

..the guru of economics..Thief'nubu applying Ojuelegba policies & emilokonomics..

" when Dangote refinery come on board, fuel price will come down..the naira will appreciate..forex will be saved..as there will be no fuel importation..& foreign reserves will increase"

..these were the lies, deceit & propaganda that was pushed into social media by BATist..

..there is confusion everywhere as prices are not coming down..naira depreciating faster..dangote lamenting after taking FG to court..

..where is anuis from hell..come chant toh..

Dangote has a valid claim if indeed NMDPRA is in violation of the new PIA act by issuing those licenses. Why must we continue to import just to enrich a few fat cats to the detriment of Nigerians?
The man needs to fight for his business before they cripple him. Let the Court decide.

The monster we created

He want to strangle Nigeria using the court. Doesn't he want competition at all?

Aliko Dangote is a man that has the interest of Nigeria at heart.

God bless him.

chicfarmer:
Dangote has a valid claim if indeed NMDPRA is in violation of the new PIA act by issuing those licenses. Why must we continue to import just to enrich a few fat cats to the detriment of Nigerians?
The man needs to fight for his business before they cripple him. Let the Court decide.

Fighting for his business is by requiring an all-out ban on imports— kill the competition by way of banning imports? I don't agree at all! Dangote should instead woo buyers so they can come buy from him rather than consume imported PMS. This is like replacing one monster with another monster. E be like say this man no understand any other language other than monopoly.

This Dangote is a very dangerous and useless human being. Up till today he has not reveal how much he sells fuel to Nigerians.

Very useless and fraudulent entrepreneur

EmeeNaka:
He want to strangle Nigeria using the court. Doesn't he want competition at all?

I agree with you that there should be competition but certainly not with these selfish importers. Their aim is to undercut and kill that refinery and then turn around to deal with Nigerians.
If they love their country so much why haven't these importers who have been fleecing us through subsidy all these years not been able to pool their resources to build a refinery?
Besides, Dangote has a right to go to court if he feels that NMDPRA has violated the PIA act by issuing licenses to these importers.

Toh

Let the court decide.

Competition is good for the consumers

SmartPolician:
Dangote Petroleum Refinery and Petrochemicals FZE has asked the Federal High Court in Abuja to void import licenses issued to the Nigeria National Petroleum Corporation Limited (NNPC), Matrix Petroleum Services Limited, A. A. Rano Limited, and four other companies for the purpose of importing refined petroleum products that are already being produced by Dangote without shortfalls.

In suit number FHC/ABJ/CS/1324/2024, Dangote Refinery is also seeking N100 billion in damages against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for allegedly continuing to issue import licenses to NNPCL, Matrix, and other companies for importing petroleum products such as Automotive Gas Oil (AGO) and Jet Fuel (aviation turbine fuel) into Nigeria, “despite the production of AGO and Jet-A1 that exceeds the current daily consumption of petroleum products in Nigeria by the Dangote Refinery.”

Joined as defendants in the case are NMDPRA, NNPCL, Aym Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited (1st to 7th defendants).


Dangote Refinery’s Claims in Court
In its originating summons dated September 6, 2024, and exclusively seen by Nairametrics, the plaintiff’s lawyer, Ogwu James Onoja, SAN, asked the court to declare that NMDPRA is allegedly in violation of Sections 317( and (9) of the Petroleum Industry Act by issuing licenses for the importation of petroleum products.

He stated that such licenses should only be issued in circumstances where there is a petroleum product shortfall. He also urged the court to declare that NMDPRA is in violation of its statutory responsibilities under the Petroleum Industry Act (PIA) for not encouraging local refineries such as Dangote Refinery.

In an affidavit deposed by Ahmed Hashem, the Group General Manager of Government and Strategic Relations at Dangote Refinery, he submitted that the import licenses granted to other companies by NMDPRA for the importation of AGO and Jet-A1 are crippling the plaintiff’s business, to which it has committed substantial financial resources in billions of US dollars. He noted that the plaintiff’s products are largely left unpatronized due to the alleged actions of NMDPRA

He stated that NMDPRA has threatened to impose and demand a 0.5% levy on the plaintiff on wholesales and off-takers, as well as another 0.5% levy on wholesales to the Midstream and Downstream Gas Infrastructure Fund (MDGIF) via a letter dated June 10, 2024, contrary to statutory provisions that limit the implementation of levies on transactions within Free Zones.

He emphasized that the foundational purpose of establishing Free Zones is to foster competition, attract foreign investment, and create tax havens.
He further stated that there is an alleged grand conspiracy and concerted effort by International Oil Companies and interests, in conjunction with the defendants, who are unhappy that Nigeria has an indigenous refinery ready to solve the lingering energy crisis and save the economy.

“The intervention of the Honourable Court has become necessary in order to stem the incessant violation of statutory provisions by the 1st Defendant in favor of other entities such as the 2nd to 7th defendants,” the plaintiff stated.
The refinery’s legal team stated that the plaintiff is greatly distressed, and its investments risk being jeopardized unless the Honourable Court intervenes.

He sought an order of injunction restraining the 1st Defendant from further issuing and/or renewing import licenses to the 2nd to 7th defendants or other companies for the purpose of importing petroleum products.In addition to a restraining order against the import licenses of the affected companies, the plaintiff sought “General damages in the sum of N100,000,000,000 against the 1st Defendant (NMDPRA) and an order of court directing the 1st Defendant to seal off all tank farms, storage facilities, warehouses, and stations used by the defendants for the storage of all refined petroleum products imported into Nigeria.”

Other reliefs partly sought by the plaintiff are as follows:

A declaration that by the provisions of Section 8(1) of the Nigerian Export Processing Zone Act, Sections 23(h) and 55(1) of the Companies Income Tax Act (CIT Act), Paragraph 6 of the Second Schedule to the CIT Act, Regulation 54(2)(a)(i) of the Dangote Industries Free Zone Regulation 2020, and the Finance Act, the plaintiff, being an entity duly registered as a Free-Zone Enterprise, is exempted from all federal, state, and local government taxes, levies, and other rates.

A declaration that it is against the NEPZA Act, CIT Act, Finance Act, and Dangote Industries Free Zone Regulation 2020, as well as legislative intent, for the 1st Defendant to impose or threaten to impose on the plaintiff an additional financial obligation of a 0.5% levy meant for off-takers of petroleum products directly and an additional 0.5% wholesale levy in favor of the Midstream Downstream Gas Infrastructure Fund (MDGIF).

An order of mandatory injunction directing the 1st Defendant to withdraw immediately all import licenses issued to the 2nd-7th defendants and other companies other than the plaintiff and other local refineries for the purpose of importing refined petroleum products into Nigeria.

An order of injunction restraining the 1st Defendant from imposing and demanding a 0.5% levy meant for off-takers of petroleum products directly and an additional 0.5% wholesale levy in favor of MDGIF or any other levy or sum against the plaintiff.

What Transpired in Court
At the resumed sitting before Justice Inyang Ekwo, George Ibrahim SAN, counsel for the plaintiff, informed the judge that there is a development in the case as the parties are trying to settle.

“My lord, there is a development in this matter, which the lead counsel, James Onoja SAN, has asked me to bring to the court’s attention. At the time we were trying to serve the originating summons on the defendants, they started discussing,” he said. He requested an adjournment to allow the parties the opportunity to reach a settlement. He suggested the court should adjourn for either a possible report of settlement or a report of service.

“Case adjourned to January 20, 2025, for report,” Ekwo responded.

What You Should Know
Recall that Africa’s wealthiest man, Aliko Dangote, had announced his willingness to sell his multibillion-dollar oil refinery to the state-owned energy company, NNPC Limited. This decision came amid escalating disputes with regulatory authorities and equity partners, prompting reflection on his investment choices in Nigeria. Dangote was also seen alleging the importation of substandard petroleum products into Nigeria by others.

Nairametrics previously reported that the federal government later granted marketers the license to buy petroleum products directly from Dangote refinery following NNPC’s decision to quit as the middleman between the two parties.

Source: https://nairametrics.com/2024/10/21/dangote-refinery-asks-court-to-void-import-licenses-of-nnpcl-matrix-and-four-others-in-n100-billion-case/

No be this same Dangote Agbadoists, Agbadorians, ronus, and BATerians said will sell fuel at cheap price? No be this be their hope? I remember them polluting the net with how Dangote refinery will be the game changer.

Kobojunkie:
Fighting for his business is by requiring an all-out ban on imports— kill the competition by way of banning imports. I don't agree at all! Dangote should instead woo buyers so they can come buy from him rather than consume imported PMS. This is like replacing one monster with another monster. E be like say this man's no understand any other language other than monopoly.

I get your point, but read my response to @ Emeenaka to see why I support this action by Dangote. These guys are not importing because they love Nigeria so much.

We do not
really know who's Nigeria enemy in all this. If Dangote products are cheep compared to imported products there is no reasons to import so far their qualities demand are met by the Dangote. There should be competition and the importers should be able to buy anywhere they like including import.

Salewa97:
Toh

Let the court decide.

Competition is good for the consumers

I thought Dangote na una game changer. We complained of monopoly una yan bunkum.

EmeeNaka:
He want to strangle Nigeria using the court. Doesn't he want competition at all?

daft comment

-40% of the pressure on forex in Nigeria is for the importation of refined petroleum products

- Dangote currently refines enough products to meet domestic consumption and to spare.

- If Nigeria stops imports of refined petroleum products, the pressure on our forex will be reduced by as much as 40% leading to the massive appreciation of the Naira.

- A barrel of crude oil currently sells for about $80 per barrel. With the exchange rate hovering around N1,700 to a Dollar. When pressure is reduced on our forex as a result of an end to imports of refined products, the Naira can appreciate to about N1000 to a USD. That means refineries in Nigeria will need less Naira to buy each barrel of Crude oil. This will lead to a drop in pump prices and inflation.

- by continuing to issue licences to import refined petroleum products, NNPC is killing our economy.

This nonsense has to stop

ERockson:
We do not
really know who's Nigeria enemy in all this. If Dangote products are cheep compared to imported products there is no reasons to import so far their qualities demand are met by the Dangote. There should be competition and the importers should be able to buy anywhere they like including import.

It's not about being cheap. The truth is that it will be suicidal to run an economy with monopoly and cartels. Sane countries do everything possible to discourage monopoly and cartels.

We pointed this out earlier but those wicked peeps who abhor this country called us names. They said that the refinery will be a game changer.

chicfarmer:
■ I get your point, but read my response to @ Emeenaka to see why I support this action by Dangote. These guys are not importing because they love Nigeria so much.

Are you kidding me? Do you actually believe Dangote is doing what he is doing because he loves Nigeria? 🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣 Let me guess, all those who import food and other goods into Nigeria also do not love Nigeria so much? 🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣

ERockson:
We do not really know who's Nigeria enemy in all this. If Dangote products are cheep compared to imported products there is no reasons to import so far their qualities demand are met by the Dangote. There should be competition and the importers should be able to buy anywhere they like including import.

That's exactly how it operates in a free market but Dangote does not want that for obvious reasons.

Lol,Dangote gradually showing self.Your refinery can't meet up daily demand yet wants to be sole supplier in a country as big as Nigeria. So the day the refinery doesn't work,Nigerians will suffer.

What stops him from pursuing getting enough crude oil locally, bring down the price of PMS, and the importers won't be able to compete?

Why is the price of PMS still on the rise even with the refinery on board?

It's a good move by Dangote. He will need to seek the court's intervention to get the NMDPRA to act in accordance with the law.

Why is Dangote afraid of competition

Is Dangote restricted from exporting his refined product? This guy is greedy and hates healthy competition. Since he believes his refined products are better than the imported ones and he is allowed to sell at his price, why is he bothered about those importing. He wants to maximize his surplus and ensure he only gains because his price is similar to those imported despite the importation cost and the fact that remaining products of refining crude are not imported.
To those thinking Dangote refinery is the solution, can we all see it is big shame on us?

Hmm

chicfarmer:
Dangote has a valid claim if indeed NMDPRA is in violation of the new PIA act by issuing those licenses. Why must we continue to import just to enrich a few fat cats to the detriment of Nigerians?
The man needs to fight for his business before they cripple him. Let the Court decide.

so in other words he is fighting for his business and not nigerians
Bst!!

Why?

What's wrong with this Man??
E wan use petrol price kill us

This man is stupid...you want government to ban importation of petroleum products, but you want to export to other countries.

Dangote is monopolistically evil... I will never forgive him for what him and emefiele did to the Nigerian economy between 2020 and 2023

This may just be your downfall because Tinubu never liked you in the first place.