NNPCL vs. Dangote Refinery: Court Dismisses NNPCL’s Objection in Petroleum Import Licensing Dispute
By DAYO ADESULU
Federal High Court Dismisses NNPCL’s Challenge in Petroleum Import Case
A Federal High Court sitting in Abuja has dismissed an objection filed by the Nigerian National Petroleum Corporation Limited (NNPCL) challenging its jurisdiction in a case brought against it by Dangote Petroleum Refinery and Petrochemicals FZE over the issuance of petroleum import licenses.
The case, marked FHC/ABJ/CS/1324/2024, seeks to nullify the licenses issued by the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) that allow Nigerian National Petroleum Corporation Limited, NNPCL, and other marketers to import refined petroleum products into Nigeria.
Dangote Refinery Seeks to Halt Petroleum Importation Licenses
Dangote Refinery, the plaintiff, argues that it was improper to issue licenses for the importation of petroleum products such as Automotive Gas Oil (AGO) and Jet Fuel when its local production meets demand. The refinery, which has ramped up its refining operations, insists that the importation licenses threaten its ability to operate competitively in the Nigerian market.
As part of its demands, Dangote Refinery is seeking N100 billion in damages from NMDPRA for what it describes as an unjust decision to allow importation despite the availability of locally refined petroleum products. Additionally, it has applied for a court order restraining NMDPRA from issuing or renewing petroleum import licenses to Nigerian National Petroleum Corporation Limited, NNPCL, and other marketers.
- Dangote Refinery Has Enough Petrol to Meet Nigeria’s Needs, Says Aliko Dangote
- https://www.thecheernews.com/dangote-to-build-6-mta-cement-plant-in-itori-largest-seaport-at-olokola-also-in-ogun-state/
NNPCL Objects, Challenges Court’s Jurisdiction
Before the court could hear the case, Nigerian National Petroleum Corporation Limited, NNPCL, filed a preliminary objection, questioning the competence of the suit and the court’s jurisdiction. The corporation argued that the plaintiff mistakenly sued an inexistent party, noting that the entity listed as the second defendant was NNPC, which no longer exists following its transition to a limited liability company (NNPCL).
The Nigerian National Petroleum Corporation Limited also challenged Dangote Refinery’s legal standing, arguing that the case was premature and that the plaintiff had no valid claim against it. The corporation urged the court to strike out its name from the suit, asserting that the lawsuit lacked merit.
Court Rules Against NNPCL, Allows Case to Proceed
Despite NNPCL’s objections, Justice Inyang Ekwo ruled against the corporation, dismissing its motion for lacking merit. The judge also granted Dangote Refinery’s application to amend its suit, allowing it to correct the defendant’s name from NNPC to NNPCL, ensuring that the case proceeds against the legally recognized entity.
In a related ruling, the court dismissed an application filed by the Federal Competition and Consumer Protection Commission (FCCPC) seeking to be joined as a party in the case. The court held that FCCPC’s involvement was unnecessary and that the dispute could be resolved without its participation.
Implications for Nigeria’s Petroleum Industry
The court’s decision marks a significant moment in the ongoing battle over petroleum importation policies in Nigeria. If Dangote Refinery succeeds in its case, it could lead to policy shifts that prioritize local refining over importation, potentially reshaping Nigeria’s oil and gas sector.
As the case progresses, stakeholders in the Nigerian petroleum industry will be keenly watching the legal battle between Nigerian National Petroleum Corporation Limited and Dangote Refinery, given its potential impact on fuel prices, supply chains, and the country’s refining capacity.
What’s Next in the NNPCL vs. Dangote Refinery Case?
With the court dismissing NNPCL’s objections, the legal proceedings will now focus on the merits of Dangote Refinery’s claims. The case could set a precedent for the regulation of petroleum imports and local refining operations in Nigeria.
Stay tuned for further updates on this legal showdown shaping the future of Nigeria’s oil industry.
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Dayo Adesulu, online editor, SEO expert
