The Federal High Court in Abuja on Wednesday adjourned till March 18 for a ruling in the suit filed by Dangote Refinery and Petrochemicals FZE against the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian National Petroleum Company Limited, and five others over the issuance of petroleum import licences.
Justice Inyang Ekwo adjourned the matter to deliver a ruling on the preliminary objection filed by NNPCL, challenging the competence of the suit.
Dangote Refinery, through its counsel, Ogwu Onoja (SAN), is asking the court to nullify import licences issued by the NMDPRA to NNPCL and five other companies—AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.
The originating summons is marked FHC/ABJ/CS/1324/2024.
The refinery contends that NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing import licences without a proven shortfall in local petroleum production.
It is also seeking N100 billion in damages from the regulatory authority for allegedly continuing to issue import licences in breach of the law.
In response, AYM Shafa, A.A. Rano, and Matrix Petroleum filed counter-affidavits, urging the court to dismiss the suit.
They argued that Dangote Refinery’s production capacity does not meet Nigeria’s daily petroleum product needs and that granting its request would create a monopoly, contrary to the PIA and the Federal Competition and Consumer Protection Act.
The NNPCL, represented by Abimbola Ademola (SAN), filed a preliminary objection, arguing that the entity sued does not exist, as the proper legal name is “Nigerian National Petroleum Company Limited,” registered with the Corporate Affairs Commission.
The counsel urged the court to strike out the suit or, alternatively, remove NNPCL as a defendant.
Onoja opposed the preliminary objection, describing it as unnecessary.
He also sought the court’s leave to amend the suit to reflect the correct name.
After listening to arguments from both parties, Justice Ekwo adjourned the matter until March 18 for ruling.
Meanwhile, the Federal Competition and Consumer Protection Commission, through its counsel Olanrewaju Oshinaike, sought to join the suit as a co-defendant, arguing that its interests could be affected by the outcome.
The FCCPC contended that the case raises significant issues related to anti-competition and potential monopolistic practices in the petroleum sector.
The commission argued that Nigeria’s free-market economy prohibits monopolies and that it has a statutory duty to prevent anti-competitive agreements.
It claimed Dangote Refinery was attempting to create a monopoly through judicial means, contrary to the FCCPC Act.
Dangote Refinery opposed the FCCPC’s application, describing the commission as a “meddlesome interloper” with no jurisdiction over matters governed by the PIA.
The refinery argued that its suit aims to promote local refining and ensure compliance with Section 317(8) and (9) of the PIA, which permits importation only when there is insufficient local production.
The court will rule on the preliminary objection and the FCCPC’s application on March 18.
