Petrol import licence: Court rules on NNPCL objection to Dangote Refinery’s suit March,18

BY ANDREW OROLUA

A Federal High Court in Abuja will rule on the objection filed by Nigeria National Petroleum Company Limited (NNPCL) on March 18 as the company insisted the Court lacked jurisdiction to entertain a suit filed by Dangote Refinery challenging the issuance of petrol import licenses to five companies.

Nigeria National Petroleum Company Limited (NNPCL) said the court lacks jurisdiction following fundamental errors contained in the suit.

Alternatively, NNPCL said in its preliminary objection that the court should strike out it’s name from the suit, if Dangote Refinery want the matter to proceed to hearing.

Dangote Refinery had sued Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) NMDPRA, NNPCL, AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited as 1st to 7th defendants respectively in the originating summons, marked: FHC/ABJ/CS/1324/2024 dated September 6, 2024.

But , Nigeria National Petroleum Company limited, NNPCL, told the court that it’s objection is anchor on the fact that documents meant for a non existence company ” Nigeria National Petroleum Corporation limited was served on the company.

Moving the preliminary objection on Wednesday, Counsel to the NNPCL, Abimbola Ademola, SAN prayed the court for an order striking out the suit filed by Dangote Refinery for lack of jurisdiction or, in the alternative, strike out NNPCL from the suit.

In his response to the preliminary objection, Counsel to the plaintiff, George Ibrahim, SAN said, the plaintiff filed five paragraphs affidavit and a written address in urging the court to dismiss the preliminary objection by NNPCL for been unnecessary.

Ibrahim also prayed the court to allow the plaintiff’s application seeking to amend its suit.

After parties adopted their written submissions on the issues, the trial Judge, Justice Inyang Ekwo adjourned till March 18, 2025 for ruling.

In the suit marked:FHC/ABJ/CS/1324/2024, Dangote Refinery had prayed the court to nullify import licences issued by NMDPRA to the NNPCL and the five other companies for the purpose of importing refined petroleum products.

The company (plaintiff) also prayed the court to declare that NMDPRA was in violation of Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licenses for the importation of petroleum products, stating that, such licenses should only be issued in circumstances where there is a petroleum product shortfall.

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It equally sought a N100 billion in damages against NMDPRA for allegedly continuing to issue import licences to NNPCL and the five companies for importing petroleum products, among other reliefs.

NMDPRA, in its counter affidavit deposed to by Idris Musa, a Senior Regulatory Officer in the office, prayed the court to dismiss the suit as it was misconceived, unmeritorious and incompetent and argued that Dangote Refinery is not entitled to any of the reliefs sought.

Musa, in the application filed on December 13, 2024, said the current production of Dangote Refinery is yet to meet the national daily petroleum products sufficiency requirement and, “Based on this and in compliance with Section 317 (9) of the PIA (Petroleum Industry Act), NMDPRA issued licences to import petroleum products to bridge product shortfalls to companies with good track records of international products trading.

Besides, he said the agency is also mandated to promote competition and prevent abuse of dominant market positions and unhealthy monopoly in the oil and gas sector.

He denied the allegation that NMDPRA is partaking in any purported “grand conspiracy and concerted efforts” against the refinery, describing it as “an allegation for which the plaintiff has provided no facts or evidence in support.”

Also, the oil marketers, in a joint counter affidavit filed on November 5, 2024, told the court that granting Dangote’s application would spell doom for the country’s oil sector.

According to them, the plan to monopolise the oil sector is a recipe for disaster in the country.

The three marketers; AYM Shafa Limited, A. A. Rano Limited and Matrix Petroleum Services Limited, in their response, said the plaintiff did not produce adequate petroleum products for the daily consumption of Nigerians.

Besides, they argued that there was nothing placed before the court to prove the contrary.