Federal High Court Ruling
The Federal High Court in Abuja has dismissed an attempt by the Nigerian National Petroleum Company Limited (NNPCL) to strike out a N100 billion lawsuit filed by Dangote Petroleum Refinery and Petrochemicals FZE. The ruling was delivered by Justice Inyang Ekwo after hearing arguments from the legal teams representing Dangote Refinery, NNPCL, and other parties involved.
Background of the Case
Dangote Refinery had filed a lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and several oil marketing companies, challenging the issuance of import licenses for petroleum products. The refinery argued that there was no need for continued fuel importation since it already produces automotive gas oil (AGO) and aviation turbine fuel (Jet-A1) in quantities exceeding Nigeria’s daily consumption.
The case, filed under suit number FHC/ABJ/CS/1324/2024, sought to void import licenses granted to NNPCL, Matrix Petroleum Services Limited, A.A. Rano Limited, and four other companies. Dangote Refinery also demanded N100 billion in damages, claiming NMDPRA violated the Petroleum Industry Act (PIA) by approving the licenses without confirming a shortfall in local supply.
NNPCL’s Defence
NNPCL’s legal team had argued that Dangote Refinery wrongly sued “Nigeria National Petroleum Corporation,” a non-existent entity, instead of the legally registered “Nigerian National Petroleum Company Limited.” The company also insisted that NMDPRA and NNPCL alone have the authority to determine petroleum product shortages, not private refineries.
Additionally, NNPCL maintained that the Backward Integration Policy, a provision in the PIA that supports local refining, must be implemented before restrictions on fuel imports can take effect. Based on these arguments, NNPCL urged the court to dismiss the case or at least remove its name from the lawsuit.
Dangote Refinery’s Response
Dangote Refinery’s lawyer, George Ibrahim, countered these claims by stating that the refinery’s lawsuit was based on the alleged violation of the Petroleum Industry Act. He argued that a government policy cannot override an existing law and that NNPCL’s attempt to dismiss the case lacked legal merit.
Ibrahim described NNPCL as a “busybody” in the case, stating that it had no legal standing to challenge the lawsuit since it was not representing NMDPRA. He urged the court to allow the refinery to amend its filings and proceed with the case.
Court’s Decision
Justice Ekwo ruled that NNPCL’s preliminary objection was “incompetent” and did not comply with the rules of the Federal High Court. He stated that NNPCL should have filed a counter-affidavit instead of a preliminary objection.
The judge ruled that jurisdictional matters can be determined at the final judgment stage, not through preliminary objections. He also permitted Dangote Refinery to amend its lawsuit to correct the naming error and serve the updated documents to the defendants.
What This Means for the Industry
The ruling allows Dangote Refinery to continue its legal challenge against fuel importation while seeking enforcement of the Petroleum Industry Act’s supply regulations. This case could have a significant impact on the Nigerian oil and gas sector, especially regarding import policies and the role of local refineries.
Aliko Dangote, Africa’s richest man, has previously expressed concerns about substandard petroleum imports and had even considered selling a stake in his refinery to NNPCL amid ongoing disputes. The federal government recently allowed marketers to buy fuel directly from Dangote Refinery, bypassing NNPCL’s role as an intermediary.
The outcome of this lawsuit could shape Nigeria’s downstream petroleum industry, determining whether fuel imports will continue despite increased local refining capacity.
