Kehinde Fajobi
A Federal High Court in Abuja, on Monday, postponed hearing on a suit filed by Dangote Petroleum Refinery and Petrochemicals FZE challenging the issuance of oil import licenses to other oil marketers.
The delay was due to the refinery’s failure to serve amended court documents to the defendants.
The suit, marked FHC/ABJ/CS/1324/2024 and filed on September 6, lists the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Nigerian National Petroleum Corporation Limited (NNPCL) as first and second defendants, respectively.
It also includes five oil marketing companies: AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.
Through its counsel, Ogwu Onoja (SAN), Dangote Refinery seeks to nullify the licenses issued by NMDPRA, arguing they violate Sections 317(8) and (9) of the Petroleum Industry Act (PIA), which restrict such licenses to instances of national shortfall in petroleum products.
The plaintiff is also demanding ₦100 billion in damages from NMDPRA for continuing to issue the licenses.
When the case was called, George Ibrahim, representing Dangote Refinery, acknowledged the inability to serve the amended summons, citing errors in the initial application. Counsel to the defendants, including Ahmed Raji (SAN), Mathew Bukar (SAN), and Divine Oguru, confirmed they had not received the updated documents.
NNPCL’s lawyer, Ademola Abimbola, said they were served only hours before the hearing and needed time to review the amendments.
Justice Inyang Ekwo expressed dissatisfaction with the delays, stating, “You have not been able to position this matter to be heard, and that is the cause of the adjournment.” The judge adjourned the case to January 30, 2025, for further proceedings.
In a counter affidavit, Idris Musa, a Senior Regulatory Officer at NMDPRA, defended the licenses, arguing they were issued to address shortfalls in petroleum supply, as Dangote Refinery’s current production cannot meet Nigeria’s daily consumption needs.
Musa added, “The agency is also mandated to promote competition and prevent monopolies in the oil and gas sector.”
NNPCL and the marketers similarly opposed Dangote’s claims. In their submissions, they warned that granting the refinery’s demands would create a monopoly, which they described as “a recipe for disaster.”
The marketers further argued that Dangote Refinery has not provided sufficient evidence to prove its capacity to meet Nigeria’s petroleum needs. They maintained that licensing other firms ensures stability and competition in the oil sector.