COURT POSTPONES DANGOTE REFINERY IMPORT LICENCE CASE TO MARCH 18

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The Federal High Court in Abuja has adjourned until March 18 to deliver a ruling on the case filed by Dangote Refinery and Petrochemicals FZE against the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian National Petroleum Company Limited (NNPCL), and five other parties concerning the issuance of petroleum import licenses.

Justice Inyang Ekwo postponed the case to rule on a preliminary objection raised by NNPCL, which challenged the validity of the suit.

Dangote Refinery, represented by its lawyer, Ogwu Onoja (SAN), is seeking to annul the import licenses 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 case, marked FHC/ABJ/CS/1324/2024, argues that the NMDPRA breached Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by granting import licenses without establishing a proven shortfall in local petroleum production.

Dangote Refinery is also requesting N100 billion in damages from the regulatory authority for allegedly continuing to issue licenses in violation of the law.

In response, AYM Shafa, A.A. Rano, and Matrix Petroleum submitted counter-affidavits, asking the court to dismiss the suit. They argued that Dangote Refinery’s production capacity is insufficient to meet Nigeria’s daily petroleum product needs and that granting the request would lead to a monopoly, in violation of 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 rejected the preliminary objection, calling it unnecessary. He also requested the court’s permission to amend the suit to correct the name.

After hearing arguments from both sides, Justice Ekwo adjourned the case until March 18 for a ruling.

In the meantime, the Federal Competition and Consumer Protection Commission (FCCPC), represented by its lawyer Olanrewaju Oshinaike, applied to join the case as a co-defendant, stating that its interests could be impacted by the decision. The FCCPC argued that the case involves critical issues related to anti-competition and the potential for monopolistic behavior in the petroleum industry.

The commission emphasized that Nigeria’s free-market economy prohibits monopolies and that it has a legal responsibility to prevent anti-competitive practices. It claimed that Dangote Refinery was attempting to create a monopoly through legal means, which goes against the FCCPC Act.

Dangote Refinery opposed the FCCPC’s application, labeling the commission as a “meddlesome interloper” with no jurisdiction over matters governed by the Petroleum Industry Act (PIA).

The refinery stated that its suit seeks to promote local refining and ensure adherence to Sections 317(8) and (9) of the PIA, which allows for importation only when local production is insufficient.

The court will rule on the preliminary objection and the FCCPC’s application on March 18.

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