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Dangote Refinery and Petrochemicals announced on Tuesday that it is moving to settle its legal dispute with the Nigerian National Petroleum Company Limited (NNPCL) and six other parties out of court. The case involves the issuance of import licences by the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for petroleum imports, which Dangote had contested in a Federal High Court in Abuja.
The company had initially sought to nullify these licences and claim N100 billion in damages against the NNPCL, arguing that the permits were granted despite no shortfall in the country’s production of Automotive Gas Oil (AGO) and aviation fuel. Other defendants include AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.
In a statement signed by Group Chief Branding and Communications Officer Anthony Chiejine, Dangote indicated that the dispute, which originated in June and led to a formal filing on September 6, has made progress towards resolution following a directive from President Bola Tinubu for crude oil and refined product sales to be conducted in naira. “We have made tremendous progress… No party has been served with court processes and there is no intention of doing so,” Chiejine stated.
Dangote’s lawsuit, marked FHC/ABJ/CS/1324/2024, challenged the legality of granting import licences to other companies, claiming that it breached sections of the Petroleum Industry Act and adversely impacted its business. The company argued that NMDPRA issued licences for imports despite local production exceeding demand, thereby infringing on the statutory provisions that encourage local refineries. The suit also sought an injunction to prevent NMDPRA from issuing further import licences and a declaration exempting Dangote from levies imposed under various federal laws.
An affidavit by Ahmed Hashem, Dangote Refinery’s Group General Manager of Government and Strategic Relations, accused NMDPRA of threatening additional levies on sales in Free Zones, alleging a conspiracy with international oil interests to undermine Nigeria’s first indigenous refinery.
Despite the contentious legal claims, the company’s legal representative, George Ibrahim, SAN, revealed to the court that discussions are ongoing to settle the matter amicably. Justice Inyang Ekwo adjourned the case until January 20, 2025, for a report on the settlement’s progress.
