Dangote Petroleum Refinery and Petrochemicals FZE has filed a lawsuit in the Federal High Court in Abuja, seeking to invalidate petroleum import licenses issued by the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to several companies, including the Nigerian National Petroleum Corporation Limited (NNPCL) and Matrix Petroleum Services Limited. The refinery contends that these licenses are detrimental to its operations and violate existing statutory provisions.
In its suit (number FHC/ABJ/CS/1324/2024), Dangote Refinery claims that it has invested billions of dollars into its operations, which currently produce refined petroleum products that meet and exceed Nigeria's daily consumption needs. The company argues that the issuance of import licenses for products such as Automotive Gas Oil (AGO) and Jet Fuel to other firms is undermining its business and preventing it from realizing its full market potential.
“Despite our capacity to supply these products domestically, the NMDPRA continues to issue import licenses that favor other entities,” stated Ahmed Hashem, Group General Manager of Government and Strategic Relations at Dangote Refinery. “This not only cripples our business but also contravenes the foundational purpose of establishing Free Zones, which is to foster competition and attract investment.
The refinery is seeking N100 billion in damages from the NMDPRA for what it describes as a concerted effort to undermine its operations through the issuance of these licenses. Furthermore, Dangote Refinery is requesting an injunction to prevent the NMDPRA from issuing or renewing any import licenses for refined petroleum products to other companies.
The legal action comes at a time when Dangote Refinery has ramped up its production capabilities, significantly reducing Nigeria's reliance on imported fuel. Recent reports indicate a sharp decline in petrol imports as the refinery meets local demand, highlighting its potential role in stabilizing the nation's energy sector.