By Ono Yima
A Federal High Court in Abuja has scheduled March 18, 2025, to deliver its ruling on the preliminary objection filed by the Nigerian National Petroleum Company Limited (NNPCL) against a lawsuit brought by Dangote Petroleum Refinery and Petrochemicals FZE. The case revolves around the issuance of petroleum import licenses and its implications for the local oil industry.
The dispute centers on Dangote Refinery’s challenge to the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and NNPCL over the continued issuance of import licenses for refined petroleum products. The refinery argues that, under the Petroleum Industry Act (PIA) 2021, such licenses should only be issued in cases of product shortages, which it claims are not present. It further alleges that NMDPRA’s decision to grant these licenses undermines its market position and calls for a N100 billion compensation.
During the court proceedings on Wednesday, Justice Inyang Ekwo heard arguments from NNPCL’s counsel, Ademola Abimbola (SAN), and Dangote Refinery’s lawyer, John Ibrahim (SAN). The NNPCL urged the court to strike out the case, arguing that the suit lacked jurisdiction and was premature. Additionally, the corporation challenged the validity of the suit by pointing out a discrepancy in its legal name as filed by Dangote Refinery.
The NMDPRA and other oil marketing companies, also named as defendants, defended the continued issuance of import licenses. They maintained that Dangote Refinery is not yet producing enough petroleum products to meet national demand, making imports necessary to prevent shortages. They further warned that blocking imports in favor of Dangote’s refinery could lead to supply disruptions and higher fuel prices.
With the country still grappling with fuel price volatility and foreign exchange challenges, the outcome of this case will shape the future of the downstream oil market and influence the implementation of the PIA’s market liberalization policies.