Court Dismisses NNPCL’s Objection in Dangote Refinery’s Lawsuit Over Fuel Importation

Federal High Court Rules Against NNPCL’s Jurisdiction Challenge

A Federal High Court sitting in Abuja has dismissed an application filed by the Nigerian National Petroleum Corporation Limited (NNPCL) challenging the court’s jurisdiction in a lawsuit brought against it by Dangote Petroleum Refinery and Petrochemicals FZE.

The case, marked FHC/ABJ/CS/1324/2024, seeks to invalidate licenses issued by the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) allowing NNPCL and other marketers to import refined petroleum products, including Automotive Gas Oil (AGO) and Jet Fuel.

Justice Inyang Ekwo ruled on Tuesday that NNPCL’s objection lacked merit, allowing the case to proceed and granting Dangote Refinery’s request to amend the suit to reflect the proper name of the NNPCL as a defendant instead of the now-defunct NNPC.

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Dangote Refinery Challenges Fuel Importation Licenses

Dangote Refinery argues that the NMDPRA’s decision to issue importation licenses contradicts the Petroleum Industry Act (PIA), especially given that Nigeria now has local refining capacity. The company contends that importation should only occur in cases of supply shortages, which it insists do not currently exist.

The refinery is asking the court to prevent the NMDPRA from issuing or renewing fuel import licenses and is seeking N100 billion in damages from the regulatory body for allegedly undermining its market position.

Additionally, the lawsuit aims to stop the issuance of further licenses to several petroleum marketing companies, including:

• AYM Shafa Limited
• A. A. Rano Limited
• T. Time Petroleum Limited
• 2015 Petroleum Limited
• Matrix Petroleum Services Limited

NNPCL’s Argument Dismissed

NNPCL had argued that the case was premature and lacked jurisdiction, stating that the plaintiff sued a non-existent entity, as “NNPC” no longer exists following its transformation into NNPCL. The corporation also claimed that Dangote Refinery lacked the legal standing (locus standi) to initiate the lawsuit.

However, the court ruled in favor of Dangote Refinery, stating that the case had legal merit and allowing the necessary amendment to correctly reflect NNPCL as a party in the suit.

FCCPC’s Request to Join the Case Rejected

In a related ruling, the court also dismissed an application by the Federal Competition and Consumer Protection Commission (FCCPC) to be included as a defendant in the case. Justice Ekwo ruled that the FCCPC was neither a relevant nor necessary party in the dispute and that the case could proceed effectively without its involvement.

Legal Battle Continues Over Nigeria’s Fuel Market

The ruling marks a significant victory for Dangote Refinery as the case moves forward. Industry analysts suggest that the lawsuit could reshape Nigeria’s fuel import policies, especially in light of Dangote’s capacity to supply refined petroleum products locally.

As the case proceeds, stakeholders in the oil and gas sector will closely monitor the legal battle, which could have far-reaching implications for fuel pricing, local refining, and Nigeria’s overall petroleum industry regulation.