The Dangote Petroleum Refinery and Petrochemicals FZE has taken a legal step to obtain a court order invalidating all licences recently issued for the importation of petroleum products into Nigeria.
The plaintiff who approached the Federal High Court in Abuja, in a suit marked: FHC/ABJ/CS/1324/2024, is equally seeking damages of N100billion against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Dangote Refinery accused the NMDPRA of issuing import licenses to the Nigeria National Petroleum Corporation Limited (NNPCL), Matrix Petroleum Services Limited (Matrix) and others for the purpose of importing petroleum products such as Automotive Gas Oil (AGO) and Jet Fuel (aviation turbine fuel) into the country despite its production of AGO and Jet-A1 that exceeded the current daily consumption of petroleum products in Nigeria.
The company also listed the NNPCL, A.Y.M. Shafa Holdings Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited as other defendants in the suit.
In the suit filed for Dangote by a group of lawyers, led by Ogwu Onoja (SAN), the plaintiff is arguing among others, that the licences issued to NNPCL and others violated the Petroleum Industry Act (PIA).
The management of the Lagos-based refinery said that it is greatly distressed, adding that its investments risk being jeopardised unless the court intervenes and declares that NMDPRA is in violation of its statutory responsibilities under the PIA for not encouraging local refineries, but issuing licences for importation of petroleum products.
The firm’s Group General Manager of Government and Strategic Relations, Ahmed Hashem stated, in the supporting affidavit, that the import licences granted to other companies by NMDPRA for the importation of AGO and Jet-A1 are crippling the plaintiff’s business, to which it has committed substantial financial resources in billions of US dollars.
Hashem stated that the plaintiff’s products are largely left unpatronised due to the alleged actions of NMDPRA.
He stated that NMDPRA had threatened to impose and demand a 0.5% levy on the plaintiff on wholesales and off-takers, as well as another 0.5% levy on wholesales to the Midstream and Downstream Gas Infrastructure Fund (MDGIF) via a letter dated June 10, 2024, contrary to statutory provisions that limit the implementation of levies on transactions within Free Zones.
Hashem added that the foundational purpose of establishing Free Zones is to foster competition, attract foreign investment, and create tax havens.
He stated that there is an alleged grand conspiracy and concerted effort by International Oil Companies and interests.
Hashem added that the foundational purpose of establishing Free Zones is to foster competition, attract foreign investment, and create tax havens.
He stated that there is an alleged grand conspiracy and concerted effort by International Oil Companies and interests, in conjunction with the defendants, who are unhappy that Nigeria has an indigenous refinery ready to solve the lingering energy crisis and save the economy.
“The intervention of the Honourable Court has become necessary in order to stem the incessant violation of statutory provisions by the 1st Defendant in favour of other entities such as the 2nd to 7th defendants,” he was quoted by The NigeriaLawyer.
Dangote wants the court to issue an order of injunction restraining the NMDPRA from further issuing and/or renewing import licenses to the the other defendants or other companies for the purpose of importing petroleum products.
Other reliefs partly sought by the plaintiff are as follows:
It also wants the court to declare that NMDPRA is allegedly in violation of Sections 317(8) and (9) of the Petroleum Industry Act by issuing licenses for the importation of petroleum products.
Other reliefs being sought includes:
*A declaration that by the provisions of Section 8(1) of the Nigerian Export Processing Zone Act (NEPZA), Sections 23(h) and 55(1) of the Companies Income Tax Act (CIT Act), Paragraph 6 of the Second Schedule to the CIT Act, Regulation 54(2)(a)(i) of the Dangote Industries Free Zone Regulation 2020, and the Finance Act, the plaintiff, being an entity duly registered as a Free-Zone Enterprise, is exempted from all federal, state, and local government taxes, levies, and other rates.
*A declaration that it is against the NEPZA Act, CIT Act, Finance Act, and Dangote Industries Free Zone Regulation 2020, as well as legislative intent, for the 1st Defendant to impose or threaten to impose on the plaintiff an additional financial obligation of a 0.5% levy meant for off-takers of petroleum products directly and an additional 0.5% wholesale levy in favor of the Midstream Downstream Gas Infrastructure Fund (MDGIF).”