Dangote Petroleum Refinery and Petrochemicals FZE has pushed back against the Nigerian National Petroleum Company Limited (NNPCL) in a high-stakes legal battle over the issuance of petroleum import licenses, urging the Federal High Court in Abuja to dismiss NNPCL’s preliminary objection and allow the case to proceed.
The N100 billion lawsuit, which also names Matrix Petroleum Services Limited, A.A. Rano Limited, and four other companies, challenges the continued importation of refined petroleum products—a move Dangote Refinery claims violates Sections 317(8) and (9) of the Petroleum Industry Act (PIA) since it is already producing sufficient volumes of AGO (diesel) and Jet-A1 (aviation fuel) for Nigeria’s market.
Dangote Refinery’s legal team, led by Senior Advocate of Nigeria (SAN) George Ibrahim, has called NNPCL a “busybody and meddlesome interloper” that is interfering in a case that primarily concerns the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)—the statutory body responsible for overseeing fuel import regulations.
Background: The Dispute Over Petroleum Import Licenses
The legal battle erupted after Dangote Refinery filed suit number FHC/ABJ/CS/1324/2024, accusing NMDPRA of wrongly granting fuel import licenses to NNPCL and private companies like AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, and 2015 Petroleum Limited.
The refinery argues that the Petroleum Industry Act (PIA) only permits fuel imports when there is a proven shortfall—a condition Dangote claims no longer exists since its 650,000 barrels-per-day refinery is now producing more than enough for the domestic market.
Despite this, import licenses have continued to be issued, prompting Dangote Refinery to demand N100 billion in damages from NMDPRA, NNPCL, and the involved marketers.
NNPCL’s Defense: A ‘Clerical Error’ and Policy Dispute
NNPCL, represented by Ademola Abimbola, SAN, has sought to dismiss the case on two main grounds:
1.A clerical error in the lawsuit – NNPCL claims it was wrongly sued under its former name (“Nigeria National Petroleum Corporation”), which legally ceased to exist in 2021 following its transformation into a limited liability company.
2.The Backward Integration Policy – NNPCL argues that until the government formally implements the PIA’s Backward Integration Policy, it has no legal obligation to limit petroleum imports.
NNPCL’s lawyers further contend that only NMDPRA and NNPCL—not Dangote Refinery—are legally empowered to determine whether there is a shortfall in local production.
Dangote Refinery’s Counterattack: ‘NNPCL Is Interfering’
In a written response filed on February 2, 2025, Dangote Refinery dismissed NNPCL’s objections, insisting that:
•The suit is valid even if NNPCL’s name was misspelled, since the company has already acknowledged receipt of the case documents and voluntarily filed a defense.
•NNPCL has no legal standing to argue on behalf of NMDPRA, as it is not the regulatory authority responsible for import licenses.
•The Backward Integration Policy is secondary to the PIA, which already prohibits unrestricted petroleum imports unless a shortfall is proven.
“The NNPCL is merely a busybody and a meddlesome interloper,” Ibrahim SAN argued, stating that a government policy cannot override an Act of the National Assembly.
He also accused NNPCL of trying to dismiss the entire lawsuit based on a technicality, despite other defendants remaining in the case.
What’s Next? Court Hearing Set for February 5
The Federal High Court adjourned the matter to February 5, 2025, instructing Dangote Refinery to formally respond to NNPCL’s preliminary objection before moving forward with the substantive suit.
Industry experts believe this case could have major implications for Nigeria’s downstream oil sector, especially as NNPCL’s monopoly on petroleum supply is being challenged by Dangote’s refinery operations.
What You Should Know
•Aliko Dangote recently offered to sell a stake in his multibillion-dollar refinery to NNPCL, signaling deepening tensions between both parties.
•Dangote had earlier accused NNPCL and other marketers of flooding Nigeria with substandard imported fuel, undermining local refining efforts.
•Following pressure from industry players, the federal government recently allowed private marketers to purchase refined products directly from Dangote Refinery instead of relying on NNPCL as an intermediary.
As the case unfolds, all eyes will be on the court’s interpretation of the Petroleum Industry Act, and whether it will set new precedents for local fuel production and import regulations in Nigeria.
