By 9jaeye 
In a high-profile legal battle, Dangote Refinery initiated a ₦100 billion lawsuit on September 6, 2024, aimed at invalidating import licenses held by the Nigerian National Petroleum Company Limited (NNPCL), Matrix Petroleum Services, and several other companies. The lawsuit, heard today, October 21, 2024, at the Federal High Court in Abuja, accuses the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of issuing these licenses despite Dangote Refinery’s capacity to meet Nigeria’s petroleum needs.
Dangote Refinery claims that NMDPRA violates the Petroleum Industry Act (PIA) by issuing import licenses under circumstances where no product shortage exists. Dangote Refinery claims it produces enough Automotive Gas Oil (AGO) and Jet-A1 fuel to fulfill local demand. By continuing to issue these licenses, Dangote alleges that its business is suffering due to unfair competition, undermining its multi-billion dollar investment in refining Channels Television.
NNPCL, Dangote Refinery In Court
During today’s hearing, Dangote Refinery’s legal team, led by George Ibrahim SAN, informed the court that discussions for a settlement between the parties were underway. The lawsuit aims to prevent the issuance of additional licenses to the defendants, which include NNPCL, Matrix Petroleum, and A.A. Rano. Rano, Aym Shafa, T. Time Petroleum, and 2015 Petroleum Limited. The court has adjourned the case until January 20, 2025, to allow the parties to pursue these talks further Channels Television.
Impact on Nigeria’s Petroleum Sector
The result of this lawsuit could significantly impact Nigeria’s petroleum sector. Dangote Refinery, as one of Africa’s largest refineries, seeks to dominate local production, but ongoing competition from importers has stalled its market potential. This case raises concerns about how authorities are enforcing the Petroleum Industry Act (PIA) and whether local refineries, like Dangote’s, should receive exclusive rights to supply the domestic market. Nairametrics.
Local Refinery Support in Focus
As the legal case develops, stakeholders across the petroleum industry are watching closely. The outcome may shape future policies on how Nigeria balances competition with supporting local refineries. While Dangote seeks to strengthen its market share, other companies argue that competition ensures better prices and supply reliability for consumers.
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