Dangote Refinery seeks court order to revoke import permits of NNPCL , others.
Dangote Petroleum Refinery and Petrochemicals FZE has petitioned the Federal High Court in Abuja to revoke the import licenses held by the Nigeria National Petroleum Corporation Limited (NNPC) and six other businesses to import refined petroleum products into the country.
In the action with the file number FHC/ABJ/CS/1324/2024, the plaintiff challenges the defendants’ licence to import refined petroleum products into the country while there is no scarcity of production.
Other defendants in the complaint include the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.
The plaintiff is also requesting that the court award N100 billion in damages to the NMDPRA for allegedly continuing to issue import permits to NNPCL and the other defendants for the import of petroleum goods such as Automotive Gas Oil (AGO) and Jet Fuel (aviation turbine fuel) in Nigeria.
It informed the court that the licenses were granted to the defendants “despite the production of AGO and Jet-A1, which exceeds the current daily consumption of petroleum products in Nigeria by the Dangote Refinery.”
Specifically, Dangote Refinery sought an order of injunction prohibiting the 1st defendant (NMDPRA) from issuing and/or renewing import permits to the 2nd-7th defendants or any firms for the purpose of importing petroleum products.
It also sought general damages in the amount of N100 billion against the first defendant, as well as a court order directing the first defendant to seal off all tank farms, storage facilities, warehouses, and stations used by the defendants to store all refined petroleum products imported into Nigeria.
The plaintiff also sought a declaration that they are exempt from all federal, state, and local government taxes, levies, and other rates under 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.
It is alleged that the first defendant violates the NEPZA Act, the CIT Act, the Finance Act, and the Dangote Industries Free Zone Regulation 2020. They also violate the intent of the legislation when they seek or threaten to demand that the plaintiff pay an additional 0.5% levy for off-takers of petroleum products and an additional 0.5% wholesale tax for the Midstream Downstream Gas Infrastructure Fund (MDGIF).
“An order of mandatory injunction directing the 1st Defendant to withdraw immediately all import licenses issued to the 2nd-7th defendants and other companies other than the plaintiff and other local refineries for the purpose of importing refined petroleum products into Nigeria.”
Furthermore, “an order of injunction restraining the 1st Defendant from imposing and demanding a 0.5% levy meant for off-takers of petroleum products directly and an additional 0.5% wholesale levy in favour of MDGIF or any other levy or sum against the plaintiff” has also been issued.
According to the plaintiff, the NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act by giving licenses for the defendants to import petroleum products.
The plaintiff, Mr. Ogwu Onoja, SAN, led a team of lawyers through the filing process, contending that such permits should only be issued during situations of petroleum product scarcity.
It sought the court to rule that NMDPRA’s failure to promote local refineries such as the plaintiff’s violates its statutory duty under the Petroleum Industry Act.
Ahmed Hashem, Group General Manager of Government and Strategic Relations at Dangote Refinery, stated in an affidavit before the court that NMDPRA’s import licenses granted to other companies for the importation of AGO and Jet-A1 are crippling the plaintiff’s business, to which it has committed significant financial resources in the billions of US dollars.
He argued that NMDPRA’s activities essentially ignored the plaintiff’s items.
Furthermore, the deponent informed the court that, in violation of statutory provisions that prohibit the imposition of levies on transactions within Free Zones, NMDPRA threatened and demanded a 0.5% levy on the plaintiff’s wholesales and off-takers, as well as another 0.5% levy on wholesales to the Midstream and Downstream Gas Infrastructure Fund (MDGIF), in a letter dated June 10, 2024.
He claimed a vast conspiracy and coordinated attempt by international oil businesses and interests, in collaboration with the defendants, who are upset that Nigeria has an indigenous refinery poised to solve the ongoing energy issue and preserve the country.
“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,” claimed the complainant.
Meanwhile, there were indications that the case might not be heard by the court when a member of the plaintiff’s legal team, Mr. George Ibrahim, SAN, informed the court on Monday that efforts to amicably address the issue were underway.
He stated that the defendants had expressed their desire to reach an out-of-court settlement.
As a result, Justice Inyang Ekwo delayed the case to January 20, 2025, in order to receive a settlement report.