NNPCL Petitions Court To Dismiss Dangote Refinery’s Suit On Import Licence

Breaking: We Are Under Financial Pressure, Fuel Supply Is Threatened - NNPCL Cries Out

The Nigeria National Petroleum Corporation Limited (NNPCL) has requested that a Federal High Court in Abuja dismiss a lawsuit initiated by Dangote Petroleum Refinery and Petrochemicals FZE, labeling it as lacking merit.

In a preliminary objection submitted by its legal team, led by Kehinde Ogunwumiju, SAN, to Justice Inyang Ekwo, NNPCL contended that the lawsuit is premature.

The application, referenced as FHC/ABJ/CS/1324/2024 and filed on November 15, seeks two specific orders: one to dismiss the case due to lack of jurisdiction and, alternatively, to remove NNPCL’s name from the proceedings.

NNPCL presented a six-point argument asserting that Dangote Refinery does not have the standing to bring the case forward.

“The plaintiff’s case is premature. It fails to establish a cause of action. The second defendant is not a proper party. The plaintiff’s action is without merit. This honorable court does not have the jurisdiction to adjudicate this matter,” stated NNPCL.

In an affidavit supporting the application, Isiaka Popoola, a clerk at Afe Babalola & Co, representing NNPCL, noted that one of their attorneys, Esther Longe, reviewed Dangote’s originating summons and related documents, revealing that the NNPC named in the lawsuit is a non-existent entity.

Popoola asserted that the court does not have jurisdiction over the second defendant identified as NNPC.

“This 2nd defendant in this suit as consistently seen on the face of the plaintiff’s originating summons, the affidavit in support and the written address as Nigeria National Petroleum Corporation Limited, NNPC.

“A simple search on the CAC website shows that there is no entity called “Nigeria National Petroleum Corporation Limited, NNPC,” he said.

According to Popoola, the second defendant or objector is distinct from the second defendant named in the plaintiff’s suit.

He asserted that the NNPCL, as identified in the refinery’s claim, lacks the capacity to be a competent party or a juristic entity.

Popoola contended that the lawsuit is flawed and should be dismissed, urging the court to approve their application in the interest of justice.

It has previously been reported that three oil marketers have also requested the court to reject the suit.

In a joint counter affidavit labeled FHC/ABJ/CS/1324/2024, submitted on November 5, 2024, in response to the originating summons from Dangote Refinery, the oil marketers informed Justice Ekwo that approving the application would have detrimental consequences for the nation’s oil industry.

The marketers assert that the strategy to monopolize the oil sector poses a significant risk to the nation.

The three companies—AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited—contend that the plaintiff has not supplied sufficient petroleum products to meet the daily needs of Nigerians.

Furthermore, they maintain that no evidence has been presented to the court to support any opposing claims.

Dangote Refinery has initiated legal action against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigeria National Petroleum Corporation Limited (NNPCL), who are named as the first and second defendants.

Additionally, AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited are identified as the third to seventh defendants in the originating summons dated September 6, 2024.

The plaintiff is seeking a court order to invalidate the import licenses granted by NMDPRA to NNPCL and the five other companies for the importation of refined petroleum products.

Moreover, the company requests the court to declare that NMDPRA has breached Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licenses for the importation of petroleum products.

It argued that such licenses should only be granted in situations where there is a shortfall in petroleum products.

The company also calls for a declaration that NMDPRA has failed in its statutory duties under the PIA by not promoting local refineries like itself.

Additionally, the company seeks damages amounting to N100 billion against NMDPRA for allegedly persisting in the issuance of import licenses to NNPCL and the five companies for the importation of petroleum products.

These it said are Automotive Gas Oil (AGO) and Jet Fuel (aviation turbine fuel) into Nigeria, “despite the production of AGO and Jet-A1 that exceeds the current daily consumption of petroleum products in Nigeria by the Dangote Refinery”.