Dangote Petroleum Refinery and Petrochemicals FZE has urged the Federal Excessive Court docket in Abuja to dismiss the preliminary objection of the Nigerian Nationwide Petroleum Firm Restricted (NNPCL) in opposition to its N100 billion import licenses lawsuit.
The authorized crew of Dangote Petroleum Refinery and Petrochemicals accused NNPCL of being a “busybody” and “meddlesome interloper” making an attempt to kill a swimsuit that seeks the court docket’s interpretation of sure sections of the Petroleum Business Act (PIA).
On Thursday, the court docket adjourned the Dangote Petroleum Refinery and Petrochemicals FZE import license lawsuit in opposition to NNPCL, Matrix Petroleum Companies Restricted, A.A. Rano Restricted, and 4 different firms.
Nairametrics beforehand reported that Dangote Refinery’s authorized crew had sought to amend the swimsuit to right a “clerical spelling” error on January 30, however the request couldn’t be heard because of NNPCL’s insistence on resolving its preliminary objection first.
Nairametrics additionally reported that Dangote Petroleum Refinery and Petrochemicals FZE had filed a swimsuit searching for to void import licenses issued to NNPCL, Matrix Petroleum Companies Restricted, A.A. Rano Restricted, and 4 different firms for importing refined petroleum merchandise.
The refinery argues that these merchandise are already being produced domestically with out shortfalls.
In swimsuit quantity FHC/ABJ/CS/1324/2024, Dangote Refinery is searching for N100 billion in damages in opposition to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for allegedly persevering with to difficulty import licenses to NNPCL, Matrix, and different firms for importing petroleum merchandise corresponding to Automotive Fuel Oil (AGO) and Jet Gas (aviation turbine gas) into Nigeria.
What Transpired in Earlier Proceedings
Dangote Refinery’s swimsuit claims that the importation of petroleum merchandise persists “regardless of the manufacturing of AGO and Jet-A1 that exceeds the present day by day consumption of petroleum merchandise in Nigeria by Dangote Refinery.”
The defendants within the case embody NMDPRA, NNPCL, AYM Shafa Restricted, A.A. Rano Restricted, T. Time Petroleum Restricted, 2015 Petroleum Restricted, and Matrix Petroleum Companies Restricted.
In its originating summons dated September 6, 2024, seen by Nairametrics, the plaintiff’s lawyer, George Ibrahim, SAN, argued that NMDPRA allegedly violated Sections 317(8) and (9) of the Petroleum Business Act by issuing import licenses for petroleum merchandise, which ought to solely be granted when there’s a confirmed shortfall in provide.
Days after the swimsuit was filed and adjourned, three oil firms—Matrix Petroleum Companies Restricted, A.A. Rano Restricted, and AYM Shafa Restricted—filed a movement urging the court docket to dismiss the swimsuit.
They argued that solely NMDPRA and NNPCL are legally empowered to find out petroleum product shortfalls in Nigeria, not Dangote Refinery.
Of their counter-affidavit dated November 5, 2024, connected to a written handle seen by Nairametrics, the businesses, by Ahmed Raji, SAN, sought an order prohibiting NMDPRA from reviewing or withdrawing their import licenses.
In the meantime, NNPCL’s counsel, Ademola Abimbola, SAN, filed a preliminary objection, arguing that the plaintiff erroneously sued “Nigeria Nationwide Petroleum Company,” a non-existent entity, as an alternative of the appropriately registered “Nigerian Nationwide Petroleum Firm Restricted.”
Abimbola additionally argued that till NMDPRA decides to use the “Backward Integration Coverage” within the downstream petroleum sector, it isn’t underneath any obligation to limit the issuance of petroleum product import licenses solely to cowl shortfalls in native refinery manufacturing.
The Backward Integration Coverage, a provision within the PIA, encourages funding in native refining services by granting import licenses for refined merchandise solely to firms concerned in home refining.
NNPCL urged the court docket to carry that the enactment of a Backward Integration Coverage within the downstream petroleum sector is a prerequisite earlier than Dangote Refinery can problem NMDPRA’s continued issuance of import licenses to the 2nd to seventh defendants.
Abimbola additional urged the court docket to rule that Dangote Refinery has no authorized proper to institute this swimsuit.
The court docket had on the final sitting, directed Dangote Refinery to offer a proper response to NNPCL’s objection, forward of the following proceedings on February 5, 2025.
Dangote Refinery Counters NNPCL
“It’s subsequently our most humble submission that there isn’t any different or additional situation precedent required from the Plaintiff that has not been met, and nothing prevents this Court docket from exercising its jurisdiction,” he argued.
“The NNPCL is merely a busybody and a meddlesome interloper, and its arguments on this difficulty ought to be disregarded,” he acknowledged.
Ibrahim additionally argued that NNPCL won’t endure any prejudice if its title is corrected within the lawsuit, permitting it to reply to the allegations and be sure by the case consequence.
He identified that, although NNPCL was not served with the originating summons like the opposite defendants, its attorneys voluntarily obtained the court docket processes and filed a preliminary objection solely on the premise of a clerical error in its title.
He stated that whereas his shopper has utilized to right NNPCL’s title, NNPCL is searching for to dismiss your complete swimsuit, although there are different competent defendants concerned, which implies the swimsuit stays legitimate with or with out NNPCL.
He requested the court docket to rule {that a} preliminary objection like NNPCL’s turns into “ineffective” as soon as a movement for modification is allowed, citing quite a few appellate court docket choices.
What You Ought to Know
What You Ought to Know
