KEY POINTS
- NNPCL argues Dangote Refinery sued a non-existent entity in the supply rights case.
- Lawsuit seeks N100 billion in damages and exclusive petroleum product rights in Nigeria.
- Defendants claim Dangote’s lawsuit aims to monopolize Nigeria’s energy sector.
Nigerian National Petroleum Corporation Limited (NNPCL) has filed a preliminary objection to a lawsuit initiated by Dangote Petroleum Refinery and Petrochemicals FZE. The suit seeks exclusive rights for Dangote Refinery to supply petroleum products in Nigeria and challenges the issuance of importation licenses to competitors.
Through its lead counsel, Kehinde Ogunwumiju, SAN, NNPCL asserted that the lawsuit is flawed, arguing that Dangote Refinery’s claims lack legal merit and are based on the assumption that NNPCL is the same as the defunct Nigerian National Petroleum Corporation (NNPC).
Lawsuit details and relief sought
The suit, filed under case number FHC/ABJ/CS/1324/2024, names the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), NNPC, and other oil marketers—including AYM Shafa Limited, A. A. Rano Limited and Matrix Petroleum Services Limited—as defendants.
Dangote Refinery alleged that the NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by granting importation licenses to competitors despite the refinery’s ability to produce sufficient quantities of Automotive Gas Oil (AGO) and Jet-A1 fuel to meet domestic demand. The plaintiff is seeking:
- N100 billion in damages from the NMDPRA.
- An injunction preventing further issuance or renewal of importation licenses to defendants.
- Orders to seal storage facilities and revokes existing licenses held by the defendants.
NNPCL challenges suit’s basis
In its objection, NNPCL argued that the lawsuit is premature and lacks a valid cause of action. The company further challenged the court’s jurisdiction, emphasizing that the plaintiff had sued a non-existent entity.
NNPCL stated: “The 2nd defendant as listed, Nigeria National Petroleum Corporation Limited (NNPC), is not a registered legal entity. A search of the Corporate Affairs Commission (CAC) database confirms that no such entity exists.”
The company contended that NNPCL and the defunct NNPC are distinct entities, making the plaintiff’s claims against NNPCL invalid.
Opposition to monopoly
Other defendants, including AYM Shafa Limited, A. A. Rano Limited and Matrix Petroleum Services Limited, have also urged the court to dismiss the case. They described Dangote Refinery’s suit as an attempt to monopolize Nigeria’s energy sector, which they argue would harm competition and undermine the broader economy.
The court has yet to rule on the preliminary objections or the substantive case.
