Court Rules on Dangote Refinery’s N100bn Case Against NNPCL

The Federal High Court in Abuja has dismissed the Federal Competition and Consumer Protection Commission’s (FCCPC) request to be included in a lawsuit filed by Dangote Petroleum Refinery against the Nigerian National Petroleum Company Limited (NNPCL) and other oil marketers, seeking to halt the importation of refined petroleum products into the country.

Justice Inyang Ekwo, delivering the ruling, stated that the matter could be resolved without the FCCPC’s participation, as the commission was not deemed a necessary party.

The case, registered as FHC/ABJ/CS/1324/2024, names the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), NNPCL, AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited as the first to seventh defendants.

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Dangote Refinery is challenging the import licences granted by the NMDPRA to NNPCL and the five other companies, arguing that such licences should only be issued in cases of petroleum product shortfall, as outlined in Sections 317(8) and (9) of the Petroleum Industry Act. The refinery asserts its capacity to meet the country’s local petroleum needs and is seeking N100bn in damages for what it claims is the continued issuance of import licenses.

The FCCPC applied to join the suit, arguing that Dangote Refinery’s aim to restrict imports could lead to monopolisation, conflicting with the commission’s mandate to uphold free market competition.

Dangote Refinery opposed the FCCPC’s motion, contending that the commission had no standing in a matter governed by the Petroleum Industry Act and urged the court to deny the application.

Additionally, NNPCL filed a preliminary objection, contesting the refinery’s claims and challenging the court’s jurisdiction. NNPCL asserted that it was incorrectly named in the suit as “NNPC,” arguing that “Nigerian National Petroleum Company Limited” is its registered name with the Corporate Affairs Commission.

In his ruling, Justice Ekwo dismissed both the FCCPC’s request for joinder and NNPCL’s objection, stating the latter’s argument lacked merit. The court granted Dangote Refinery’s request to amend the suit to correctly reflect NNPCL’s proper legal name and adjourned the case to March 6 for further proceedings.