Dangote Refinery and Petrochemicals have that it was settling out of court with Nigerian National Petroleum Company (NNPC) Limited and six others over import licences granted them by Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to import petrol into the country.
Gatekeepers News that the company had before this, pleaded with a Federal High Court in Abuja to nullify the licenses and also award it N100billion damages against the 1st defendant, NNPCL.
Other defendants in the suit are 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.
Dangote refinery however in a statement released on Monday night by the Group Chief Branding and Communications Officer, Anthony Chiejine, said it was ready to settle the case amicably with NNPCL and other defendants in the “old case” filed in June.
The statement goes, ‘’This is an old issue that started in June and culminated in a matter filed on Sept 6, 2024.”
‘’Currently, the parties are in discussion since President Bola Tinubu’s directive on crude oil and refined product sales in naira initiative, which the Federal Executive Council, FEC, approved.”
‘’We have made tremendous progress in that regard and events have overtaken this development. No party has been served with court processes and there is no intention of doing so. We have agreed to put a halt to the proceedings.”
‘’It is important to stress that no orders have been made and there are no adverse effects on any party. We understand that once the matter comes up in January 2025, we will be in a position to formally withdraw the matter in court.’’
The refinery had in the suit, marked ‘FHC/ABJ/CS/1324/2024’ queried the propriety of the licence issued to the defendants to bring refined petroleum products into the country when there is no shortfall in its production.
The plaintiff also prayed the court to award N100 billion in damages against NMDPRA for allegedly continuing to issue import licenses to NNPCL and the other defendants for import of petroleum products such as Automotive Gas Oil (AGO) and Jet Fuel (aviation turbine fuel) into the country.
It said the licences were issued to the defendants, “despite the production of AGO and Jet-A1 that exceeds the current daily consumption of petroleum products in Nigeria by the Dangote Refinery.”
In addition, Dangote Refinery applied for an order of injunction, restraining the 1st defendant (NMDPRA) from further issuing and/or renewing import licenses to the 2nd to 7th defendants or other companies to import petroleum products.
It sought general damages in the sum of N100 billion against the NNPC, as well as an order of the court directing NNPC to seal off all tank farms, storage facilities, warehouses, and stations used by the defendants for storage of all refined petroleum products imported into the country.
Other reliefs the refinery prayed the fourth for included, “a declaration that by 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, the plaintiff, being an entity duly registered as a Free-Zone Enterprise, is exempted from all federal, state, and local government taxes, levies, and other rates.”
“A declaration that it is against the NEPZA Act, CIT Act, Finance Act, and Dangote Industries Free Zone Regulation 2020, as well as legislative intent, for the 1st Defendant to impose or threaten to impose on the plaintiff an additional financial obligation of a 0.5% levy meant for off-takers of petroleum products directly and an additional 0.5% wholesale levy in favour of 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.”
“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.”
The plaintiff noted that NMDPRA acted in breach of Sections 317(8) and (9) of the Petroleum Industry Act by issuing licenses for importation of petroleum products to the defendants.
In the processes filed through a team of lawyers led by Mr Ogwu Onoja, SAN, the plaintiff said such licenses ought to be issued only when there is a shortfall of petroleum products in the country.
Dangote Refinery asked the court to declare that NMDPRA violates its statutory responsibilities under the Petroleum Industry Act (PIA) for not encouraging local refineries such as the one owned by the plaintiff.
In an affidavit deposed to by the Group General Manager of Government and Strategic Relations at Dangote Refinery, Ahmed Hashem, he told the court that import licenses granted to other companies by NMDPRA for the importation of AGO and Jet-A1 are crippling the plaintiff’s business which it committed substantial financial resources in billions of US dollars.
Hashem said that the plaintiff’s products are largely left unpatronized due to the actions of NMDPRA.
The testifier told the court that NMDPRA has threatened to impose and demand a 0.5% levy on the plaintiff on wholesales and off-takers, as well as another 0.5% levy on wholesales to Midstream and Downstream Gas Infrastructure Fund (MDGIF) through a letter released on June 10, 2024, contrary to statutory provisions that limit the implementation of levies on transactions within Free Zones.
He alleged there’s a grand conspiracy and concerted effort by International Oil Companies and interests, and the defendants, who are unhappy that Nigeria has an indigenous refinery ready to solve the lingering energy crisis and save the economy.
He added, “The intervention of the honourable court has become necessary to stem the incessant violation of statutory provisions by the 1st Defendant in favour of other entities such as the 2nd to 7th defendants.”
Meanwhile, there were indications that the matter may not be heard by the court as a
A member of the plaintiff’s legal team, Mr George Ibrahim, SAN, notified the court that efforts to settle the issue out of court are ongoing.
Justice Inyang Ekwo then adjourned the matter till January 20, 2025, for a report of settlement.
