The Nigeria National Petroleum Corporation Limited (NNPCL) has filed a preliminary objection in response to a lawsuit brought by Dangote Petroleum Refinery and Petrochemicals FZE. The suit seeks to grant Dangote Refinery exclusive rights to supply petroleum products in Nigeria, challenging the issuance of import licenses for refined products to NNPCL and other oil marketers.

In its response, NNPCL, led by its legal team under Mr. Kehinde Ogunwumiju (SAN), described Dangote Refinery’s suit as “incompetent.” The lawsuit, filed at the Federal High Court in Abuja, alleges that the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) improperly issued licenses to NNPCL and other companies despite Dangote Refinery’s ability to meet the country’s daily demand for petroleum products. Dangote Refinery seeks N100 billion in damages and a court order to prevent NMDPRA from issuing further import licenses to the defendants.

The refinery’s suit argues that NMDPRA violated sections of the Petroleum Industry Act (PIA) by issuing licenses for petroleum imports when Dangote Refinery, which produces sufficient Automotive Gas Oil (AGO) and Jet-A1, is capable of meeting the local demand. It seeks to block NMDPRA from issuing or renewing import licenses for companies other than Dangote and local refineries.

In contrast, three oil marketers—AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited—filed a joint counter affidavit, urging the court to dismiss Dangote’s suit. They argue that granting Dangote’s request for monopolistic control over the sector would be detrimental to Nigeria’s oil industry. The marketers contend that they have legally met all requirements for the importation of petroleum products and that the licenses issued to them are valid.

NNPCL, in its objection, maintained that the suit was premature and questioned the court’s jurisdiction to hear the case. The corporation further challenged the legality of the parties involved, noting that Dangote had incorrectly sued a non-existent entity, the Nigeria National Petroleum Corporation (NNPC), which has been replaced by NNPCL.

The court has adjourned the case to January 20, 2025, to allow the parties time to explore out-of-court settlement options, though Dangote Refinery has expressed a willingness to withdraw the suit if an agreement is reached.