…demands N100bn damages for alleged sabotage
In suit number FHC/ABJ/CS/1324/2024, Dangote Petroleum Refinery and Petrochemicals FZE is challenging the validity of import licenses issued to NNPC Limited, NMDPRA, AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited for the importation of refined petroleum products.
The plaintiff argues that these licenses are unwarranted given its refinery’s production capacity exceeds Nigeria’s current daily consumption.
Furthermore, the plaintiff seeks N100 billion in damages from NMDPRA for its alleged continued issuance of licenses for the importation of Automotive Gas Oil and Jet Fuel.
Dangote Refinery has applied for an injunctive order, specifically requesting that the NMDPRA (1st defendant) be restrained from issuing or renewing import licenses to the 2nd to 7th defendants or other entities for importing petroleum products.
Additionally, Dangote Refinery seeks N100bn in general damages from the 1st defendant and a court directive to seal off all tank farms, storage facilities, warehouses, and stations utilized by the defendants for storing imported refined petroleum products in Nigeria.
The plaintiff sought further relief, including a declaration of tax exemption, pursuant to Section 8(1) of the NEPZA Act, Sections 23(h) and 55(1) of the 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, as a registered Free-Zone Enterprise.
The plaintiff also requested a declaration that the 1st Defendant’s imposition of a 0.5% levy on petroleum products and an additional 0.5% wholesale levy for MDGIF contravenes relevant laws.
Furthermore, the plaintiff sought a mandatory injunction directing the 1st Defendant to withdraw import licenses issued to the 2nd-7th defendants and other companies for importing refined petroleum products into Nigeria, and an injunction restraining the 1st Defendant from imposing or demanding the aforementioned levies or any other sum.
According to the plaintiff, NMDPRA contravened the Petroleum Industry Act’s Sections 317(8) and (9) by granting petroleum product import licenses to defendants without evidence of domestic shortage.
Represented by Mr. Ogwu Onoja, SAN, the plaintiff argues licenses should only be issued in cases of shortfall. The plaintiff urges the court to declare NMDPRA’s failure to support local refineries, including its own, a breach of statutory responsibilities.
Ahmed Hashem’s affidavit reveals NMDPRA’s import licenses hinder the plaintiff’s business, leaving products unsold. NMDPRA also allegedly imposed unauthorized levies. The plaintiff claims conspiracy and seeks judicial intervention to stop NMDPRA’s violations favoring defendants.
According to Mr. George Ibrahim, SAN, plaintiff’s counsel, attempts are being made to resolve the issue amicably, as the defendants have expressed interest in an out-of-court settlement, prompting Justice Inyang Ekwo to schedule a report on the settlement for January 20, 2025.
