Fuel import: Court strikes out NNPCL’s request to dismiss Dangote’s suit

Photo combo of NNPCL’s Mele Kyari and Dangote Refinery.
The Federal High Court in Abuja on Tuesday rejected the Federal Competition and Consumer Protection Commission’s (FCCPC) request to be joined in a lawsuit filed by Dangote Petroleum Refinery. The refinery is seeking to stop the Nigerian National Petroleum Company Limited (NNPCL) and other oil marketers from importing refined petroleum products into the country.

In his ruling, Justice Inyang Ekwo dismissed the FCCPC’s application, stating that the case could be effectively decided without the commission’s involvement. He ruled that the FCCPC was neither a relevant nor necessary party to the suit.

Dangote Refinery, in the suit (marked FHC/ABJ/CS/1324/2024), named the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), NNPCL, and five other companies as defendants. The refinery is seeking to have the import licenses issued by NMDPRA to NNPCL and the other companies annulled, arguing that such licenses should only be granted in the event of a petroleum product shortfall. The refinery asserts that it has the capacity to meet local demand for petroleum products.

Additionally, Dangote Refinery is seeking N100 billion in damages from NMDPRA for allegedly continuing to issue import licenses, which it claims harms the local industry.

The FCCPC had sought to join the case, arguing that Dangote Refinery’s actions could lead to monopolistic practices in the petroleum industry, which would undermine the commission’s mandate to promote a free market. However, Dangote Refinery opposed the application, accusing the FCCPC of meddling in a matter governed by the Petroleum Industry Act (PIA).

In response to the refinery’s objections, NNPCL also filed a preliminary objection, challenging the suit on the grounds of jurisdiction and questioning the accuracy of the defendant’s naming in the suit. NNPCL argued that the refinery had sued a non-existent entity, “NNPC,” and insisted that the correct name of the defendant was Nigerian National Petroleum Company Limited.

Justice Ekwo dismissed NNPCL’s jurisdictional objection, affirming that the case could proceed. He also granted Dangote Refinery’s request to amend the suit to reflect the correct name of NNPCL. The case has been adjourned to March 6 for further proceedings.