The Federal High Court in Abuja has adjourned the hearing of a suit filed by Dangote Petroleum Refinery and Petrochemicals FZE against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and six other defendants to January 30, 2025. The adjournment, granted by Justice Inyang Ekwo, followed an application by the plaintiff’s counsel, George Ibrahim (SAN), seeking leave to amend the originating summons.
Background of the Case
In the suit, marked FHC/ABJ/CS/1324/2024, Dangote Refinery is challenging the issuance of oil import licenses by the NMDPRA to the Nigerian National Petroleum Corporation Limited (NNPCL) and five major oil marketers—AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.
Dangote Refinery argues that the issuance of these licenses violates Sections 317(8) and (9) of the Petroleum Industry Act (PIA), which stipulate that such licenses should only be granted in cases of proven shortfalls in local supply. The company accuses NMDPRA of neglecting its obligation under the PIA to support local refineries and seeks ₦100 billion in damages.
Counterarguments by Oil Marketers
The defendants, including AYM Shafa, A.A. Rano, and Matrix Petroleum Services, have filed a counter-affidavit urging the court to dismiss the suit. They argue that:
- Dangote Refinery does not currently produce sufficient petroleum products to meet Nigeria’s daily consumption needs.
- Monopolising the sector by halting import licenses would harm competition and destabilise the economy.
- The licenses issued comply with the PIA, the Federal Competition and Consumer Protection Act, and other relevant laws.
The marketers warned that relying solely on Dangote Refinery for petroleum supply could result in shortages and higher costs in the event of operational disruptions.
Court Proceedings
At Monday’s hearing, the plaintiff’s counsel, George Ibrahim, informed the court that the amended originating summons had not been served on all defendants due to errors in the original application. He requested additional time to serve all parties and address the issues raised.
Defense counsel confirmed that they had not been properly served. Counsel for the NMDPRA, Mathew Bukar (SAN), and counsel for AYM Shafa, A.A. Rano, and Matrix Petroleum, Ahmed Raji (SAN), requested proper service before the case could proceed. Counsel for the NNPCL, Ademola Abimbola, noted that the plaintiff had amended the suit after the case became public, claiming the NNPCL had been sued under an incorrect registered name.
Justice Ekwo emphasized the importance of ensuring proper service and preparation before the next hearing, stating:
“You have not been able to position this matter to be heard, and that is the cause of the adjournment.”
The judge granted the plaintiff’s counsel ten days to serve all parties and adjourned the case to January 30, 2025.
Pending Joinder Request
Another party, represented by Olanrewaju Oshinaike, sought to join the case but was instructed to wait until the issue of service is resolved.
Implications of the Case
The outcome of this case could have significant implications for Nigeria’s petroleum sector, particularly regarding competition and regulatory compliance. It also highlights tensions between efforts to support local refineries and the need for a diversified and competitive market to ensure a stable supply of petroleum products.
The court will reconvene on January 30, 2025, to proceed with the case.
