ABUJA–The Nigeria National Petroleum Corporation Limited, NNPCL, has filed a preliminary objection to challenge the suit that Dangote Petroleum Refinery and Petrochemicals FZE, filed to gain the sole right to supply petroleum products in the country.
The NNPCL, in the legal process it filed through its team of lawyers led by Mr. Kehinde Ogunwumiju, SAN, described as incompetent, the legal action that Dangote Refinery lodged to invalidate its licence to import refined petroleum products into the country.
The plaintiff (Dangote Refinery) had among other things, questioned the propriety of allowing the NNPCL and other key oil marketers to bring refined petroleum products into the country when it has not recorded any shortfall in its own operations.
Cited as defendants in the suit marked: FHC/ABJ/CS/1324/2024, were; the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the NNPC and some major oil marketers that included AYM Shafa Limited, A. A. Rano Limited and Matrix Petroleum Services Limited.
According to the plaintiff, the NMDPRA acted in breach of Sections 317(8) and (9) of the Petroleum Industry Act, PIA, by issuing licenses for the importation of petroleum products to the defendants.
It told the court that 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.”
The plaintiff, therefore, prayed the court to award N100billion in damages against the NMDPRA for allegedly continuing to issue import licenses to NNPCL and the other defendants for the import of petroleum products such as Automotive Gas Oil (AGO) and Jet Fuel (aviation turbine fuel) into Nigeria.
Specifically, Dangote Refinery, among other things, 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 for the purpose of importing petroleum products.
It further sought an order of court directing the 1st defendant to seal off all tank farms, storage facilities, warehouses, and stations used by the defendants for the storage of all refined petroleum products imported into Nigeria.
“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.”
As well as,”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 favor of MDGIF or any other levy or sum against the plaintiff.”
However, in its objection, the NNPCL maintained that the suit was premature, even as it challenged the jurisdiction of the court to entertain it.
In the alternative, the NNPCL urged the court to strike out its name from the suit, insisting that the plaintiff was bereft of the locus standi (legal right) to seek such reliefs against it.
“The plaintiff’s suit is premature. The plaintiff’s suit discloses no cause of action. The 2nd defendant is not a competent party. The plaintiff’s suit is incompetent. This honourable court lacks the jurisdiction to hear this suit,” the NNPCL argued.
More so, the NNPCL contended that Dangote Refinery sued a non-existing party.
It noted that the court processes showed that NNPC, an entity that is currently non-existent, was listed as a defendant in the matter.
“This 2nd defendant in this suit as consistently seen on the face of the plaintiff’s originating summons, the affidavit in support and the written address, is Nigeria National Petroleum Corporation Limited, NNPC.
“A simple search on the CAC website shows that there is no entity called Nigeria National Petroleum Corporation Limited, NNPC,” it added.
It argued that NNPCL which filed the objection and the NNPC, are not the same, contending that the entity that was listed as a defendant in the matter, is a non juristic person.
It will be recalled that the three major oil marketers that were also cited as defendants in the suit- AYM Shafa Limited, A. A. Rano Limited and Matrix Petroleum Services Limited- earlier prayed the court to dismiss the suit.
They urged the court to stop what they described as plot by Dangote Refinery to monopolize the energy sector of the Nigerian economy.
The marketers argued that allowing the plaintiff to takeover the oil sector would spell doom for the country.
The defendants told the court that they are well qualified and entitled to be issued licence by the 1st defendant to import petroleum products into the country within the provisions of Section 317(9) of the PIA.
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They argued that vesting the plaintiff with the power of monopoly in Nigeria’s petroleum industry, as it is seeking through the legal action, would kill competitive pricing of petroleum products in the country, further deteriorate Nigeria’s critically ailing economy “and unleash untold hardship on Nigerians, all of which constitute a recipe for disaster in the polity.”
Justice Inyang Ekwo had earlier adjourned the matter till January 20, 2025, to enable the parties to explore an out-of-court settlement of the dispute, even as the plaintiff expressed its readiness to withdraw the suit.