Inyang Ekwo, a judge of the federal high court, in Abuja has postponed the hearing of a lawsuit filed by Dangote Petroleum Refinery and Petrochemicals FZE, challenging the issuance of oil import licences to several oil marketing firms.
The case has been rescheduled for 30 January.
The hearing was delayed because Dangote Refinery had not served its amended originating summons on the defendants.
The suit names the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian National Petroleum Corporation (NNPC) Limited as the first and second defendants.
It also includes AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited as the third to seventh defendants, respectively.
Dangote Refinery is seeking the court’s intervention to nullify licences granted by NMDPRA to these companies for importing refined petroleum products.
Read also: Dangote Refinery hikes petrol price to N955/Litre amid Brent surge
The refinery argues that NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA), which permit such licences only when there is a domestic shortfall in petroleum products.
The company is also demanding N100 billion in damages from NMDPRA for allegedly issuing these licences inappropriately.
At the proceedings, the refinery’s counsel, George Ibrahim, explained that delays in serving the amended summons were due to a motion filed to correct errors in the original application.
Lawyers for the defendants, including NMDPRA, NNPC, and the oil marketing companies, confirmed they had not yet received the updated documents, with some noting they were only served shortly before the court session began.
NMDPRA, in a counter-affidavit, dismissed the claims as unfounded and argued that Dangote Refinery is not entitled to the reliefs sought.
The agency stated that the refinery’s current production levels do not meet national daily requirements, necessitating the issuance of import licences to other companies to bridge the gap. The regulatory body emphasised its mandate to promote competition and prevent monopolies in the oil and gas sector.
NNPC also filed a preliminary objection, asking the court to strike out the case as incompetent.
The oil marketers, in a joint response, warned that granting Dangote Refinery’s request could destabilise Nigeria’s oil sector. They accused the refinery of seeking to monopolise the market while failing to meet the nation’s demand for petroleum products.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
