Court strikes out NNPC’s objection, rejects FCCPC’s joinder in Dangote Refinery’s N100bn suit

The Federal High Court in Abuja has struck out the preliminary objection filed by the Nigerian National Petroleum Company (NNPC) Limited against Dangote Petroleum Refinery and Petrochemicals FZE’s N100 billion import license suit.

The court also dismissed the Federal Competition and Consumer Protection Commission’s (FCCPC) request to join the suit, dealing the defendants with a double legal setback.

Justice Inyang Ekwo ruled against NNPC’s preliminary objection, which challenged the suit’s competence and Dangote Refinery’s legal standing. refinery had sued NNPC, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and other oil marketers, including Matrix Petroleum Services Limited and A.A. Rano Limited, over the issuance of import licenses for refined petroleum products.

Dangote Refinery argued that these imports were unnecessary, as it already produces sufficient quantities of Automotive Gas Oil (AGO) and Jet-A1 fuel to meet Nigeria’s demand.

The refinery also sought N100 billion in damages from NMDPRA for allegedly issuing licenses in violation of Sections 317(8) and (9) of the Petroleum Industry Act (PIA), which permits imports only when there is a proven supply shortfall.

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NNPC’s legal team, led by Ademola Abimbola, contended that Dangote erroneously sued the defunct “Nigeria National Petroleum Corporation” instead of the legally recognised “Nigerian National Petroleum Company Limited.”

The company also argued that Dangote Refinery lacked the authority to determine supply shortfalls and that the Backward Integration Policy under the PIA had not yet been implemented.

However, Justice Ekwo ruled that NNPC’s objection was “incompetent” as it failed to file a counter affidavit but instead relied solely on a preliminary objection. The judge emphasised that jurisdictional issues could be addressed at the time of judgment and struck out NNPC’s motion.

Ekwo also granted Dangote Refinery’s request to amend its court filings to correctly name NNPC as a defendant, ordering that the amended suit be served on all parties.

In a separate ruling, the court dismissed FCCPC’s application to join the case. The commission had argued that the lawsuit raised concerns about anti-competition and the potential creation of a monopoly in Nigeria’s petroleum sector.

FCCPC’s counsel, Olarenwaju Osinaike, asserted that Nigeria operates a free-market economy and that restricting imports could lead to Dangote Refinery dominating the market.

The commission maintained that its statutory mandate included preventing anti-competitive practices and misleading business conduct.

However, Dangote Refinery’s legal team, led by George Ibrahim, opposed the application, arguing that FCCPC had no role in a case centred on the implementation of the PIA.

The refinery maintained that its suit was aimed at ensuring compliance with the law, not monopolisation, as NMDPRA had allegedly continued issuing import licenses despite no proven shortfall.

Justice Ekwo ruled that FCCPC failed to establish its relevance to the case, stating that the matter could be resolved without the commission’s involvement. He described FCCPC’s application as “unmeritorious” and dismissed it.

Following the rulings, the court adjourned the case until May 6, 2025, when Dangote Refinery will present its amended suit.