Court Dismisses Dangote Refinery’s N100bn Suit Against NNPCL, Others

The Federal High Court in Abuja, on Wednesday, dismissed the N100bn suit filed by Dangote Petroleum Refinery and Petrochemicals FZE against Nigeria National Petroleum Company Limited (NNPCL) and its co-defendants over an oil import licence dispute.

Justice Mohammed Umar dismissed the suit following an oral application by the defence lawyers after counsel who appeared for Dangote, C.O. Adegbe, withdrew the suit.

The suit, which was formerly before Justice Inyang Ekwo, began denovo (afresh) following its reassignment to Justice Umar.

Dangote Refinery had sued the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Nigeria National Petroleum Corporation Limited (NNPCL) as 1st and 2nd defendants.

Also joined in the suit are AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited as 3rd to 7th defendants, respectively.

The oil company, through its lawyer, Ogwu Onoja, had prayed the court to nullify import licences issued by NMDPRA to the NNPCL and the five other companies for the purpose of importing refined petroleum products.

It equally sought a N100 billion in damages against NMDPRA for allegedly continuing to issue import licences to NNPCL and the five companies for importing petroleum products, among other reliefs.

Upon resumed hearing in the matter on Wednesday, Adegbe informed the court that though the matter was scheduled for hearing, the plaintiff (Dangote) had a notice of discontinuance dated and filed on July 28.

She said the refinery had resolved to withdraw the case and urged the court to strike it out.

Responding, I.B. Ahmad, who appeared for NMDPRA did not oppose Adegbe’s application.

The lawyer, who acknowledged the receipt of the notice of discontinuance, prayed the court not to strike the case out but to dismiss it’s in its entirety.

Also, Chris Ekemezie, who represented the 3rd, 4th and 7th defendants (AYM Shafa Limited, A. A. Rano Limited and Matrix Petroleum Services Limited), urged the court to dismissed the suit.

Ekemezie, who cited previous Supreme Court and Appeal Court cases, said where such application is made, the proper thing to be done is to dismiss it.

According to him, this is a matter that was commenced by originating summons and issues have been joined and pleadings exchanged, and the honourable court had adjourned for today for hearing of the processes filed.

“It seems what the plaintiff (Dangote) plans to do is to go and panel-beat his case and come back, after seeing that its case is bad.

“So we urge my lord to dismiss it with substantive cost,” he said.

Mofesomo Tayo-Oyetibo, SAN, counsel for the 5th and 6th (T. Time Petroleum Limited, 2015 Petroleum Limited), also did not oppose the application for withdrawal of the suit.

He, however, aligned himself with the submissions of the other defence lawyers.

But Adegbe disagreed with the application by the defence for the dismissal of the case.

She based her argument on the prior conversation her client had with the defendants that the matter should be struck out.

Justice Umar, consequently, dismissed the suit without any cost.

“The case on records is that parties have joined issues and what is remain is for parties to adopt their processes.

“It is at this stage that the plaintiff came for a withdrawal.

“In fact, the matter is deemed for dismissal and cost.

“But since it is not asked for, the matter is hereby dismissed without cost,” he ruled.

Dangote Refinery had prayed the court to declare that NMDPRA was in violation of Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licenses for the importation of petroleum products.

It stated that such licenses should only be issued in circumstances where there is a petroleum product shortfall.

But NNPCL, in its preliminary objection, prayed the court to strike out the case for being incompetent.

The NNPCL argued that the suit was premature and it disclosed no cause of action against it.

“This honourable court lacks the jurisdiction to hear this suit,” the NNPCL said.

In the affidavit in support of the application deposed to by Isiaka Popoola, a clerk in the law firm of Afe Babalola & Co, counsel to the NNPCL, he said one of their lawyers, Esther Longe who perused Dangote’s originating summons, affidavit and written address told him that an examination of the processes showed that NNPC as sued by the refinery was non-existent entity.

Popoola averred that the court lacked jurisdiction over the 2nd defendant sued as Nigeria National Petroleum Corporation Limited (NNPCL).

“A simple search on the CAC website shows that there is no entity called “Nigeria National Petroleum Corporation Limited (NNPC).”

According to Popoola, the 2nd defendant/objector is not one and the same with the 2nd defendant sued by the plaintiff.

He urged the court to strike out the suit.

Also, the NMDPRA, in its counter affidavit deposed to by Idris Musa, a Senior Regulatory Officer in the office, prayed the court to dismiss the suit as it was misconceived, unmeritorious and incompetent.

Musa argued that Dangote Refinery is not entitled to any of the reliefs sought.

The official, in the application dated and filed Dec. 13, 2024, said the current production of Dangote Refinery is yet to meet the national daily petroleum products sufficiency requirement.

He said based on this and in compliance with Section 317 [9] of the PIA (Petroleum Industry Act), NMDPRA issued licences to import petroleum products to bridge product shortfalls to companies with good track records of international products trading.

Besides, he said the agency is also mandated to promote competition and prevent abuse of dominant market positions and unhealthy monopoly in the oil and gas sector.

He denied the allegation that NMDPRA is partaking in any purported “grand conspiracy and concerted efforts” against the refinery, describing it as “an allegation for which the plaintiff has provided no facts or evidence in support.”

The oil marketers, in a joint counter affidavit filed on Nov. 5, 2024, told the court that granting Dangote’s application would spell doom for the country’s oil sector.

According to them, the plan to monopolise the oil sector is a recipe for disaster in the country.

The three marketers; AYM Shafa Limited, A. A. Rano Limited and Matrix Petroleum Services Limited, in their response, said the plaintiff did not produce adequate petroleum products for the daily consumption of Nigerians.

They argued that there was nothing placed before the court to prove the contrary

Justice Ekwo had, on March 18, dismissed the NNPCL’s objection against Dangote’s suit

The judge, in the ruling, dismissed the objection on the grounds that the application was incompetent.

Justice Ekwo held that the NNPCL ought to have filed a defence in the form of a counter affidavit to the Dangote Refinery’s originating process before raising an objection.

The judge, who also dismissed the NNPCL preliminary objection, challenging the jurisdiction of the court, granted Dangote’s motion to amend its originating motion by correcting the name of the NNPCL.

Besides, Justice Ekwo equally dismissed the motion for joinder filed by Federal Competition and Consumer Protection Commission (FCCPC) for being an unnecessary party and as a “meddlesome interloper.”