BREAKING: Dangote Refinery Sues NNPCL, Matrix, and Four Others, Seeks License Revocation, Demands N100bn from NMDPRA
Dangote Refinery Seeks Court Annulment of Competitors’ Import Licenses, Demands N100 Billion in Damages.
Dangote Refinery has filed a lawsuit seeking the annulment of import licenses held by the Nigerian National Petroleum Company Limited (NNPCL), Matrix Energy, and four other companies. The move comes amid escalating tensions within the energy sector over fuel import rights and regulatory compliance.
The case, filed at a Federal High Court, highlights Dangote Refinery’s challenge to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The company accuses the regulatory body of unlawfully granting and renewing import licenses for competitors, despite the commencement of its operations aimed at addressing Nigeria’s domestic fuel demands.
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Dangote Refinery is also pursuing N100 billion in damages from the NMDPRA, citing economic losses and alleged regulatory misconduct. The lawsuit asserts that the continued importation of petroleum products by NNPCL and the other firms undermines the refinery’s operations and contradicts national policy objectives of reducing fuel imports.
“The granting of import licenses to NNPCL, Matrix Energy, and other companies runs contrary to the Nigerian government’s goal of achieving fuel self-sufficiency and promoting local refining capacity,” a source familiar with the case said.
This legal action marks a turning point in the dynamics between local refining and import-dependent supply chains. Dangote Refinery, which was commissioned earlier this year, was widely expected to significantly reduce Nigeria’s reliance on fuel imports. However, persistent imports by major energy companies have raised concerns about market competition and regulatory inconsistencies.
Industry analysts predict that the outcome of this lawsuit could reshape Nigeria’s petroleum sector. If Dangote succeeds in its quest to nullify the licenses, it would alter the market structure, potentially granting the refinery a dominant position in local supply chains.
The NNPCL and the other companies involved have yet to issue statements responding to the legal claims. The NMDPRA, tasked with regulating Nigeria’s petroleum sector, also remains silent on the matter as of the time of reporting.
The court is expected to schedule a hearing soon, where the various parties will make their submissions. The case underscores the complex interplay of business interests, regulatory oversight, and national policy within Nigeria’s energy landscape.
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