Dangote Refinery has filed a suit at the Federal High Court in Abuja against the Nigeria Midstream and Downstream Petroleum Regulatory Authority and some other major importers in the oil and gas sector.
In suit number FHC/ABJ/CS/1324/2024, Dangote Refinery sought N100bn in damages from NMDPRA for continuing to issue licences for the importation of refined products such as Automotive Gas Oil and Jet-A1 (aviation fuel).
The company claimed that its refinery’s production exceeded domestic consumption levels, rendering imports unnecessary.
However, oil marketers said that the market has been deregulated and dealers were free to import the commodities or buy from the Dangote refinery.
Dangote also sought the cancellation of import licences granted to the Nigerian National Petroleum Corporation Limited, Matrix Petroleum Services Limited, A. A. Rano Limited, and four other firms.
The refinery alleged that these imports sabotaged its operations by overflowing the market with refined products it already produced without shortfalls.
It explained that NMDPRA violated sections of the Petroleum Industry Act by issuing import licences despite no evidence of product shortfalls.
In a proclamation, the Dangote refinery’s General Manager, Government and Strategic Relations, Ahmed Hashem, said the importation of AGO and Jet-A1 has disrupted the refinery’s business operations, with its products left largely unsold.
Dangote refinery further claimed that NMDPRA threatened to impose a 0.5 per cent levy on wholesale buyers and off-takers, alongside another 0.5 per cent levy for the Midstream and Downstream Gas Infrastructure Fund, contrary to regulations governing free zones.
The refinery argued that such levies contradicted the purpose of free zones, which were intended to foster competition and attract foreign investments.
The suit also accused international oil companies and the defendants of conspiring to undermine Nigeria’s indigenous refining efforts.
The refinery further sought a court declaration confirming that it was exempted from all federal, state, and local taxes, in accordance with the Nigerian Export Processing Zone Act, the Companies Income Tax Act, and other relevant laws.