Understanding the NNPC vs Dangote Refinery Legal Battle on Import Licenses
Dangote Refinery has filed a lawsuit against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), seeking to revoke the import licenses issued to NNPC and several other companies.
The refinery claims that these licenses are being issued despite the Dangote Refinery’s ability to meet the domestic demand for petroleum products like Automotive Gas Oil (AGO) and Jet-A1.
This, according to Dangote, is causing its products to be underutilized, thus negatively impacting the company’s business and its substantial investment in Nigeria’s energy sector.
The lawsuit also includes a request for N100 billion in damages and seeks a court order to stop NMDPRA from issuing further import licenses to these companies.
Dangote argues that NMDPRA is violating statutory provisions by issuing these licenses when local refineries, including Dangote’s, can supply the market.
Additionally, the refinery is challenging certain financial obligations and levies that NMDPRA has imposed, arguing they conflict with Nigeria’s Free Zone regulations.