Dangote Refinery and Petrochemicals has announced that it is seeking an out-of-court settlement with the Nigerian National Petroleum Company Limited (NNPCL) and other parties involved in a petrol import licensing case.
The company had earlier taken the case to court, challenging the legality of import licenses granted to several companies for bringing refined petroleum into Nigeria. However, recent developments suggest that both sides are now willing to resolve the issue amicably.
The dispute began when Dangote Refinery filed a lawsuit at the Federal High Court in Abuja, demanding the cancellation of import licenses given by the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to NNPCL and six other companies.
In addition, Dangote sought damages of N100 billion, accusing the NNPCL and others of undermining its operations by continuing to import fuel despite the refinery’s production exceeding local demand.
According to a statement released by Dangote Refinery’s Group Chief Branding and Communications Officer, Anthony Chiejine, the case originated in June and was officially filed on September 6, 2024.
However, recent discussions between the parties have led to progress, and the company is now moving toward an out-of-court settlement.
The statement noted that these discussions were initiated after a directive from President Bola Tinubu regarding sales of crude oil and refined products in naira, which had been approved by the Federal Executive Council (FEC).
“This is an old issue that started in June and culminated in a matter filed on Sept 6, 2024. Currently, the parties are in discussion since President Bola Tinubu’s directive on crude oil and refined product sales in naira initiative, which the Federal Executive Council, FEC, approved,” the statement read.
While the company had initially taken legal action, the statement emphasized that the situation has since changed.
‘’Currently, the parties are in discussion since President Bola Tinubu’s directive on crude oil and refined product sales in naira initiative, which the Federal Executive Council, FEC, approved.
‘’We have made tremendous progress in that regard and events have overtaken this development. No party has been served with court processes and there is no intention of doing so. We have agreed to put a halt to the proceedings.
‘’It is important to stress that no orders have been made and there are no adverse effects on any party. We understand that once the matter comes up in January 2025, we will be in a position to formally withdraw the matter in court.’’
The lawsuit, filed under the reference number FHC/ABJ/CS/1324/2024, challenged the legality of licenses issued to import refined petroleum products such as Automotive Gas Oil (AGO) and Jet-A1 fuel.
Dangote’s legal team argued that there was no need for these imports, given that its refinery was producing more than enough to meet Nigeria’s demand. The company also asked the court to order NMDPRA to stop issuing new licenses to other importers and to impose a N100 billion fine for damages.
In the legal filings, Dangote claimed that NMDPRA’s actions were crippling its business by allowing foreign imports to compete with locally produced fuel. The company argued that it had invested billions of dollars in the refinery to solve Nigeria’s fuel crisis, but its efforts were being undermined by import licenses issued to competitors.
While the legal battle seemed set to go to trial, recent statements from Dangote suggest that both sides are now focused on finding a peaceful solution. The court case is scheduled for a hearing in January 2025, but the company’s latest comments indicate that they hope to withdraw the lawsuit before then, assuming a settlement is reached.
Justice Inyang Ekwo, the judge presiding over the case, has adjourned the matter until January 20, 2025, to allow time for both parties to finalize their settlement. A member of Dangote’s legal team, Mr. George Ibrahim, Senior Advocate of Nigeria (SAN), confirmed in court that discussions are underway to resolve the issue outside of the courtroom.
