Court Deals a Blow to NNPCL as Dangote Refinery’s N100 billion Legal Fight Moves Forward
This post has already been read at least 11169 times!
In a significant legal development, the Federal High Court sitting in Abuja has struck out the preliminary objection filed by the Nigerian National Petroleum Company Limited (NNPCL) in an ongoing case brought by Dangote Petroleum Refinery and Petrochemicals FZE. The case involves the issuance of petroleum product import licenses by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and five other oil companies. The court’s decision clears the path for the substantive hearing of a suit that has garnered substantial attention in the energy sector.
Justice Inyang Ekwo, presiding over the case, delivered the ruling on March 18, 2025, dismissing NNPCL’s objection as procedurally incompetent. During the proceedings, NNPCL’s counsel, Ademola Abimbola (SAN), had sought to have the suit dismissed on the grounds of jurisdictional issues or, alternatively, to have NNPCL removed as a party to the suit. However, the court rejected these arguments, citing a failure on NNPCL’s part to file a counter-affidavit addressing the originating process filed by the plaintiff.
The case is being championed by Dangote Refinery’s legal team, led by George Ibrahim (SAN), who characterized NNPCL’s objection as unnecessary. Ibrahim also successfully petitioned the court to allow an amendment to the suit, which sought to correct the name of the second defendant. The court agreed, granting the amendment and describing the misnomer as a technical error that posed no threat to the substantive legal issues at hand.
The lawsuit stems from allegations by Dangote Refinery that import licenses for petroleum products were issued by the NMDPRA despite the refinery’s capacity to meet domestic demand.
Dangote Refinery argues that such licensing undermines the local refining industry and violates Nigeria’s self-sufficiency goals in the petroleum sector. The refinery is seeking ₦100 billion in damages and an injunction to prevent further issuance of such licenses.
In his ruling, Justice Ekwo highlighted the procedural missteps in NNPCL’s application. He explained that under Nigerian law, objections of this nature must adhere to specific protocols, including the filing of a defense to the plaintiff’s claims before raising preliminary issues. The judge further noted that these lapses rendered the objection legally untenable, clearing the way for the case to proceed to a full hearing.
This legal battle has significant implications for Nigeria’s oil and gas sector, as it touches on critical issues of local content development, regulatory oversight, and the balance between domestic production and imports. Industry analysts suggest that a victory for Dangote Refinery could prompt a reevaluation of import licensing policies and foster greater support for local refining initiatives.
For now, stakeholders await the next phase of the case with bated breath, as it moves toward a substantive hearing that could reshape key regulatory practices in the petroleum sector. With the court’s dismissal of NNPCL’s objection, Dangote Refinery has secured a critical first step in its quest for justice.
The coming months promise to be pivotal as the industry and the public follow the proceedings closely.
This post has already been read at least 11169 times!
