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Dangote Refinery and Petrochemicals announced yesterday its decision to settle out of court with the Nigerian National Petroleum Company Limited (NNPCL) and six other parties related to the import licenses granted by the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for petrol imports.
The company had earlier sought the intervention of a Federal High Court in Abuja, asking for the licenses to be invalidated and claiming N100 billion in damages from the NNPCL, identified as the first defendant.
Last night, Dangote announced in a statement its willingness to settle the case amicably with the NNPCL and other defendants, referring to it as an older case filed in June.
The statement, signed by the Group Chief Branding and Communications Officer, Anthony Chiejine, read: ‘’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.
‘’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.’’
Dangote had in the suit, marked: FHC/ABJ/CS/1324/2024, queried the propriety of the licence issued to the defendants to bring refined petroleum products into the country when there is no shortfall in its production.
Read also: Dangote Refinery Sues NNPCL To Annulment Import Licences
The other defendants named in the suit include the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.
Additionally, the plaintiff is asking the court to award N100 billion in damages against the NMDPRA, alleging that it has persistently issued import licenses to the NNPCL and other defendants for importing petroleum products like Automotive Gas Oil (AGO) and Jet Fuel (aviation turbine fuel) into Nigeria.
It told the court that the licences were issued to the defendants, “despite the production of AGO and Jet-A1 that exceeds the current daily consumption of petroleum products in Nigeria by the Dangote Refinery.”
Specifically, Dangote Refinery, among other things, applied for an order of injunction, restraining the 1st defendant (NMDPRA) from further issuing and/or renewing import licenses to the 2nd to 7th defendants or other companies to import petroleum products.
It further sought general damages in the sum of N100 billion against the 1st defendant, as well as an order of the court directing the 1st defendant to seal off all tank farms, storage facilities, warehouses, and stations used by the defendants for the storage of all refined petroleum products imported into Nigeria.
Other reliefs the plaintiff prayed for, included, “a declaration that by the provisions of Section 8(1) of the Nigerian Export Processing Zone Act (NEPZA), Sections 23(h) and 55(1) of the Companies Income Tax Act (CIT Act), Paragraph 6 of the Second Schedule to the CIT Act, Regulation 54(2)(a)(i) of the Dangote Industries Free Zone Regulation 2020, and the Finance Act, the plaintiff, being an entity duly registered as a Free-Zone Enterprise, is exempted from all federal, state, and local government taxes, levies, and other rates.
