… As students urge FG to end fuel importation, back local refineries
ABUJA — The Federal High Court in Abuja on Wednesday dismissed the ₦100 billion suit filed by Dangote Petroleum Refinery and Petrochemicals FZE against the Nigerian National Petroleum Company Limited (NNPCL) and six others over an oil import licence dispute.
Justice Mohammed Umar dismissed the case following an oral application by the defence lawyers after counsel for Dangote, C. O. Adegbe, formally withdrew the suit.
The matter, which was earlier before Justice Inyang Ekwo, started afresh after being reassigned to Justice Umar.
Dangote Refinery had sued the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian National Petroleum Company Limited (NNPCL) as the 1st and 2nd defendants, while AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited were joined as the 3rd to 7th defendants.
Through its lawyer, Ogwu Onoja, SAN, Dangote sought the nullification of import licences issued by the NMDPRA to NNPCL and the five companies for importing refined petroleum products. The refinery also sought ₦100 billion in damages against the NMDPRA for allegedly continuing to issue import licences in violation of the Petroleum Industry Act (PIA).
At the resumed hearing on Wednesday, Adegbe informed the court that the plaintiff had filed a notice of discontinuance dated July 28 and sought to withdraw the case.
Counsel for the NMDPRA, I. B. Ahmad, did not oppose the withdrawal but urged the court to dismiss the case entirely rather than strike it out.
Similarly, Chris Ekemezie, counsel for AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited, aligned with Ahmad’s submission, arguing that since issues had already been joined and processes exchanged, the matter should be dismissed with cost.
“It seems what the plaintiff plans to do is to go and panel-beat its case and come back after seeing that it is weak. So we urge my lord to dismiss it with substantive cost,” Ekemezie said.
Mofesomo Tayo-Oyetibo, SAN, counsel for T. Time Petroleum Limited and 2015 Petroleum Limited, also supported the application for dismissal.
Adegbe, however, argued that the matter should be struck out, relying on previous discussions between her client and the defendants.
Justice Umar dismissed the suit without cost, ruling that since parties had already joined issues, the appropriate order was a dismissal.
“The case on record is that parties have joined issues and what remains is for parties to adopt their processes. It is at this stage that the plaintiff came for a withdrawal. In fact, the matter is deemed for dismissal and cost. But since cost is not asked for, the matter is hereby dismissed without cost,” the judge held.
Dangote Refinery had earlier asked the court to declare that the NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act by issuing import licences for petroleum products, arguing that such licences should only be granted when there is a shortfall in local production.
The NNPCL, in its preliminary objection, asked the court to strike out the suit for being incompetent and disclosing no cause of action.
In an affidavit supporting its objection, Isiaka Popoola, a clerk in the law firm of Afe Babalola & Co., stated that the entity sued by Dangote as “Nigeria National Petroleum Corporation Limited” does not exist.
“A simple search on the Corporate Affairs Commission website shows that there is no entity called Nigeria National Petroleum Corporation Limited,” Popoola stated, arguing that the court lacked jurisdiction.
The NMDPRA, in a counter affidavit deposed to by Idris Musa, a senior regulatory officer, maintained that the suit was unmeritorious, as Dangote’s current production was insufficient to meet national demand.
Musa explained that, in line with Section 317(9) of the PIA, NMDPRA issued import licences to companies with proven capacity to bridge supply gaps and prevent market monopoly.
He dismissed Dangote’s allegation of a conspiracy against the refinery as baseless.
In their joint counter affidavit filed on November 5, 2024, AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited warned that granting Dangote’s prayers would create a monopoly and destabilise the oil sector, arguing that the refinery was not yet producing sufficient products for Nigeria’s consumption.
Justice Ekwo had earlier, on March 18, dismissed NNPCL’s preliminary objection for being incompetent and granted Dangote’s motion to amend its originating process to correct NNPCL’s name.
He also dismissed the motion for joinder filed by the Federal Competition and Consumer Protection Commission (FCCPC), describing it as an unnecessary intervention.
Meanwhile, Nigerian students under the aegis of the National Association of Polytechnic Students (NAPS) have called on the Federal Government to end the importation of refined petroleum products and support local refineries, particularly the Dangote Refinery, as a crucial step towards achieving national self-sufficiency in fuel production and economic stability.
The students made the call during a solidarity rally in Benin City on Wednesday, with the theme “Protecting National Assets, Securing Youth Futures: NAPS Solidarity with Dangote Refinery for Economic Growth and Stability.”
Hundreds of students marched with placards through major streets and the Oba Ovonramwen Square, voicing support for homegrown industrialization and urging the Federal Government to protect local refineries from what they described as “economic sabotage.”
Addressing the rally, NAPS National President, Comrade Eshiofune Paul Oghayan, said the Dangote Refinery represents a beacon of hope for Nigeria’s industrial and economic rebirth.
He noted that the refinery, if fully supported, could end decades of dependence on imported fuel, conserve foreign exchange, and stabilize the Naira.
“We call on the Federal Government to defend and protect the Dangote Refinery and other local refineries as national strategic assets,” Oghayan said.
“Any sabotage against them must be treated as economic terrorism.”
He urged President Bola Ahmed Tinubu to ensure 100 percent crude oil supply to local refineries to enable them to operate at full capacity and reduce the cost of fuel in the domestic market.
“While we appreciate the 15 percent reduction in fuel importation approved by Mr. President, we insist that half-measures cannot deliver full recovery. Nigeria must refine what we use,” he added.
The students also demanded the passage of a Local Refining Protection Bill by the National Assembly to criminalize acts of sabotage against local refining operations.
They further urged the dismantling of entrenched importation cartels that, they alleged, profit from Nigeria’s long-standing dependence on foreign fuel.
“We urge the Federal Government to scrap PENGASSAN, NUPENG, and DAPMAN if they continue to act as tools of economic blackmail and regression,” the group said.
According to NAPS, prioritizing local refining will create thousands of jobs for Nigerian youths, provide industrial training opportunities for polytechnic students, and re-establish Nigeria as Africa’s refining hub.
“If we lose this refinery, we lose more than fuel, we lose a generation of industrial opportunity, jobs, research, technology transfer, and national dignity,” Oghayan concluded.