How Importation of petroleum merchandise is Irritating our Effort – Dangote Refinery
The Dangote Petroleum Refinery and Petrochemicals FZE says importation of petroleum merchandise is crippling its enterprise.
The 650,000 barrels of gasoline per day facility mentioned this in a swimsuit filed earlier than the Federal Excessive Court docket in Abuja, looking for to nullify import licences issued to the Nigeria Nationwide Petroleum Company Restricted (NNPC) and 5 different corporations for the aim of importing refined petroleum merchandise.
The Information Company of Nigeria (NAN) stories that the opposite 5 corporations are Aym Shafa Restricted, A. A. Rano Restricted, T. Time Petroleum Restricted, 2015 Petroleum Restricted and Matrix Petroleum Providers Restricted.
Dangote Refinery, in a swimsuit marked: FHC/ABJ/CS/1324/2024 and filed by Ogwu Onoja, SAN, earlier than Justice Inyang Ekwo, had sued Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and NNPCL as 1st and 2nd defendants.
Additionally listed as third to seventh defendants respectively within the originating summons dated Sept. 6 are Aym Shafa Restricted, A. A. Rano Restricted, T. Time Petroleum Restricted, 2015 Petroleum Restricted, and Matrix Petroleum Providers Restricted.
The corporate equally sought a N100 billion in damages in opposition to NMDPRA for allegedly persevering with to subject import licences to NNPCL and the 5 corporations for importing petroleum merchandise.
These it mentioned are Automotive Gasoline Oil (AGO) and Jet Gas (aviation turbine gasoline) into Nigeria, “regardless of the manufacturing of AGO and Jet-A1 that exceeds the present each day consumption of petroleum merchandise in Nigeria by the Dangote Refinery.”
The plaintiff prayed the court docket to declare that NMDPRA is allegedly in violation of Sections 317(8) and (9) of the Petroleum Business Act (PIA) by issuing licences for the importation of petroleum merchandise.
It argued that such licences ought to solely be issued in circumstances the place there’s a petroleum product shortfall.
It additionally urged the court docket to declare that NMDPRA is in violation of its statutory duties below the PIA for not encouraging native refineries.
In an affidavit deposed by Ahmed Hashem, the Group Basic Supervisor of Authorities and Strategic Relations at Dangote Refinery, the officer averred that the import licences granted to different corporations by NMDPRA for the importation of AGO and Jet-A1 are crippling the plaintiff’s enterprise, to which it has dedicated substantial monetary sources in billions of US {dollars}.
He mentioned the plaintiff’s merchandise are largely left un-patronised as a result of alleged actions of NMDPRA.
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He said that NMDPRA had threatened to impose and demand 0.5% levy on the plaintiff on wholesales and off-takers, in addition to one other 0.5% levy on wholesales to the Midstream and Downstream Gasoline Infrastructure Fund (MDGIF) by way of a letter dated June 10 opposite to statutory provisions that restrict the implementation of levies on transactions inside Free Zones.
He emphasised that the foundational objective of building Free Zones is to foster competitors, entice international funding and create tax havens.
Hashem additional averred that there’s an alleged grand conspiracy and concerted effort by Worldwide Oil Firms (IOC) and pursuits, along with the defendants, who’re sad that Nigeria has an indigenous refinery prepared to resolve the lingering power disaster and save the economic system.
“The intervention of the honourable court docket has develop into needed with a purpose to stem the incessant violation of statutory provisions by the first defendant in favour of different entities such because the 2nd to seventh defendants,” he said.
He mentioned the plaintiff is vastly distressed, and its funding’s danger being jeopardised except the honourable court docket intervenes.
Dangote Refinery, due to this fact, sought an order of injunction restraining the first defendant from additional issuing and/or renewing import licences to the 2nd to seventh defendants or different corporations for the aim of importing petroleum merchandise.
It sought “common damages within the sum of N100,000,000,000 in opposition to the first defendant (NMDPRA).”
It additionally sought an order of court docket directing the NMDPRA to seal off all tank farms, storage amenities, warehouses and stations utilized by the defendants for the storage of all refined petroleum merchandise imported into Nigeria.
“A declaration that by the provisions of Part 8(1) of the Nigerian Export Processing Zone Act (NEPZA), Sections 23(h) and 55(1) of the Firms
“An order of injunction restraining the first defendant from imposing and demanding a 0.5% levy meant for off-takers of petroleum merchandise straight and a further 0.5% wholesale levy in favor of MDGIF or every other levy or sum in opposition to the plaintiff.
When the matter was referred to as on Monday, George Ibrahim SAN, who appeared for Dangote Refinery, knowledgeable the court docket that the defendants had reached out to them for reconciliation.
“My lord, there’s a improvement on this matter, which the lead counsel, James Onoja, SAN, has requested me to deliver to the court docket’s consideration.
“On the time we have been making an attempt to serve the originating summons on the defendants, they began discussing,” he mentioned.
Ibrahim, due to this fact, sought an adjournment to permit the events to discover our-of-court settlement.
He steered the court docket ought to adjourn for both a attainable report of settlement or a report of service.
Justice Ekwo consequently adjourned the matter till Jan. 20, 2025 for report of settlement or service.