Dangote Refinery and Petrochemicals said yesterday it was settling out of court with the Nigerian National Petroleum Company Limited, NNPCL, and six others over import licences granted them by the Nigeria Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, to import petrol into the country.
Recall that the company had approached a Federal High Court
in Abuja, praying it to nullify the licenses and also award it N100billion
damages against the 1st defendant which is the NNPCL
However, in a statement last night, Dangote said it was
ready to settle the case amicably with NNPCL and other defendants in what it
described as an old 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.
Other defendants in the suit are the Nigeria Midstream and
Downstream Petroleum Regulatory Authority, NMDPRA, AYM Shafa Limited, A.A. Rano
Limited, T. Time Petroleum Limited, 2015 Petroleum Limited as well as Matrix
Petroleum Services Limited.
The plaintiff is equally praying the court to award N100
billion in damages against the NMDPRA for allegedly continuing to issue import
licenses to NNPCL and the other defendants for the import of petroleum products
such as 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.
“A declaration that it is against the NEPZA Act, CIT Act,
Finance Act, and Dangote Industries Free Zone Regulation 2020, as well as
legislative intent, for the 1st Defendant to impose or threaten to impose on
the plaintiff an additional financial obligation of a 0.5% levy meant for
off-takers of petroleum products directly and an additional 0.5% wholesale levy
in favour of the Midstream Downstream Gas Infrastructure Fund, MDGIF.
“An order of mandatory injunction directing the 1st
Defendant to withdraw immediately all import licenses issued to the 2nd-7th
defendants and other companies other than the plaintiff and other local
refineries for the purpose of importing refined petroleum products into
Nigeria.”
“An order of injunction restraining the 1st Defendant from
imposing and demanding a 0.5% levy meant for off-takers of petroleum products
directly and an additional 0.5% wholesale levy in favour of MDGIF or any other levy
or sum against the plaintiff.”
According to the plaintiff, NMDPRA acted in breach of
Sections 317(8) and (9) of the Petroleum Industry Act by issuing licenses for
the importation of petroleum products to the defendants.
In the processes filed through a team of lawyers led by Mr
Ogwu Onoja, SAN, the plaintiff, such licenses ought to be issued only when
there is a shortfall of petroleum products in the country.
It urged the court to declare that NMDPRA violates its
statutory responsibilities under the Petroleum Industry Act (PIA) for not
encouraging local refineries such as the one owned by the plaintiff.
In an affidavit deposed to by the Group General Manager of
Government and Strategic Relations at Dangote Refinery, Ahmed Hashem, he told
the court that import licenses granted to other companies by NMDPRA for the
importation of AGO and Jet-A1 are crippling the plaintiff’s business which it
committed substantial financial resources in billions of US dollars.
He averred that the plaintiff’s products are largely left
unpatronized due to the actions of NMDPRA.
More so, the deponent told the court that NMDPRA has
threatened to impose and demand a 0.5% levy on the plaintiff on wholesales and
off-takers, as well as another 0.5% levy on wholesales to the Midstream and
Downstream Gas Infrastructure Fund (MDGIF) via a letter dated June 10, 2024,
contrary to statutory provisions that limit the implementation of levies on
transactions within Free Zones.
He alleged a grand conspiracy and concerted effort by International
Oil Companies and interests, in conjunction with the defendants, who are
unhappy that Nigeria has an indigenous refinery ready to solve the lingering
energy crisis and save the economy.
“The intervention of the honourable court has become
necessary to stem the incessant violation of statutory provisions by the 1st
Defendant in favour of other entities such as the 2nd to 7th defendants,” the
plaintiff added.
Meanwhile, there were indications that the matter may not be
heard by the court as a member of the plaintiff’s legal team, Mr George
Ibrahim, SAN, notified the court yesterday that efforts to amicably resolve the
issue were afoot.
He said the defendants had indicated their intention to
explore an out-of-court settlement.
Consequently, Justice Inyang Ekwo adjourned the matter till
January 20, 2025, for a report of settlement.
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