Dangote Refinery and Petrochemicals has disclosed that it is in discussions to settle out of court with the Nigerian National Petroleum Company Limited, NNPCL, and six other companies over petrol import licenses granted by the Nigeria Midstream and Downstream Petroleum Regulatory Authority, NMDPRA.
The case, initially filed by Dangote Refinery in June and brought to court in September, sought to challenge the issuance of licenses that the refinery argued undermined local production capacity.
The legal dispute stems from Dangote Refinery’s position that it had the capacity to meet the demand for refined petroleum products, such as Automotive Gas Oil and Jet Fuel, making the licenses granted to other companies unnecessary. Dangote initially requested N100 billion in damages from NNPCL and an injunction to halt further import licenses.
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Anthony Chiejine, Group Chief Branding and Communications Officer for Dangote, explained that all parties were engaged in discussions to resolve the matter, especially in light of President Bola Tinubu’s initiative for crude oil and refined product sales in Naira. Dangote highlighted that significant progress had been made, and no court orders had been issued against any party. The case is expected to be formally withdrawn when it comes up in court in January 2025.
The suit also involved other major petroleum importers, including AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited, with the NMDPRA and NNPCL as key defendants.
As discussions for an amicable resolution continue, Dangote remains firm in its position regarding import licenses and its aim to protect local refinery operations from international competition. Justice Inyang Ekwo has adjourned the matter to January 20, 2025, for an update on the settlement.
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