By Camillus Eboh
ABUJA (Reuters) – A Nigerian judge on Tuesday dismissed state oil company NNPC Ltd’s objection to its inclusion in a lawsuit brought by Dangote Oil Refinery, which is seeking to halt imports of gasoline into the West African nation.
The 650,000-barrel-per-day refinery built by billionaire Aliko Dangote in Lagos has been touted as having the potential to secure energy independence for Nigeria, which, though a major oil producer, has long been forced to import refined products.
The refinery’s lawsuit argues that sector regulator Nigerian Midstream and Downstream Petroleum Regulatory Agency (NMDPRA) is violating the law by continuing to issue gasoline import permits to NNPC and other fuel traders.
It says in its suit, filed at Nigeria’s Federal High Court, that the law allows only imports in order to address production shortfalls. It is seeking 100 billion naira ($65 million) in damages from NMDPRA, NNPC and five smaller fuel marketers.
The Dangote refinery, which began processing crude into diesel, naphtha and jet fuel in January last year and gasoline in September, says its output is sufficient to meet domestic demand.
NNPC had objected to the suit that domestic consumption still outstrips the refinery’s production and gasoline imports remain necessary.
It also said Dangote’s filing cited a non-existent company, Nigeria National Petroleum Corporation.
The state oil firm officially changed its name to Nigeria National Petroleum Company Limited in 2022 when it became a limited liability company.
Judge Inyang Ekwo, however, dismissed those objections, adjourning the case until May 6 when he is expected to weigh NMDPRA and NNPC’s request that the suit be dismissed due to a lack of merit and their counter-argument that the refinery is seeking to create a monopoly.
NNPC, NMDPRA and Dangote Oil Refinery declined to comment on the case.
Nigeria has one of Africa’s largest gasoline markets and last year spent 15.42 trillion naira ($10 billion) on imports, according to the statistics bureau.
The lawsuit is the latest row between Dangote, one of Africa’s richest individuals, and Nigerian regulatory authorities.
The Dangote refinery has previously accused NMDPRA of allowing imports of substandard fuels and criticised the upstream regulator for not enforcing laws that mandate oil producers to prioritise crude to domestic refineries.
Both regulators have denied the accusations.
($1 = 1,530.0000 naira)
(Reporting by Camillus Eboh, writing by Isaac Anyaogu, Editing by MacDonald Dzirutwe and Joe Bavier)
