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Dangote Refinery sues NMDPRA, seeks N100bn damages over fuel imports

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Dangote Petroleum Refinery has filed a lawsuit against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and major oil importers, demanding N100bn in damages. The refinery claims the NMDPRA violated the Petroleum Industry Act by continuing to issue import licenses for products like diesel and aviation fuel, despite Dangote’s refinery producing enough to meet domestic demand.

The legal action, filed at the Federal High Court in Abuja, also targets prominent oil companies such as the Nigerian National Petroleum Corporation Limited (NNPCL) and Matrix Petroleum. Dangote argues that the continued importation of refined products undermines its operations, flooding the market and leaving its locally refined fuel unsold.

Oil marketers, however, are pushing back, emphasizing that the market is deregulated, allowing them the freedom to import or buy from the Dangote refinery. Industry sources suggest the case may face challenges, as no law restricts the importation of fuel, regardless of local refining capacity.

The refinery has indicated that the lawsuit could be withdrawn soon, as discussions are ongoing following President Tinubu’s directive for crude oil and refined product sales to be conducted in naira. A court hearing on the matter is set for January 2025.