PRESS STATEMENT
Dangote Industries Limited (DIL) is to withdraw the legal action it filed in September 2024 praying the Federal High Court, Abuja to void import licenses issued to the Nigeria National Petroleum Corporation Limited (NNPCL) and six other companies to import refined petroleum products, which Dangote Refinery is already producing locally without shortfalls.
In the suit, FHC/ABJ/CS/1324/2024 filed by Dangote Petroleum Refinery and Petrochemicals FZE, the DIL sought 100 billion Naira damages because the licences would allow the seven companies import petroleum products such as Automotive Gas Oil (AGO) and Jet Fuel (Aviation turbine fuel) into Nigeria, “despite the production of AGO and Jet-A1 that exceeds the current daily consumption of petroleum products in Nigeria by the Dangote Refinery.”
On Monday, the Abuja Court adjourned the case to January 2025.
“We understand that once the matter comes up in January 2025, we (DIL) would be in a position to formally, withdraw the matter in court,” Dangote Group, said in a press statement adding: “This is an old issue that started in June and culminated in a matter being filed on September 6, 2024.”
It further explained that “… the parties are in discussion since President Bola Tinubu’s directive on Crude oil and Refined products sales in Naira initiative, which was approved by the Federal Executive Council (FEC).
“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 (legal) proceedings,” the statement noted.
The NNPCL had been embroiled in a lengthy controversy with DIL over the sale of refined petroleum products by the Dangote Refinery which began operations this year.
It took a presidential intervention for the NNPCL to start selling crude oil to Dangote and other local refineries in Naira and for the NNPCL and oil marketers to purchase refined products from the Dangote Refinery in the local currency. (1,600 =1$USD).
Amid the controversy, the pump price of Petroleum Motor Spirit (petrol), has been increased from 617 Naira to 995 Naira and over 1,000 Naira per litre from September, depending on the location, aggravating the economic hardship and high cost of living in Africa’s most populous nation.
The rollout of petrol from the Lagos-based Dangote Refinery, the largest single-rail refinery in the World with a 650,000-barrel-per-day capacity, was expected to end Nigeria’s embarrassing status as an oil producer that imports petroleum products.
