Dangote Refinery ends suit against issuance of petrol import licences amid new import tariff

The Federal High Court in Abuja on Wednesday dismissed the N100 billion suit filed by Dangote Petroleum Refinery to challenge the issuance of licences for importation of petroleum products into the country.

Dangote Refinery filed the suit in September last year against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company Limited (NNPCL), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and others.

Other defendants are AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited and Matrix Petroleum Services Limited.

In the suit, the refinery sought an order voiding the import licences issued to the NNPC and the private companies.

But the judge, Mohammed Umar, dismissed the suit after the refinery’s lawyer applied for its withdrawal on Wednesday.

The plaintiff, through its lawyer, C. O. Adegbe informed the court that it filed the notice for the discontinuation of the suit on 28 July.

She told the court that the plaintiff had agreed with the defendants that the matter should be struck out.

Although the refinery had filed the notice to discontinue the suit in July, Wednesday’s where the company’s firm moved to act on it, came about two weeks after President Bola Tinubu approved a 15 per cent import duty on petrol and diesel.

The policy is a controversial move, which the government said was aimed at supporting local refining and boosting energy security, but which critics say could lead to an increase in fuel price.

Many perceive the policy as an anti-competition measure to confer advantage on the refinery’s business.

The president’s approval was contained in a letter with reference no: PRES8197/HAGF/100/71/ FIRS/40/88-2/NMDPRA/2, dated 21 October.

The letter was addressed to the Attorney General of the Federation and Minister of Justice, Federal Inland Revenue Service (FIRS) and the NMDPRA.

Essentially, the tariff would ensure that imported petrol is not cheaper than that of the Dangote refinery, which produces virtually all of Nigeria’s locally produced petrol.

The implementation of the tariff will begin in about a month, following the request by the chairman of the revenue agency, FIRS, Zacch Adedeji, whose memo triggered the presidential approval.