… Wants FG to Close all Tank Farms, Storage Facilities in Nigeria
Dangote Refinery has sued the Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority, demanding that import licences granted to some Nigerian firms should be suspended.
In the case instituted at an Abuja Federal High Court, last month, DRL is demanding N100 billion in damages from NMDPRA, an NNPC subsidiary as well as an order requesting the agency to close down all tank farms and petroleum products storage facilities across the country.
Furthermore, the company wants the court to nullify the import licences of the Nigerian National Petroleum Corporation, NNPCL. AYM Shafa, A.A. Rano Nigeria Limited, Matrix Oil and others to prevent them from petrol importation.
The case instituted by Dangote Refinery and Petrochemicals FZE averred, according to NairaMetrics.com, that the licence would cripple his business, arguing that import licences should only be issued when there is a shortfall in local production.
He also urged the court to declare that NMDPRA violates its statutory responsibilities under the Petroleum Industry Act (PIA) for not encouraging local refineries such as his to produce for the local market.
In an affidavit deposed by Ahmed Hashem, the Group General Manager of Government and Strategic Relations at Dangote Refinery, he submitted that the import licenses granted to other companies by NMDPRA for the importation of AGO and Jet-A1 are crippling the plaintiff’s business, to which it has committed substantial financial resources in billions of US dollars.
He noted that the plaintiff’s products are largely left unpatronized due to the alleged actions of NMDPRA.
He also urged the court to declare that NMDPRA violates its statutory responsibilities under the Petroleum Industry Act (PIA) for not encouraging local refineries such as Dangote Refinery.
In an affidavit deposed by Ahmed Hashem, the Group General Manager of Government and Strategic Relations at Dangote Refinery, he submitted that the import licenses granted to other companies by NMDPRA for the importation of AGO and Jet-A1 are crippling the plaintiff’s business, to which it has committed substantial financial resources in billions of US dollars.
He noted that the plaintiff’s products are largely left unpatronized due to the alleged actions of NMDPRA.
Additionally, Dangote Refinery demanded, “General damages in the sum of N100,000,000,000 against the 1st Defendant (NMDPRA) and an order directing the 1st Defendant to seal off all tank farms, storage facilities, warehouses, and stations used by the defendants for the storage of all refined petroleum products imported into Nigeria.”
Other reliefs partly sought by the plaintiff are as follows:
“A declaration that by the provisions of Section 8(1) of the Nigerian Export Processing Zone Act (NEPZA), Sections 23(h) and 55(1) of the Companies Income Tax Act (CIT Act), Paragraph 6 of the Second Schedule to the CIT Act, Regulation 54(2)(a)(i) of the Dangote Industries Free Zone Regulation 2020, and the Finance Act, the plaintiff, being an entity duly registered as a Free-Zone Enterprise, is exempted from all federal, state, and local government taxes, levies, and other rates.
“A declaration that it is against the NEPZA Act, CIT Act, Finance Act, and Dangote Industries Free Zone Regulation 2020, as well as legislative intent, for the 1st Defendant to impose or threaten to impose on the plaintiff an additional financial obligation of a 0.5% levy, meant for off-takers of petroleum products directly and an additional 0.5% wholesale levy in favour of the Midstream Downstream Gas Infrastructure Fund (MDGIF).
“An order of mandatory injunction directing the 1st Defendant to withdraw immediately all import licenses issued to the 2nd-7th defendants and other companies other than the plaintiff and other local refineries to import refined petroleum products into Nigeria.
“An order of injunction restraining the 1st Defendant from imposing and demanding a 0.5% levy meant for off-takers of petroleum products directly and an additional 0.5% wholesale levy in favour of MDGIF or any other levy or sum against the plaintiff.”
