KEY POINTS
- Dangote Refinery has formally withdrawn its lawsuit against NMDPRA, NNPC Ltd, and five oil marketers, without stating a reason.
- The suit, which sought N100 billion in damages, alleged illegal import license issuance that undermined local refining.
- NMDPRA and defendants countered that Dangote aimed to monopolise the market, while Dangote claimed policy violations by regulators.
Dangote Petroleum Refinery and Petrochemicals has withdrawn its high-profile lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company Limited (NNPC Ltd), and five petroleum marketing firms.
The case, registered at the Federal High Court in Abuja with suit number FHC/ABJ/CS/1324/2024, was discontinued on Monday, 28 July 2025, by the plaintiff’s legal counsel, Ogwu Onoja, a Senior Advocate of Nigeria (SAN).
The notice of discontinuance, which was filed at the court, included AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited as the additional defendants.
The statement submitted to the court simply read: “Take notice that the plaintiff herein discontinues this suit against the defendants forthwith.”
Decision to end N100 billion legal challenge raises questions about possible behind-the-scenes negotiations
No formal reason was provided in the document explaining why the Dangote Refinery decided to halt the proceedings.
At the time of reporting, it remains unclear whether a settlement was reached or if the case was dropped due to strategic business considerations.
Observers say the decision may be linked to broader efforts to avoid prolonged legal conflict that could impact fuel supply logistics and public perception of the $19 billion facility.
The refinery had, in the original filing dated 6 September 2024, accused the NMDPRA of violating Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing import licenses to companies despite the presence of local refining capacity.
The Dangote Group had sought N100 billion in damages and urged the court to compel the regulatory authority to support domestic refining, arguing that import licenses should only be issued in the event of a national shortfall.
The oil marketers and NNPC, through their legal representatives including Ahmed Raji (SAN), countered the claims, asserting that all entities named were qualified to import fuel under existing regulations.
They argued that “the plaintiff is attempting to monopolise the petroleum industry in Nigeria, contrary to the market liberalisation efforts supported by the Petroleum Industry Act.”
NMDPRA maintained that it issued licenses to bridge supply gaps due to Dangote Refinery’s limited production at the time. “The refinery is yet to meet the daily national consumption demand, necessitating product imports,” said Idris Musa, a senior regulatory officer at NMDPRA, in a sworn affidavit.
He added that the agency is duty-bound to promote competition and prevent market monopolies.
The legal standoff had earlier faced procedural hurdles. On 9 December 2024, Dangote sought permission to amend its filing to correct the misnaming of NNPC.
Though NNPC objected, Justice Inyang Ekwo overruled the objection on 18 March 2025, describing the error as non-fatal to the suit. He stated that “the defendants ought to have responded to the core legal questions rather than raise preliminary technicalities.” Subsequently, the amendment was granted on 19 March 2025, with parties expected to proceed on the case’s merits.
