ECONOMY
Dangote Refinery Withdraws ₦100BN Lawsuit Against NMDPRA, NNPC, and Oil Marketers

The Dangote Petroleum Refinery and Petrochemicals has officially withdrawn its lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company Limited (NNPCL), and five petroleum marketing companies.
Filed at the Federal High Court in Abuja, the case was discontinued by Dangote’s legal team through a formal notice of discontinuance. The defendants included AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.
“No specific reason was provided for the decision to end the proceedings,” the court filing stated, leaving unanswered whether the move was part of an out-of-court resolution or a strategic legal retreat.
In the suit, the Dangote Refinery had sought ₦100 billion in damages from the NMDPRA for allegedly violating Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing petroleum product import licences to various marketers despite the existence of a functional local refinery. The refinery argued that such licences should only be granted when there is a proven shortfall in local supply.
The plaintiff also claimed that the regulator’s actions undermined domestic refining capacity and failed to promote local production in line with the PIA’s objectives.
In response, the oil marketers and NMDPRA filed counter affidavits urging the court to dismiss the claims. The defendants argued that competitive access to import licences was critical for a healthy oil sector and accused the refinery of attempting to create a monopoly.
“The plaintiff seeks to dominate the Nigerian petroleum industry by controlling supply, distribution, and pricing,” the defendants said, maintaining that they met all requirements under Section 317(9) of the PIA to receive import permits.
Idris Musa, a Senior Regulatory Officer at NMDPRA, further stated in an affidavit that Dangote Refinery’s current output was insufficient to meet the nation’s daily consumption needs. He noted that the authority issued licences to bridge shortfalls and ensure fuel availability nationwide. “The Commission is mandated to promote competition and prevent monopolistic control of the market,” Musa said.
The case had earlier seen a preliminary objection raised by NNPCL over the misidentification of its name in the suit. On March 18, 2025, Justice Inyang Ekwo overruled the objection, describing it as a minor technicality.
Despite months of legal wrangling, the matter has now been laid to rest—at least in the courtroom. However, the broader regulatory and commercial tensions it raised about Nigeria’s evolving oil sector remain very much alive.
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