In a surprise legal turnaround, Dangote Petroleum Refinery and Petrochemicals has formally withdrawn its high-profile lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company Limited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 leading petroleum marketers.
The ₦100 billion suit—filed before the Federal High Court in Abuja—challenged the NMDPRA’s issuance of petroleum import licenses, which Dangote argued undermined its investment and violated key provisions of the Petroleum Industry Act (PIA).
According to a notice of discontinuance submitted by Dangote’s legal team, the company opted to terminate the proceedings against all seven defendants, which include Matrix Energy, AYM Shafa Ltd, A.A. Rano Ltd, T. Time Petroleum, and 2015 Petroleum Ltd.
No official reason was given for the abrupt withdrawal, and it remains unclear whether a settlement was reached outside the courtroom.
Dangote Refinery, which began test operations earlier this year and is seen as a potential game-changer for Nigeria’s fuel independence, had sought the court’s intervention to halt further issuance of import licenses.
The company argued that under Sections 317(8) and (9) of the PIA, import permits should only be granted when local supply is insufficient—asserting that its operations should be prioritized in national energy planning.
It also accused the NMDPRA of failing to fulfill its statutory duty to encourage and protect domestic refining capacity. The refinery demanded ₦100 billion in damages, citing loss of market advantage and unfair regulatory practices.
However, the defendants—including NNPC and several downstream marketers—countered that Dangote’s demands amounted to an attempt to stifle competition and monopolize the petroleum sector.
In a joint affidavit, they asserted that the PIA permits license issuance to qualified marketers to address supply shortfalls, especially given Dangote’s limited production capacity during its ramp-up phase.
The NMDPRA, through a sworn affidavit by a senior regulatory officer, Idris Musa, maintained that licenses were granted in the public interest to prevent shortages, arguing that promoting a competitive fuel market is essential for consumer protection and national energy stability.
The case also faced procedural complications. In December 2024, Dangote sought to amend the suit to correct the misnaming of the second defendant—from “Nigeria National Petroleum Corporation Limited” to the legally recognized “Nigerian National Petroleum Company Limited.” NNPC objected, urging the court to dismiss the suit for incompetence.
Justice Inyang Ekwo overruled the objection in March 2025, stating that the misidentification was not sufficient grounds to strike out the case and that the defendants should address the substantive claims first.
The withdrawal of the lawsuit removes a significant legal hurdle in Nigeria’s evolving downstream sector.
However, it leaves several questions unanswered—chief among them whether the regulatory environment will be recalibrated to accommodate Nigeria’s largest refinery, or whether Dangote is reassessing its legal and business strategy in light of current market realities.
