Dangote Refinery withdraws lawsuit against fuel importers

Dangote Petroleum Refinery and Petrochemicals has officially withdrawn its lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company Limited (NNPC Ltd), and five other petroleum companies.

The case, filed at the Federal High Court in Abuja with suit number FHC/ABJ/CS/1324/2024, was formally discontinued on Monday by the plaintiff’s legal team.

A notice of discontinuance, dated July 28 and signed by Dangote Refinery’s lawyer, Ogwu Onoja, a Senior Advocate of Nigeria (SAN), was filed before the court. It stated, “Take notice that the plaintiff herein discontinues this suit against the defendants forthwith.”

The notice did not provide an official reason for the decision to discontinue the case, and details regarding the reliefs sought or whether an out-of-court settlement was reached remain unclear.

Dangote Refinery had sought N100 billion in damages from the NMDPRA, alleging that the agency violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing import licenses to petroleum marketers, including NNPC Ltd, Matrix Petroleum Services Limited, AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, and 2015 Petroleum Limited.

The refinery argued that such licenses should only be issued in cases of petroleum product shortfalls and that the NMDPRA was failing in its statutory responsibility to encourage local refineries like Dangote.

In a counter-affidavit filed on November 5, 2024, the marketers, represented by Ahmed Raji (SAN), requested the court to dismiss Dangote Refinery’s claims, asserting that competitive practices are crucial for Nigeria’s economic health and the oil sector’s viability.

They maintained their qualification to receive import licenses under Section 317(9) of the PIA and suggested that the plaintiff was attempting to monopolize the Nigerian petroleum industry.

The NMDPRA, through Idris Musa, a Senior Regulatory Officer, further clarified in its counter-affidavit that it issued oil licenses to NNPC Limited and other marketers to address petroleum product shortfalls in the country, as Dangote Refinery’s production does not meet the national daily consumption requirement.

Musa added that the agency is mandated to promote competition and prevent monopolies, denying allegations of conspiracy against the plaintiff.

The legal proceedings had seen previous developments, including a motion by the plaintiff on December 9, 2024, to amend its originating process to correct the name of the second defendant to “Nigerian National Petroleum Company Limited.”

NNPC Limited had raised a preliminary objection, arguing the suit was incompetent due to misidentification, but this was dismissed by then-Judge Inyang Ekwo on March 18, 2025.

The judge ruled that the error did not render the suit defective and that defendants should have responded to substantive claims before raising procedural objections. On March 19, the judge granted the amendment motion and directed parties to proceed on the merits.

The Federal High Court in Abuja had previously set September 29 for the hearing of the suit, following a request for adjournment by Dangote Refinery’s counsel, George Ibrahim (SAN), to allow parties to regularize their processes.

This development follows NNPC’s decision last year to end its exclusive purchase agreement with Dangote Refinery, which opened up the market for other marketers to directly purchase petrol from the refinery.

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