Dangote Petroleum Refinery has officially withdrawn its ₦100 billion lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company Limited (NNPCL), and five other petroleum companies.
The case, which was filed at the Federal High Court in Abuja, was formally discontinued following a notice of withdrawal submitted by Dangote’s legal representatives.
The lawsuit, filed on September 6, 2024, accused NMDPRA of violating Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing import licenses to certain oil marketers despite Dangote Refinery’s capability to supply locally refined petroleum products. The refinery sought ₦100 billion in damages and a court declaration to nullify the import licenses .
Defendants’ Response
The defendants, including AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited, argued that competitive practices are essential to Nigeria’s economic health and the oil sector’s viability.
They claimed that Dangote Refinery was attempting to monopolize the petroleum industry, controlling supply, distribution, and pricing to the detriment of other players.
NMDPRA’s Position
NMDPRA maintained that it issued oil licenses to NNPC Limited and oil marketers to address petroleum product shortfalls in the country.
The agency emphasized its legal mandate to encourage competition and prevent monopolistic control, adding that Dangote Refinery’s output was insufficient to meet national demand.
Withdrawal Notice
The notice of discontinuance, filed on July 28, 2025, did not provide any official reason for the withdrawal. It remains unclear whether an out-of-court settlement was reached or if negotiations prompted the decision. The notice, signed by Ogwu Onoja (SAN), lead counsel to Dangote Refinery, stated: “Take notice that the plaintiff herein discontinues this suit against the defendants forthwith.”
Industry Implications
The withdrawal of the lawsuit signals a potential shift in the dynamics of Nigeria’s petroleum industry. With Dangote Refinery’s commencement of domestic fuel supply in September 2024, the market has witnessed a significant decline in petroleum imports. Industry observers see the decision to pull back the suit as a strategic move that could help de-escalate regulatory tension and pave the way for policy alignment and collaboration between private refiners and government institutions.
The Dangote Refinery, with a capacity of 650,000 barrels per day, began production of diesel and aviation fuel in January 2024 and commenced petrol processing by September 2024.
The refinery has faced challenges, including crude supply issues and pricing disputes.
*Court Proceedings
The case had encountered procedural challenges, including a preliminary objection raised by NNPC Limited over the misidentification of its name in the suit.
However, on March 18, 2025, Justice Inyang Ekwo dismissed the objection, ruling that the error in name did not render the suit defective.
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