Dangote Petroleum Refinery and Petrochemicals has formally withdrawn its legal case against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company Limited (NNPC Ltd), and five other oil marketing firms.
The lawsuit, which was filed at the Federal High Court in Abuja, was discontinued by the refinery’s legal counsel, as confirmed in a notice of discontinuance submitted to the court. Although the notice didn’t specify a reason, it stated that Dangote Refinery had chosen to halt proceedings against all seven defendants, including Matrix Petroleum Services Limited, AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, and 2015 Petroleum Limited.
The terms behind the decision remain unclear—whether it was due to an out-of-court agreement or a change in legal strategy.
In the initial filing, Dangote Refinery had asked the court to compel NMDPRA to pay ₦100 billion in damages, alleging the agency violated its mandate by issuing petroleum import licenses to certain marketers despite domestic refining efforts.
The refinery argued that licenses should only be granted when a shortfall in local supply exists, in accordance with Sections 317(8) and (9) of the Petroleum Industry Act (PIA). It also claimed NMDPRA had failed in its responsibility to promote and support local refiners like Dangote Refinery.
Marketers involved in Dangote lawsuit
The marketers involved—NNPC Ltd, Matrix, AYM Shafa, A. A. Rano, T. Time Petroleum, and 2015 Petroleum—disputed the claims in a counter-affidavit. They contended that the issuance of import permits was both lawful and necessary for market competition, warning that Dangote’s claims pointed toward an attempt to establish a monopoly in Nigeria’s oil downstream sector.
They argued that under Section 317(9) of the PIA, they met all the qualifications required to receive import permits. “The plaintiff is trying to monopolise the supply, distribution, and pricing of petroleum products in Nigeria,” the defendants asserted.
The NMDPRA, in its own affidavit filed by Senior Regulatory Officer Idris Musa, said Dangote’s local output did not yet meet national consumption needs. Musa maintained that the agency acted within its powers by granting licenses to marketers with proven international trading experience in order to close existing supply gaps.
He further emphasised that NMDPRA is legally mandated to uphold competition and prevent monopolistic practices. “There is no conspiracy against the plaintiff,” Musa stated.
Earlier in the case, on December 9, 2024, Dangote Refinery sought the court’s permission to amend its documents by correcting the name of the second defendant from “Nigeria National Petroleum Corporation Limited” to “Nigerian National Petroleum Company Limited.”
NNPC Ltd, in response, filed a preliminary objection seeking the dismissal of the suit on grounds including misidentification. The objection was supported by an affidavit from Isiaka Popoola, a litigation officer in the legal firm representing NNPC.
However, on March 18, 2025, Justice Inyang Ekwo rejected the objection, ruling that the naming error did not invalidate the suit. He held that the defendants should have addressed the main issues raised in the suit before resorting to procedural objections.
Despite that ruling, Dangote Refinery has now dropped the case, leaving questions over the outcome and next steps in the ongoing debates about refining capacity, product importation, and regulatory fairness in Nigeria’s oil sector.
