Dangote Refinery Withdraws ₦100bn Lawsuit Challenging Fuel Import Licences

The Dangote Petroleum Refinery and Petrochemicals has formally withdrawn a lawsuit filed at the Federal High Court in Abuja, which sought to nullify fuel import licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to the Nigerian National Petroleum Company Limited (NNPCL) and several oil marketers.

 

In a notice of discontinuance signed by its legal counsel, Ogwu Onoja (SAN), the refinery announced it was dropping the case.

“Take notice that the plaintiff herein discontinues this suit against the defendants forthwith,” the notice read. No reason was provided for the withdrawal.

 

The suit, originally filed on September 6, 2024 (marked FHC/ABJ/CS/1324/2024), had alleged that NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing fuel import licences without proving a shortfall in local supply. The plaintiff argued this move undermined domestic refineries and demanded ₦100 billion in damages.

 

The lawsuit named NMDPRA, NNPCL, AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited as defendants.

 

However, in a counter-affidavit filed on November 5, 2024, by Ahmed Raji (SAN), three of the oil marketers—AYM Shafa, A. A. Rano, and Matrix Petroleum—urged the court to dismiss the suit. They accused Dangote Refinery of seeking a monopoly in the petroleum sector, warning such dominance could worsen fuel prices and pose a serious risk to energy security if the refinery experienced technical issues.

 

They maintained that they were fully qualified to receive import licences under the PIA and that fair competition must be maintained to avoid market abuse.

 

In its own defence, NMDPRA emphasized that Dangote Refinery’s current output could not meet Nigeria’s daily demand for petroleum products. The regulator said import licences were necessary to bridge supply gaps and uphold energy security. It also rejected any claims of conspiracy against the refinery, saying it is required by law to foster competition and prevent monopolies.

 

NNPCL, in a preliminary objection led by senior advocate Kehinde Ogunwumiju, argued that the suit should be struck out over misidentification and that the plaintiff lacked legal standing. The court, however, dismissed this objection, ruling the misnaming was not fatal to the case and allowed an amendment to the suit.

 

Justice Mohammed Umar had earlier fixed September 29 for a full hearing of the matter before Dangote Refinery opted to withdraw the case.

 

The discontinuance brings an unexpected end to a high-stakes legal battle that had raised questions about competition, regulatory fairness, and the future of Nigeria’s petroleum supply strategy.

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