Sh*ck Move! Dangote Refinery Drops ₦100 Billion Suit Against NNPCL, Oil Marketers

The Dangote Petroleum Refinery and Petrochemicals has formally withdrawn its ₦100 billion lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company Limited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 oil companies.

According to Naija News, the legal action, which was pending before the Federal High Court in Abuja, was discontinued after Dangote’s legal team submitted a notice of withdrawal.

Court documents show that the withdrawal applies to all seven defendants, which include AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.

The notice of discontinuance did not reveal the reason behind the refinery’s decision to drop the suit. It is still unclear whether an out-of-court settlement was reached or if ongoing negotiations influenced the move.

Initially, Dangote Refinery was seeking ₦100 billion in damages, alleging that the NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by granting import licences to certain oil marketers, despite the refinery’s capacity to supply domestically refined products.

The refinery claimed that by issuing those licences, the regulatory agency failed in its obligation under the PIA to support and prioritize local refining, thereby promoting fuel importation over domestic production.

In response, the marketers insisted they were legally eligible to obtain import permits under the PIA and stressed that competition was vital for both the national economy and the oil sector’s development.

They accused Dangote Refinery of attempting to monopolize the petroleum sector by controlling supply, distribution, and pricing — actions they argued would harm other players in the industry.

The NMDPRA, in a sworn affidavit submitted by Senior Regulatory Officer Idris Musa, defended its decision, stating that import licences were only granted to firms with proven records in international petroleum trading, aimed at bridging supply gaps in Nigeria’s daily fuel demand.

The agency emphasized its legal duty to foster competition and prevent monopolistic practices, noting that Dangote’s current output was not sufficient to meet national needs.

Earlier in the case, Dangote Refinery had sought to amend its filings to correct the name of the second defendant from “Nigeria National Petroleum Corporation Limited” to “Nigerian National Petroleum Company Limited.”

Though NNPC Limited challenged the suit’s validity over the misnaming, Justice Inyang Ekwo dismissed the objection on March 18, 2025, ruling that the error did not undermine the substance of the claims.