Dangote Petroleum Refinery and Petrochemicals has withdrawn its lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company Limited (NNPC Ltd),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.
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According to a notice of discontinuance filed before the court, Dangote Refinery resolved to end the proceedings against all seven defendants, including AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.
The document, dated 28 July, was signed by its lawyer, Ogwu Onoja, a Senior Advocate of Nigeria (SAN).
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“Take notice that the plaintiff herein discontinues this suit against the defendants forthwith,” the court notice read.
In the notice, no official reason was given in the filing for the decision to discontinue the case. Details of the decision, including the reliefs sought and whether an out-of-court settlement was reached, remain unclear as of press time.
The case
Dangote Refinery, in suit number FHC/ABJ/CS/1324/2024, had requested the court to award N100 billion in damages against the NMDPRA for issuing import licenses to some marketers and allowing the importation of petroleum products.
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The marketers are NNPC Ltd, Matrix Petroleum Services Limited, AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, and 2015 Petroleum Limited.
In the suit dated 6 September 2024, the plaintiff’s lawyer, Ogwu Onoja, asked the court to declare that NMDPRA is allegedly in violation of Sections 317(8) and (9) of the Petroleum Industry Act by issuing licenses for the importation of petroleum products.
The Dangote Refinery said such licenses should only be issued when a petroleum product shortfall exists. The refinery also urged the court to declare that NMDPRA violates its statutory responsibilities under the Petroleum Industry Act (PIA) for not encouraging local refineries such as Dangote Refinery.
But in a counter affidavit marked FHC/ABJ/CS/1324/2024 dated 5 November 2024, and filed by Ahmed Raji (SAN), the marketers requested that the court dismiss Dangote Refinery’s claims, insisting that competitive practices are essential to Nigeria’s economic health and the oil sector’s viability.
They argued that they are fully qualified to receive an import licence from NMDPRA, under Section 317(9) of the PIA. The three defendants claim the plaintiff allegedly seeks to monopolise the petroleum industry in Nigeria, where it alone would control supply, distribution, and pricing.
NMDPRA further clarified that it issued oil licences to NNPC Limited and oil marketers to address petroleum product shortfalls in the country.
In its counter-affidavit, sworn to by Idris Musa, a Senior Regulatory Officer, NMDPRA, argued that Dangote Refinery was not entitled to the prayers sought. Mr Musa said the refinery’s production does not meet the national daily consumption requirement.
He added that, in line with Section 317(9) of the Petroleum Industry Act, NMDPRA issued import licences to companies with a track record of international products trading to bridge the supply gap.
Mr Musa said the agency is mandated to promote competition and prevent monopolies in the sector, denying allegations of conspiracy against the plaintiff.
On 9 December 2024, the plaintiff sought a motion to amend its originating process to correct the name of the second defendant from “Nigeria National Petroleum Corporation Limited” to “Nigerian National Petroleum Company Limited.”
In response, the second defendant, NNPC Limited, raised a preliminary objection, arguing that the suit was incompetent and should be struck out for misidentification, among other grounds. The objection was supported by an affidavit deposed to by Isiaka Popoola, a litigation clerk in the law firm representing the company.
On 18 March 2025, the then-judge, Inyang Ekwo, dismissed the objection, ruling that the error in name did not render the suit defective. The court also held that the defendants should have responded to the substantive claims before raising procedural objections.
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On 19 March, the judge granted the plaintiff’s motion to amend its originating summons and directed parties to proceed on the merits of the case.
In July, the Federal High Court in Abuja had fixed 29 September for the hearing of a suit filed.
Judge Mohammed Umar fixed the date after counsel for Dangote Refinery, George Ibrahim, a Senior Advocate of Nigeria (SAN), sought an adjournment to allow parties to regularise their processes.
Dangote Refinery
The 650,000 barrels per day Dangote Petroleum Refinery commenced diesel and aviation fuel production in January 2024.
In September 2024, the refinery announced it had begun the processing of petrol, with the aim of ending Nigeria’s reliance on imported refined petroleum products and boosting the nation’s energy security.
However, the refinery faced controversy related to crude oil supply shortages, pricing disputes, and concerns about its impact on domestic fuel prices and the overall economy.
Last year, NNPC ended its exclusive purchase agreement with Dangote Refinery, opening up the market for other marketers to buy petrol directly from the refinery.
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