Dangote Refinery Withdraws N100bn Suit Against NNPC, NMDPRA, Others

July 29, 2025

Dangote Petroleum Refinery and Petrochemicals has officially withdrawn its ₦100 billion lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company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

The case, filed at the Federal High Court in Abuja, was discontinued on July 28, 2025, without any official reason provided.

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Five other oil marketers listed as defendants in Suit No. FHC/ABJ/CS/1324/2024 include AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.

In the suit filed in September 2024, Dangote Refinery accused NMDPRA of violating Sections 317(8) and (9) of the Petroleum Industry Act (PIA), arguing that import licenses should only be issued during fuel shortages and that the regulator failed to prioritize local refining capacity.

It sought ₦100 billion in damages and a court declaration to nullify the import licenses.

NMDPRA and the marketers defended the licenses, stating that Dangote’s production couldn’t meet national demand and that competition was essential to prevent monopolistic practices.

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“Take notice that the plaintiff herein discontinues this suit against the defendants forthwith,” the withdrawal notice dated 28 July 2025 filed by Dangote refinery’s lawyer, Ogwu Onoja (SAN), stated.

No settlement details or explanations were disclosed.

The 650,000 barrels per day refinery, which began operations in January 2024 and started producing petrol in September of the same year, has been facing challenges of crude supply shortages and pricing disputes. The lawsuit was seen as an attempt to secure market dominance amid NNPC’s termination of an exclusive supply deal with Dangote in 2024.

The withdrawal may signal a temporary truce, but tensions over import licensing and local refining incentives under the PIA remain unresolved.

The founder of the $20 billion refinery recently called on the Federal Government to ban petroleum products imports as part of the “Nigeria First” policy initiated by the government a few months ago.

The call has drawn reactions from marketers who labelled it as an attempt to monopolize the downstream petroleum market in Nigeria.

However, Dangote maintained that it is a measure to stop the importation of substandard petroleum products in the country, claiming that the NMDPRA does not have a standard laboratory facility to inspect and ascertain the quality of what is imported.

 

 

 

 

victor ezeja
Correspondent at  |  + posts

Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.

Victor Ezeja

Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.

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