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Dangote Withdraws Legal Action Against NNPC, NMDPRA, Oil Marketers

by Reporter theconscienceng
July 30, 2025
in Business, Trending
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Again, Dangote Refinery Slashes Petrol Price in Lagos

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    IMG 20250226 WA0047Dangote Refinery

Dangote Withdraws Legal Action Against NNPC, NMDPRA, Oil Marketers

THECONSCIENCE NG reports that the Dangote Petroleum Refinery and Petrochemicals has officially withdrawn its N100 billion lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company Limited (NNPC Ltd), and five major oil marketing firms.

This move, which may signal a de-escalation in tensions that had recently flared in Nigeria’s increasingly competitive downstream petroleum sector, is coming amidst a push for the Federal Government to ban the importation of petroleum products into the country.

The legal action, filed under Suit No: FHC/ABJ/CS/1324/2024, was discontinued through a Notice of Discontinuance obtained by The Guardian and dated 28 July 2025. The case was lodged at the Federal High Court, Abuja. The plaintiff, Dangote Refinery, brought the suit against NMDPRA, NNPC Ltd, AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.

In its suit, the refinery had demanded N100 billion in damages, accusing the NMDPRA of continuing to issue import licences for refined petroleum products such as Automotive Gas Oil (diesel) and Jet-A1 (aviation fuel), despite claims that its production capacity had already exceeded Nigeria’s domestic consumption needs.

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Dangote argued that the ongoing issuance of import permits undermined its $20 billion investment in the Lekki-based facility.

However, oil marketers pushed back against the refinery’s position, citing Nigeria’s deregulated downstream market structure.

They stressed that importers and distributors had the right to source products either through international markets or from Dangote’s refinery, without regulatory constraints favouring one supplier over others.

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Industry sources suggest that the legal challenge was also tied to broader lobbying efforts by Dangote Group, which is allegedly pressing the Federal Government to ban the importation of refined petroleum products into the country.

Such a move would force domestic distributors to source products exclusively from the refinery, solidifying its hold on the market.

While neither the NMDPRA nor Dangote Refinery has issued an official statement on the withdrawal, the notice—signed and stamped by legal firm Ahmed Raji & Co.—reads:

“TAKE NOTICE that the Plaintiff herein discontinues this Suit against the Defendants forthwith.”

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In October last year, Dangote, through his Group Chief Branding and Communications Officer, Anthony Chiejina, had confirmed that it sued the Nigeria National Petroleum Company Limited (NNPC) and other companies but noted that the suit has been overtaken by events.

Stakeholders had noted that the withdrawal may point to behind-the-scenes negotiations or regulatory engagement aimed at diffusing tensions. It may also reflect a strategic recalibration by Dangote Refinery as it seeks to expand market share while navigating complex legal and commercial dynamics in a deregulated landscape.

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