Dangote Refinery Withdraws ₦100bn Lawsuit Against NMDPRA, NNPC, Oil Marketers

Dangote Petroleum Refinery and Petrochemicals has withdrawn its ₦100 billion lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company Limited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 discontinued on Monday, July 29, following a notice of discontinuance submitted by the plaintiff’s legal team, led by Ogwu Onoja, SAN.

“Take notice that the plaintiff herein discontinues this suit against the defendants forthwith,” the court filing read.

Although no official reason was provided for the withdrawal, the move effectively ended ongoing legal proceedings against the seven defendants, including AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.

In the suit filed on September 6, 2024, Dangote Refinery accused the NMDPRA of violating Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing import licenses to selected marketers without first confirming a domestic product shortfall.

The Refinery also alleged that NMDPRA failed in its statutory duty to support local refining, thereby undermining national energy security.

Dangote Refinery sought ₦100 billion in damages and an order declaring the issuance of import licenses unlawful in the suit.

The marketers, including NNPC Ltd and the five oil companies, countered the claim in a joint affidavit filed on November 5, 2024, through their legal counsel, Ahmed Raji (SAN).

The marketers argued that the licensing process complied with the PIA and was essential to maintaining competitive supply and pricing in the Nigerian fuel market.

They further claimed that Dangote Refinery was attempting to monopolise the petroleum sector, despite its current production not meeting the country’s daily consumption demand.

NMDPRA, in its counter-affidavit sworn by Idris Musa, a Senior Regulatory Officer, defended the issuance of import licenses, citing ongoing supply gaps and the need to ensure consistent availability of petroleum products across the country.

The suit also encountered procedural challenges. In December 2024, Dangote Refinery filed a motion to amend the name of the second defendant from “Nigeria National Petroleum Corporation Limited” to “Nigerian National Petroleum Company Limited.”

NNPC Ltd objected, arguing that the misidentification rendered the suit incompetent.

However, on March 18, 2025, Justice Inyang Ekwo overruled the objection, holding that the name error did not affect the substantive merit of the case. He granted the amendment request and instructed parties to proceed to the main hearing.

Justice Mohammed Umar fixed September 29, 2025, for the substantive hearing after the plaintiff’s counsel, George Ibrahim (SAN), requested time to regularise filings.

The 650,000-barrels-per-day Dangote Refinery, which began production of diesel and aviation fuel in January 2024 and commenced petrol processing by September, was seen as a game-changer for Nigeria’s downstream sector.

However, the company has faced hurdles, ranging from crude supply issues and pricing conflicts to concerns over market dominance.