Dangote Petroleum Refinery and Petrochemicals has withdrawn its lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company (NNPC) Limited, and five other petroleum companies.
The case, filed at the Federal High Court Abuja in December 2024, was formally withdrawn by the plaintiff’s legal team.
According to a notice of discontinuance filed before the court, Dangote Refinery resolved to end the proceedings against all seven defendants, which include the regulators as well as AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.
Business Post reports that there was no reason given for the halt in the case and can’t verify as of press time if there was any agreements reached by the parties.
In the suit, Dangote Refinery had requested the court to award N100 billion in damages against the NMDPRA for issuing import licenses to some marketers, including NNPC Ltd, Matrix Petroleum Services Limited, AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, and 2015 Petroleum Limited, and allowing the importation of petroleum products.
The plaintiff asked the court to declare that NMDPRA is 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, the marketers requested the court to dismiss Dangote Refinery’s claims, insisting 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. 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.
Musa said the agency is mandated to promote competition and prevent monopolies in the sector, denying allegations of conspiracy against the plaintiff.