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HomeNaija NewsDangote Refinery Withdraws ₦100 Billion Lawsuit Against NMDPRA, NNPCL, Oil Marketers

Dangote Refinery Withdraws ₦100 Billion Lawsuit Against NMDPRA, NNPCL, Oil Marketers

The Dangote Petroleum Refinery and Petrochemicals has officially withdrawn its ₦100 billion lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company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

News360 Info reports that the case, which had been before the Federal High Court in Abuja, was formally discontinued following a notice of withdrawal filed by Dangote’s legal representatives.

According to court documents, the decision affects all seven defendants, namely AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.

The notice of discontinuance did not state the reasons behind the refinery’s decision to end proceedings. It remains unclear whether an out-of-court settlement was reached or if negotiations prompted the withdrawal.

Dangote Refinery had initially sought ₦100 billion in damages, accusing NMDPRA of violating Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing import licences to certain oil marketers despite the refinery’s capability to supply locally refined petroleum products.

The refinery alleged that the regulatory authority failed to promote and support domestic refining, a statutory responsibility under the PIA, thereby encouraging fuel importation.

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In a counter-affidavit, the marketers argued that they were fully qualified to receive import licences under the PIA, insisting that competitive practices were essential for Nigeria’s economy and the oil sector’s sustainability.

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The defendants accused Dangote Refinery of attempting to monopolise the petroleum industry, controlling supply, distribution, and pricing to the detriment of other players.

The NMDPRA, through a sworn affidavit by Senior Regulatory Officer Idris Musa, maintained that licences were issued only to companies with a proven track record of international products trading to fill existing shortfalls in the country’s daily petroleum consumption.

The agency emphasised its legal mandate to encourage competition and prevent monopolistic control, adding that Dangote Refinery’s output was insufficient to meet national demand.

During earlier proceedings, Dangote Refinery had sought to amend its filings to correct the second defendant’s name from “Nigeria National Petroleum Corporation Limited” to “Nigerian National Petroleum Company Limited.”

NNPC Limited objected, describing the suit as incompetent due to misidentification. However, on March 18, 2025, Justice Inyang Ekwo dismissed the objection, ruling that the error did not invalidate the substantive claims.

 

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