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Dangote Refinery Drops ₦100bn Lawsuit Against NNPC, NMDPRA, Others

The Dangote Petroleum Refinery has officially withdrawn its ₦100 billion lawsuit filed against the Nigerian National Petroleum Company Limited (NNPCL), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and five other companies in the oil sector.

The case, initially filed at the Federal High Court in Abuja, centered on allegations that the NMDPRA breached provisions of the Petroleum Industry Act (PIA) by issuing fuel import licenses despite the presence of local refining capacity.

In court documents, Dangote Refinery accused the regulatory authority of undermining local refineries by allowing oil marketers—namely AYM Shafa Ltd, A.A. Rano Ltd, T. Time Petroleum Ltd, 2015 Petroleum Ltd, and Matrix Petroleum Services Ltd—to bring in fuel, which the company argued should only be permitted during national supply shortages.

However, a notice of discontinuance was recently filed, confirming that Dangote has decided to abandon the legal proceedings. No formal explanation was provided for the decision, and it remains unclear whether an out-of-court agreement was reached.

The withdrawal brings an end to months of legal wrangling in which the refinery had urged the court to recognize NMDPRA’s actions as unlawful and award ₦100 billion in damages.

In response to the original suit, the marketers had insisted that the licensing process was legal and competitive, adding that Dangote’s claims were an attempt to create a monopoly in the industry.

NMDPRA defended its actions by stating that Dangote’s refinery is not yet able to meet the country’s fuel demand. It also maintained that all licenses were issued to credible traders to prevent supply disruptions, as allowed under Section 317(9) of the PIA.

The regulator also denied claims of bias or collusion, emphasizing that it is duty-bound to encourage competition and ensure fuel availability nationwide.

The case had previously faced procedural hurdles, including a dispute over the proper legal name of NNPC. That objection was dismissed by the court in March 2025, which allowed the case to proceed.