Dangote Refinery Withdraws ₦100 Billion Suit Against NMDPRA, NNPC, Others
The Dangote Petroleum Refinery has formally discontinued its ₦100 billion lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company Limited (NNPC Ltd), and several major fuel marketers.
The lawsuit, originally filed in September 2024, had accused the regulatory body and its co-defendants of issuing unlawful import licenses that threatened the refinery’s ability to operate competitively in Nigeria’s domestic fuel market.
The withdrawal, filed at the Federal High Court in Abuja on July 28, 2025, was confirmed through a notice of discontinuance submitted by Dangote’s lead counsel, Chief Ogwu Onoja (SAN). The document stated that the plaintiff “discontinues this suit against the defendants forthwith.” No further explanation was provided for the sudden reversal.
The original suit (FHC/ABJ/CS/1324/2024) sought ₦100 billion in damages. Dangote Refinery alleged that by allowing the continued importation of refined petroleum products into the country, NMDPRA and NNPC were in violation of sections 317(8) and (9) of the Petroleum Industry Act (PIA), which emphasize the need to prioritize domestic refining capacity before approving imports.
In its filings, the refinery maintained that the issuance of licenses to fuel marketers such as AYM Shafa, A.A. Rano, Matrix Energy, and others created unfair competition, just as the newly commissioned 650,000 barrels-per-day Dangote Refinery was preparing to dominate local supply.
However, the defendants strongly opposed the claims. Through counter-affidavits and legal responses, they argued that the refinery was attempting to monopolize the downstream market. They stated that imports were still necessary to close the supply gap and stabilize the market, especially as Dangote Refinery had not yet reached optimal capacity.
Earlier in March 2025, the court had dismissed a procedural objection raised by NNPC regarding the naming of parties, signaling readiness to proceed with substantive hearings. A major hearing was previously scheduled for September 29, 2025.
The decision to withdraw the lawsuit has sparked wide speculation. While no official reason has been offered, some industry observers believe the move may be the result of behind-the-scenes negotiations with government stakeholders or a strategic decision to avoid extended legal battles that could distract from the refinery’s commercial rollout.
The case had drawn attention for what it revealed about ongoing tensions between Nigeria’s push to become self-sufficient in refining and the challenges of transitioning from an import-dependent fuel market.
The Dangote Refinery, seen as a flagship project under the country’s industrial agenda, has increasingly positioned itself as a key player with the capacity to meet local and regional fuel needs.
By stepping away from the legal confrontation, Dangote appears to be recalibrating its approach within a complex regulatory and commercial environment.
Whether this will lead to a more collaborative relationship with regulators and marketers remains to be seen.
