Dangote Petroleum Refinery has abruptly withdrawn its high-profile lawsuit against Nigeria’s state-owned oil regulator, national energy company, and several independent petroleum marketers, ending a contentious legal battle over import licensing and market competition. The refinery, owned by Africa’s wealthiest businessman Aliko Dangote, had sought ₦100 billion (approximately $63 million) in damages from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for allegedly violating statutory obligations under the Petroleum Industry Act (PIA).
The suit, initially filed at the Federal High Court in Abuja, accused the NMDPRA of improperly granting import licenses to competitors—including Nigerian National Petroleum Company Limited (NNPC Ltd) and five other firms—without evidence of a national fuel shortage, as required by Sections 317(8) and (9) of the PIA. Dangote Refinery argued that such licenses undermine efforts to boost domestic refining and create an uneven playing field. However, court filings revealed no explanation for the sudden withdrawal, leaving unanswered questions about potential settlements or revised business strategies.
Defendants, including NNPC Ltd and marketers like AYM Shafa Limited and Matrix Petroleum Services, had countered that the refinery’s claims threatened free-market principles. In legal responses, they asserted their eligibility for import permits under the PIA, emphasizing NMDPRA’s mandate to prevent monopolies and ensure fuel availability. Idris Musa, a senior NMDPRA official, defended the licenses in a sworn affidavit, stating that Dangote’s current output falls short of national demand, necessitating imports to bridge gaps.
The case also saw procedural skirmishes. In December 2024, Dangote’s legal team sought to correct a misnomer in NNPC Ltd’s corporate name, prompting the oil giant to challenge the suit’s validity. Judge Inyang Ekwo dismissed NNPC’s objections in March 2025, ruling that the error was inconsequential and urging defendants to address substantive claims. Yet, weeks later, the refinery withdrew its case entirely.
The dispute underscores Nigeria’s struggle to balance local refinery growth with fuel import dependencies. While Dangote’s $19 billion facility—set to become Africa’s largest refinery—aims to reduce imports, delays in operational scale have kept the country reliant on foreign shipments. Analysts suggest the refinery’s retreat may signal a strategic pivot or behind-the-scenes negotiations, though neither party has confirmed this. As regulatory and corporate tensions persist, the case highlights the complexities of reforming a sector critical to Nigeria’s economy.
