Dangote Petroleum Refinery and Petrochemicals has formally withdrawn a high-profile lawsuit against Nigeria’s energy regulators and several petroleum marketers, marking a significant shift in a legal dispute that centered on fuel importation rights. Filed in September 2024 at the Federal High Court in Abuja, the case accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and six other defendants of violating licensing rules under the Petroleum Industry Act (PIA). The refinery’s legal team filed a notice of discontinuance on Monday, effectively ending proceedings against all parties.
The suit, initially seeking N100 billion (approximately $63 million) in damages, alleged that NMDPRA unlawfully issued import licenses to marketers—including the Nigerian National Petroleum Company Limited (NNPC Ltd) and firms such as AYM Shafa Limited, A. A. Rano Limited, and Matrix Petroleum Services Limited—permitting them to import petroleum products despite local refining capacity. Dangote Refinery argued these actions contravened Sections 317(8) and (9) of the PIA, which prioritize domestic production to reduce reliance on imports.
Ogwu Onoja, a Senior Advocate of Nigeria (SAN) representing Dangote, signed the July 28 withdrawal notice, which stated simply: “Take notice that the plaintiff herein discontinues this suit against the defendants forthwith.” No official reason was provided for dropping the case, though it coincides with recent declines in Nigeria’s fuel imports. Industry analysts note this trend followed Dangote Refinery’s launch of petroleum product sales in September 2023, a milestone aimed at transforming Nigeria into a net exporter of refined fuels.
The refinery, Africa’s largest, began operations last year with a 650,000-barrel-per-day capacity, significantly altering regional energy dynamics. Its entry into the market has already reduced Nigeria’s dependence on imported petrol, a point underscored by recent import data. While the lawsuit’s withdrawal halts a contentious legal battle, it leaves unresolved questions about regulatory compliance and market competition.
Legal experts suggest the discontinuance could signal a strategic pivot by Dangote, possibly reflecting evolving market conditions or behind-the-scenes negotiations. The NMDPRA and NNPC Ltd have not publicly commented on the case’s closure. The five marketers named in the suit—AYM Shafa, A. A. Rano, T. Time Petroleum, 2015 Petroleum, and Matrix Petroleum—also remained silent following the withdrawal.
The development highlights ongoing tensions in Nigeria’s energy sector as it balances local refining ambitions with legacy import practices. With Dangote Refinery scaling production, observers anticipate further shifts in trade patterns and regulatory scrutiny, particularly as the federal government seeks to enforce provisions of the landmark PIA. The refinery’s next steps—whether in renewed dialogue with regulators or adjusted business strategies—will likely shape Nigeria’s petroleum landscape in the coming months.
