Dangote Refinery Withdraws Suit Against Oil Import Licences

Dangote Petroleum Refinery and Petrochemicals has withdrawn its lawsuit challenging the issuance of petroleum import licences to the Nigerian National Petroleum Company Limited (NNPCL) and several oil marketers by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

In a notice of discontinuance filed at the Federal High Court in Abuja and signed by senior counsel Ogwu Onoja (SAN), the company formally terminated the case without providing any reason for its decision.

"Take notice that the plaintiff herein discontinues this suit against the defendants forthwith,” the filing stated.

The withdrawn case, marked FHC/ABJ/CS/1324/2024, had sought to nullify the import licences issued to NNPCL and six private marketers AYM Shafa Ltd, A.A. Rano Ltd, T. Time Petroleum Ltd, 2015 Petroleum Ltd, and Matrix Petroleum Services Ltd arguing that the move violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA).

The refinery had asked the court to award ₦100 billion in damages against the NMDPRA, claiming the licences undermined the statutory requirement to prioritize local refining capacity and unfairly weakened its market advantage.

Dangote contended that such licences should only be issued in the event of a proven shortfall in domestic production—a condition it said was not met.

Three of the marketers AYM Shafa, A.A. Rano, and Matrix Petroleum strongly opposed the suit. In a joint counter-affidavit, they warned that granting Dangote a monopoly over domestic supply would have catastrophic implications for pricing, energy security, and competition.

"This is a clear attempt to dominate the supply chain,” they said, “which will inevitably lead to rising fuel prices and reduced efficiency in the sector.”

The marketers added that their companies met all regulatory requirements to qualify for import licences under the PIA and that the nation's refining capacity was still too limited to ban fuel imports.

In a separate counter-affidavit, NMDPRA defended its actions, noting that Dangote’s refinery output could not meet Nigeria’s daily consumption needs. It said the issuance of multiple licences was critical to preventing fuel shortages and ensuring market competition.

NNPCL had filed a preliminary objection, arguing that the case should be struck out due to the misidentification of its corporate name and the plaintiff’s lack of legal standing. However, Justice Inyang Ekwo dismissed the objection, ruling that the error was not substantial enough to void the suit.

The court later granted Dangote Refinery's request to amend the originating summons and scheduled the case for hearing on September 29, 2025, before Justice Mohammed Umar.

Now, with the withdrawal of the suit, that hearing is off the docket effectively ending one of the most closely watched legal battles in Nigeria’s downstream petroleum sector.

The decision to discontinue the case has sparked speculation about possible behind-the-scenes negotiations or regulatory compromises. While Dangote Refinery has yet to comment publicly, several industry observers see the move as a strategic retreat following strong legal and public opposition to its monopoly bid.