In a significant legal development, Dangote Petroleum Refinery and Petrochemicals has formally withdrawn its lawsuit challenging the issuance of fuel import licences by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to the Nigerian National Petroleum Company Limited (NNPCL) and several independent oil marketers.
The notice of discontinuance, filed at the Federal High Court in Abuja and signed by senior counsel Ogwu Onoja (SAN), signals a sudden end to a contentious legal battle that had raised critical questions about competition, regulation, and market dominance in Nigeria’s petroleum sector.
“Take notice that the plaintiff herein discontinues this suit against the defendants forthwith,” the brief statement read, offering no explanation for the decision.
The suit, originally filed in September 2024 and marked FHC/ABJ/CS/1324/2024, had sought to nullify fuel import licences issued to NNPCL and marketers including AYM Shafa Ltd, A. A. Rano Ltd, T. Time Petroleum Ltd, 2015 Petroleum Ltd, and Matrix Petroleum Services Ltd.
Dangote Refinery argued that NMDPRA breached Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by granting licences when local refining capacity—namely, Dangote’s refinery—should have sufficed. The company sought ₦100 billion in damages for the alleged regulatory infraction.
Three of the named marketers—AYM Shafa, A. A. Rano, and Matrix Petroleum—filed a joint counter-affidavit arguing that Dangote’s position was an attempt to monopolise the downstream oil sector. Represented by Ahmed Raji (SAN), the marketers warned that exclusive control over fuel importation by Dangote would destroy competition, increase fuel prices, and create national energy insecurity.
“If Dangote becomes the sole importer or producer, the Nigerian economy could suffer from lack of pricing competition and supply instability,” the affidavit stated.
The NMDPRA, through a sworn affidavit by regulatory officer Idris Musa, maintained that Dangote Refinery’s capacity alone cannot meet national demand, necessitating supplementary imports. The agency denied any conspiracy and emphasized its legal obligation to promote fair competition under the PIA.
Similarly, NNPCL, represented by Kehinde Ogunwumiju (SAN), filed a preliminary objection claiming it was misidentified in the suit and that the plaintiff lacked the locus standi to challenge import permits issued by a regulatory body.
Though the court dismissed procedural objections and allowed Dangote to amend its filings, the plaintiff’s unexpected withdrawal on the eve of substantive hearings has now rendered the case moot. The matter had been scheduled for hearing on September 29, 2025, before Justice Mohammed Umar.
Industry experts suggest the discontinuation could reflect a strategic recalibration by Dangote, possibly in light of ongoing refinery ramp-up challenges, evolving market dynamics, or behind-the-scenes negotiations.
Analysts say the case underscored key challenges facing Nigeria’s energy sector, including balancing local refining capacity with national demand, regulatory clarity, and preventing monopolistic tendencies.
“This withdrawal likely avoids prolonged regulatory friction,” said petroleum analyst Temitope Alade, adding that “it also signals the strength of Nigeria’s legal and regulatory architecture in protecting market diversity.”
While the legal case is now closed, the issues it raised remain topical—especially as Nigeria continues its efforts to reform the downstream petroleum sector, attract private investment, and ensure affordable energy access for its growing population.