Dangote Refinery Drops Lawsuit Against Nigerian Fuel Import Licenses

July 30, 2025

3 minutes read

Dangote-Refinery-

In a surprising move, Dangote Petroleum Refinery and Petrochemicals has withdrawn its ₦100 billion ($66 million) lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company Limited (NNPC), and several oil marketers.

The case, filed in September 2024 at the Federal High Court in Abuja, aimed to cancel fuel import licenses issued to NNPC and other companies, including AYM Shafa Ltd, A.A. Rano Ltd, T. Time Petroleum Ltd, 2015 Petroleum Ltd, and Matrix Petroleum Services Ltd.

Challenging Import Licenses

Dangote argued that NMDPRA violated the Petroleum Industry Act (PIA) by issuing licenses for importing gasoline, diesel, and aviation fuel.

The refinery claimed its 650,000-barrel-per-day facility, which began producing petrol in September 2024, could meet Nigeria’s fuel needs, making imports unnecessary.

The company sought a court order to nullify the licenses and demanded ₦100 billion in damages for losses caused by continued imports.

Court’s Earlier Ruling

In March 2025, Justice Inyang Ekwo rejected objections from NNPC and three oil marketers, who argued the lawsuit was invalid due to a naming error.

The judge ruled that the misidentification of NNPC did not undermine the case, allowing it to move forward.

Despite this victory, Dangote chose to discontinue the suit on July 28, 2025, through a notice filed by its lawyer, Ogwu Onoja, stating, “The plaintiff herein discontinues this suit against the defendants forthwith.”

No Reason Given for Withdrawal

Dangote provided no official explanation for dropping the case. Industry observers speculate that behind-the-scenes negotiations or government interventions, such as President Bola Tinubu’s directive to sell crude oil in naira, may have addressed some of the refinery’s concerns.

The withdrawal could signal a shift toward cooperation with regulators and marketers to stabilize Nigeria’s fuel market.

What Happens Next?

The case is still set for a hearing on September 29, 2025, where defendants may request legal costs or agree to let the court formally dismiss the suit.

The decision comes as Nigeria’s petroleum imports have declined since Dangote began supplying fuel locally, potentially easing tensions in the downstream sector.

However, challenges like crude supply issues and pricing disputes continue to affect the refinery’s operations.

Broader Implications

This development highlights ongoing friction in Nigeria’s petroleum industry as the country transitions from reliance on imported fuel to local refining.

With Dangote Refinery positioning itself as a key player in ending Nigeria’s fuel import dependency, the lawsuit’s withdrawal may pave the way for policy changes or collaboration to support local production while maintaining a competitive market.

Read Also: ICC Convicts CAR’s Patrice-Edouard Ngaïssona

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