Dangote Refinery Withdraws ₦100bn Lawsuit Against NNPC, Marketers Amid Industry Speculation
Dangote Petroleum Refinery and Petrochemicals has abruptly withdrawn its ₦100 billion lawsuit against several key industry players including the Nigerian National Petroleum Company Limited (NNPC Ltd), AYM Shafa Ltd, and A.A. Rano Ltd. The case, which was before the Federal High Court in Abuja under suit number FHC/ABJ/CS/1324/2024, was discontinued on July 28, 2025, through a notice signed by Dangote’s lead counsel, Ogwu James Onoja, SAN. No reason or clarification was offered, leaving the legal and oil communities speculating about possible behind-the-scenes negotiations or settlements.
Filed in September 2024, the lawsuit reflected Dangote Refinery’s concern over regulatory decisions undermining its operations. As the country’s largest private refinery, it began producing fuel in early 2024 and aimed to reduce dependence on imports. However, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) continued issuing fuel import licenses to various marketers, including the defendants. Dangote argued this contravened Sections 317(8) and (9) of the Petroleum Industry Act, which it interpreted as restricting such licenses when domestic capacity could meet demand.
The defendants, including NNPC Ltd and other marketers, responded with counter-affidavits refuting the allegations. They claimed Dangote was attempting to monopolize the sector and that the refinery’s output was still insufficient to meet national demand. Regulatory authorities emphasized that fuel imports were necessary to maintain supply and price stability, arguing they acted fully within their legal mandate. NMDPRA officials denied any targeted moves against Dangote, instead asserting a commitment to maintaining a balanced, competitive marketplace.
The legal tussle featured procedural back-and-forth, including a key issue over the misnaming of NNPC in court documents. While NNPC challenged the suit’s validity on this technical ground, Justice Inyang Ekwo ruled in March 2025 that such a mistake did not invalidate the core claims. The court allowed Dangote to amend its filings and urged all parties to focus on the substantive matters. The next major hearing was set for September 29, 2025, but the case was unexpectedly dropped just two months prior.
The sudden withdrawal raises questions about broader shifts in Nigeria’s downstream oil sector. Some analysts speculate that Dangote may have reached a private agreement or is adjusting its business strategy amid changing regulatory dynamics. The termination of NNPC’s exclusive purchase deal with Dangote Refinery last year already indicated a move toward liberalized fuel markets. While the lawsuit is over, debates about refining capacity, import licensing, and fair competition under the Petroleum Industry Act are likely to continue shaping the sector.
Source: Business day