Refinery Giant Pulls Out of Import Licence Suit

Dangote Petroleum Refinery and Petrochemicals has on Tuesday, withdrawn a lawsuit it filed at the Federal High Court in Abuja seeking to invalidate petroleum import licences granted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to the Nigerian National Petroleum Company Limited (NNPCL) and several independent oil marketers.

In a notice of discontinuance signed by its counsel, Ogwu Onoja (SAN), the refinery formally requested the court to end the legal proceedings.

The document simply stated, “Take notice that the plaintiff herein discontinues this suit against the defendants forthwith,” without offering any reasons for the withdrawal.

This legal action, originally filed under suit number FHC/ABJ/CS/1324/2024, stemmed from Dangote Refinery’s objection to the issuance of import permits by NMDPRA.

The company argued that such licences were in breach of Sections 317(8) and (9) of the Petroleum Industry Act (PIA).

It claimed the act allow imports only when there is a proven shortfall in local supply.

It accused the regulatory authority of failing in its obligation to support domestic refining efforts.

A N100 billion compensation for damages resulting from what it described as an unfair regulatory decision, was sought.

The suit named the NMDPRA, NNPCL, AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited as defendants.

In response, three of the oil marketers – AYM Shafa, A.A. Rano, and Matrix Petroleum – filed a joint counter-affidavit, urging the court to dismiss the case.

Represented by senior advocate Ahmed Raji (SAN), the marketers argued that Dangote’s legal challenge was an attempt to monopolize the country’s fuel market.

They warned that granting exclusive control to a single refinery would eliminate competitive pricing, worsen the economic climate, and potentially endanger national energy security.

According to the marketers, they fully met the legal requirements under Section 317(9) of the PIA to receive import licences.

They emphasized that relying solely on Dangote Refinery would be dangerous.

This is particularly if the facility encountered operational issues, which could lead to severe shortages in fuel supply across the country.

The NMDPRA also filed a counter-affidavit, stressing that the refinery’s current output could not meet the country’s daily fuel consumption needs.

In a deposition made by Senior Regulatory Officer Idris Musa, the Authority maintained that issuing import licences was necessary to bridge the supply gap and ensure continuous availability of petroleum products.

Musa rejected Dangote’s claims, asserting that the regulatory agency was acting within its mandate to prevent monopolies, promote competition, and ensure a stable energy supply.

Musa further argued that denying import permits to other qualified companies would hurt the oil and gas sector and violate Nigeria’s broader energy security interests.

He also dismissed the refinery’s allegations of a conspiracy, noting that no evidence had been presented to substantiate such claims.

Additionally, NMDPRA pointed out that Dangote’s refined products are not limited to the Nigerian market and could be exported.

It therefore undermined its claim to be the exclusive domestic supplier.

The NNPCL, through its counsel Kehinde Ogunwumiju (SAN), also filed a preliminary objection to the suit.

The national oil company claimed that Dangote Refinery had erroneously sued a non-existent legal entity.

It also argued that the plaintiff lacked the legal standing (locus standi) to seek the reliefs requested.

The objection was supported by an affidavit from a litigation clerk in the representing law firm.

However, the court, presided over by Justice Inyang Ekwo, dismissed the preliminary objection, stating that the error in naming did not render the case invalid.

The court noted that procedural issues should not override substantive justice.

It then allowed Dangote Refinery to amend the suit to correct the misidentification, which was granted on March 19, 2025.

The matter had been slated for hearing on September 29 before Justice Mohammed Umar before the notice of discontinuance was filed, effectively bringing the case to a close, at least for now.

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