The Dangote Group has announced that its subsidiary, Dangote Petroleum Refinery and Petrochemicals, plans to withdraw its lawsuit against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The suit was filed in response to the issuance of petroleum import licenses to Nigerian National Petroleum Company (NNPC) Limited, Matrix Petroleum Services Limited, A. A. Rano Limited, AYM Shafa Limited, T. Time Petroleum Limited, and 2015 Petroleum Limited.
Reports circulated earlier that the Dangote Refinery sought to block the federal government from allowing these firms to import petroleum products, which would have made the refinery and other local producers the sole suppliers of petrol in Nigeria. The suit, filed at the Federal High Court in Abuja (No. FHC/ABJ/CS/1324/2024), called for the cancellation of the import licenses, arguing that they contravened the Petroleum Industry Act (PIA), which seeks to promote local production.
Dangote Refinery claimed the licenses jeopardized its $20 billion investment in Lagos’ Lekki area by allowing imports despite no shortfall in local production, thereby violating Sections 317(8) and (9) of the PIA. The refinery argued that the NMDPRA had a responsibility to encourage local producers like Dangote and not issue import licenses unless there was a supply deficit.
However, in a recent statement, Dangote Group’s Chief Branding and Communications Officer, Mr. Anthony Chiejina, confirmed that the issue is being resolved out of court, following President Bola Tinubu’s directive on the “Crude Oil and Refined Products Sales in Naira Initiative,” approved by the Federal Executive Council (FEC). The parties are in ongoing discussions, and there is no intention to proceed with the lawsuit.
“No court orders have been made, and the matter is expected to be formally withdrawn in January 2025,” Chiejina added, assuring that the situation will have no adverse effects on any party.
