In a significant legal U-turn, Dangote Petroleum Refinery and Petrochemicals FZE has formally withdrawn its N100 billion lawsuit filed against the Nigerian National Petroleum Company Limited (NNPCL) and several other oil marketers over disputed petroleum product import licenses.
The notice of discontinuance, dated July 28, 2025, was filed before the Federal High Court in Abuja by senior advocate George Ibrahim (SAN), legal counsel to the refinery, as reported by Nairametrics. The case was previously scheduled for hearing on September 29, 2025.
“Take notice that the Plaintiff herein discontinues this suit against the Defendants forthwith,” the court filing read.
Why Dangote Filed the Lawsuit
The refinery, owned by Africa’s richest man, Aliko Dangote, initially dragged NNPCL, Matrix Petroleum, A.A. Rano Limited, and four other oil marketers to court in a bid to invalidate import licenses allegedly issued in violation of the Petroleum Industry Act (PIA). Dangote argued that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had overstepped its statutory authority by granting import rights to companies that could potentially disrupt the refinery’s domestic supply strategy.
In court filings previously obtained by Nairametrics, Dangote’s legal team maintained that the refinery was fully equipped to meet Nigeria’s domestic fuel consumption and accused regulators of enabling anti-competitive practices.
FCCPC’s Failed Attempt to Join the Suit
The Federal Competition and Consumer Protection Commission (FCCPC) had twice attempted to join the lawsuit, raising concerns about a potential petroleum monopoly if Dangote’s refinery were granted exclusive import control. However, Justice Inyang Ekwo dismissed the Commission’s application on March 18, 2025, describing the FCCPC as a “meddlesome interloper” and ruling that it lacked relevance to a case governed by the PIA.
Justice Ekwo emphasized that the PIA does not empower the FCCPC to regulate licensing or interfere in petroleum market operations overseen by the NMDPRA.
Legal Winds Shift
Following multiple procedural skirmishes including the rejection of a preliminary objection filed by the NNPCL the suit was reassigned to Justice Mohammed Umar of the Abuja Division, who had fixed September 29 for substantive hearing. However, with the withdrawal, the Dangote legal team is now expected to make an oral application for discontinuance on that date, in line with standard court procedure.
What This Means for Nigeria’s Oil Sector
The sudden withdrawal of the lawsuit may suggest a behind-the-scenes resolution or a change in Dangote Group’s legal or business strategy. Analysts believe that the move could pave the way for more collaborative industry relations as the refinery ramps up production and supply to local markets.
This development also follows months of regulatory tension and commercial uncertainty surrounding Dangote’s $19 billion refinery in Lekki, Lagos. In recent months, the federal government authorized local marketers to purchase refined petroleum products directly from the Dangote Refinery, bypassing the NNPCL’s role as middleman.
Industry observers have speculated that the discontinuance may be linked to a broader strategic realignment by Dangote, who has recently pushed for President Bola Tinubu’s administration to ban the importation of refined petroleum products under the ‘Nigeria First’ policy.
Background: A Refinery in the Spotlight
Aliko Dangote, whose refinery is considered the largest single-train facility in the world, has faced numerous regulatory hurdles since commissioning began. During the tenure of former NNPCL GMD Mele Kyari, Dangote had accused rival importers of flooding Nigeria with substandard fuel products, undermining local refining efforts.
Despite these challenges, the refinery has gradually begun to distribute diesel and aviation fuel locally, and negotiations for premium motor spirit (PMS) distribution are ongoing.
What to Expect Next
All eyes are now on the September 29 court session, where the judge is expected to formally strike out the case upon confirmation of oral discontinuance. Whether this will open the door to a more harmonious market or further legal complications remains to be seen.
