Dangote Refinery Drops Legal Action Against NNPC, NMDPRA, And Oil Marketers

 

Dangote Refinery Drops Legal Action Against NNPC, NMDPRA, And Oil Marketers.

Dangote Petroleum Refinery and Petrochemicals has withdrawn its legal action against the Nigerian National Petroleum Company Limited (NNPC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and several oil marketers, marking a significant development in Nigeria’s oil and gas sector. The decision, announced on 28 July 2025, ends a high-profile dispute that had sparked widespread debate about the nation’s energy policies and market dynamics.

The lawsuit, originally filed in September 2024 at the Federal High Court in Abuja under case number FHC/ABJ/CS/1324/2024, sought N100 billion in damages from NMDPRA for issuing import licences to NNPC and marketers, including AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited. Dangote argued that these licences, which allowed the importation of Automotive Gas Oil (AGO) and Jet-A1 aviation fuel, undermined its $20 billion Lekki-based refinery’s operations, as its production capacity exceeded Nigeria’s daily consumption needs. The refinery claimed that continued imports were disrupting its business and violating sections of the Petroleum Industry Act (PIA).

According to Anthony Chiejina, Group Chief Branding and Communications Officer of Dangote Group, the legal action was initiated in June 2024 but has now been discontinued following productive discussions among the parties. The withdrawal aligns with President Bola Tinubu’s directive on crude oil and refined product sales in naira, approved by the Federal Executive Council (FEC), which aims to reduce foreign exchange pressures and stabilise fuel prices. Chiejina noted that the matter, described as an “old issue,” was set to be formally withdrawn at the next court hearing scheduled for January 2025, with no adverse effects on any party involved. 

The decision has been welcomed as a step towards fostering collaboration in Nigeria’s energy sector. Industry observers suggest that the move reflects ongoing efforts to resolve tensions between Dangote Refinery and regulatory authorities, particularly after the FEC’s approval of naira-based crude oil sales to local refineries. This policy is expected to bolster domestic refining capacity and reduce Nigeria’s reliance on imported petroleum products, which cost the country $10 billion in 2024 alone, according to the National Bureau of Statistics.

 However, the withdrawal has raised questions about the future of fuel importation and market competition. Oil marketers, including the Independent Petroleum Marketers Association of Nigeria, have previously argued that a deregulated market allows for free trade, with imports ensuring product availability and competitive pricing. The Petroleum Products Retail Outlet Owners Association of Nigeria also cautioned against policies that could lead to a monopoly, citing risks to energy security and consumer costs. Despite these concerns, the resolution signals a potential shift towards greater cooperation between Dangote Refinery, NNPC, and regulators to support Nigeria’s energy self-sufficiency.

 As the nation anticipates further developments, the focus remains on the implementation of the naira-based crude supply deal and its impact on fuel prices and availability. With Dangote Refinery’s capacity to process 650,000 barrels of crude oil daily, stakeholders are hopeful that this resolution will pave the way for a more stable and self-reliant energy market, benefiting businesses and consumers across Nigeria.

Source: Govima