Dangote Petroleum Refinery and Petrochemicals has withdrawn its lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company Limited (NNPCL), and five other petroleum companies.

The case, filed at the Federal High Court Abuja, was formally withdrawn by the plaintiff?s legal team.

According to a notice of discontinuance filed before the court, Dangote Refinery resolved to end the proceedings against all seven defendants, including AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.

In the notice, no official reason was given for its decision to discontinue the case. Details of the decision, including the reliefs sought and whether an out-of-court settlement was reached, remain unclear.

In the suit, Dangote Refinery had requested the court to award ?100 billion in damages against the NMDPRA for issuing import licenses to some marketers and allowing the importation of petroleum products.

The marketers are NNPC Ltd, Matrix Petroleum Services Limited, AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, and 2015 Petroleum Limited.

The plaintiff asked the court to declare that NMDPRA is allegedly in violation of Sections 317(8) and (9) of the Petroleum Industry Act by issuing licenses for the importation of petroleum products.

The Dangote Refinery said such licenses should only be issued when a petroleum product shortfall exists. The refinery also urged the court to declare that NMDPRA violates its statutory responsibilities under the Petroleum Industry Act (PIA) for not encouraging local refineries such as Dangote Refinery.

But in a counter affidavit, the marketers requested that the court dismiss Dangote Refinery?s claims, insisting that competitive practices are essential to Nigeria?s economic health and the oil sector?s viability.

They argued that they are fully qualified to receive an import licence from NMDPRA, under Section 317(9) of the PIA. The three defendants claim the plaintiff allegedly seeks to monopolise the petroleum industry in Nigeria, where it alone would control supply, distribution, and pricing.

NMDPRA further clarified that it issued oil licences to NNPC Limited and oil marketers to address petroleum product shortfalls in the country.

In its counter-affidavit, sworn to by Idris Musa, a Senior Regulatory Officer, NMDPRA, argued that Dangote Refinery was not entitled to the prayers sought. Musa said the refinery?s production does not meet the national daily consumption requirement.

He added that, in line with Section 317(9) of the Petroleum Industry Act, NMDPRA issued import licences to companies with a track record of international products trading to bridge the supply gap.

Musa said the agency is mandated to promote competition and prevent monopolies in the sector, denying allegations of conspiracy against the plaintiff.

On 9 December 2024, the plaintiff sought a motion to amend its originating process to correct the name of the second defendant from ?Nigeria National Petroleum Corporation Limited? to ?Nigerian National Petroleum Company Limited.?

In response, the second defendant, NNPC Limited, raised a preliminary objection, arguing that the suit was incompetent and should be struck out for misidentification, among other grounds. The objection was supported by an affidavit deposed to by Isiaka Popoola, a litigation clerk in the law firm representing the company.

On 18 March 2025, the then-judge, Inyang Ekwo, dismissed the objection, ruling that the error in name did not render the suit defective. The court also held that the defendants should have responded to the substantive claims before raising procedural objections. (ChannelsTV)

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