In a significant development, the Dangote Group has announced its intention to withdraw its ₦100 billion lawsuit filed against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), along with several other companies. The lawsuit, filed on September 6, 2024, challenged the issuance of import licenses to the Nigerian National Petroleum Company Limited (NNPCL), Matrix Petroleum Services Limited, AA Rano Limited, and others, despite local production of petroleum products at the Dangote Refinery.
According to a statement released by the Dangote Group’s spokesperson, Anthony Chiejina, the lawsuit has become an “old issue” and is no longer relevant, as conciliatory discussions between the parties involved have begun following the intervention of President Bola Tinubu. Chiejina added that the refinery does not intend to continue with the suit. “We have agreed to put a halt to the proceedings. No orders have been made, and there are no adverse effects on any party,” Chiejina confirmed.
He further noted that the formal withdrawal of the suit is expected to occur when the matter comes up in court in January 2025.
The lawsuit had accused the NMDPRA of violating sections 317(8) and (9) of the Petroleum Industry Act (PIA) by granting import licenses despite there being no product shortfall in the market. Dangote Refinery argued that this undermined its business and hindered the full utilization of its production capacity.
As one of Africa’s most significant industrial projects, the Dangote Refinery, located in Lagos, commenced operations in 2023. While the facility aims to achieve a full production capacity of 650,000 barrels per day, it is currently supplying diesel, aviation fuel, and petrol to the Nigerian market. The refinery’s operations are seen as critical to reducing Nigeria’s dependence on imported petroleum products, especially with ongoing fuel shortages and rising prices following the removal of fuel subsidies.
The legal battle had initially sought to prevent the NMDPRA from issuing or renewing import licenses for the defendants, a move the Dangote Group believed would protect its multibillion-dollar investment.
The case has been adjourned to January 20, 2025, for the final report, and all eyes remain on how the discussions between the stakeholders will play out as Nigeria continues to navigate its energy challenges.
