Dangote Refinery withdraws import licence suit
Dangote Petroleum Refinery and Petrochemicals FZE has withdrawn the lawsuit it filed against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigeria National Petroleum Company Limited (NNPCL) over the issuance of import licences for petroleum products into Nigeria. The case, which sought around ₦100 billion in damages and requested that the import licences be declared invalid, was formally discontinued at the Federal High Court in Abuja on Wednesday.
The suit had originally been filed in September 2024. Dangote Refinery challenged the NMDPRA’s decision to grant import licences to NNPCL and five private companies AYM Shafa Ltd, A.A. Rano Ltd, T.Time Petroleum Ltd, 2015 Petroleum Ltd and Matrix Petroleum Services Ltd arguing that such licences should only be issued under the conditions set out in sections 317 (8) and (9) of the Petroleum Industry Act (PIA) when there was a proven shortfall in domestic supply.
At the hearing, Dangote’s counsel C.O. Adegbe told the court that the company had filed a notice of discontinuance on 28 July this year, after discussions with the defendants. The NMDPRA’s lawyer did not oppose the withdrawal and requested the case be dismissed rather than just struck out. The judge, Justice Mohammed Umar, dismissed the suit without cost.
Industry observers note that the withdrawal follows closely on the heels of a new government policy approval: the President of Nigeria approved a 15 per cent import duty on Premium Motor Spirit (petrol) and diesel. This tariff is intended to support local refining and reduce the advantage of imported products, including those brought in under licence by the very companies Dangote had challenged.
The move may indicate a strategic shift by Dangote with respect to its legal approach, aligning possibly with the new regulatory framework favouring domestic refining capacity. It also highlights the broader tensions in Nigeria’s oil and gas sector over refining, licensing, imports and regulation.
