Dangote Group Set to Withdraw ₦100 Billion Lawsuit Against NMDPRA and Others

The Dangote Group has announced its intention to withdraw a ₦100 billion lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other entities, signaling a potential resolution.

In an unexpected turn of events, the Dangote Group has announced its decision to retract its ₦100 billion lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The suit was initially filed in response to NMDPRA issuing import licenses to several companies including the Nigerian National Petroleum Company Limited (NNPCL), Matrix Petroleum Services Limited, AA Rano Limited, among others, despite local petroleum production capabilities.

In a statement released late Monday, the Dangote Group mentioned that the lawsuit filed at the Federal High Court in Abuja on September 6, 2024, was “an old issue” and has since been surpassed by subsequent events.

Anthony Chiejina, a spokesman for the group, announced that the parties involved in the lawsuit have begun conciliatory discussions. He also mentioned that the refinery has no intention of moving forward with legal action.

We have decided to stop the proceedings.

It is crucial to emphasize that no orders have been issued, and there are no negative impacts on any party.

“We understand that when the case is addressed in January 2025, 23 will be able to formally withdraw it from court,” Chiejina stated.

A fleet of trucks is observed loading Premium Motor Spirit, also known as petrol, at the refinery in Lagos State’s Ibeju-Lekki area. Credit: X/@DangoteGroup

In its initial legal filing, Dangote Refinery contended that the NMDPRA breached sections 317(8) and (9) of the Petroleum Industry Act (PIA) by granting import licenses in situations where there is no shortage of products.

READ ALSO: Dangote Refinery Seeks Court to Nullify Import Licenses of NNPCL and Others in ₦100 Billion Lawsuit

The refinery had argued that such licenses should be issued only when a demonstrated need for imported products exists.

The group claimed that the import licenses granted to other companies are harming its business, which has invested billions of dollars into production. The company argued that these actions have led to a decline in demand for Dangote’s products.

The refinery requested a court order to stop the NMDPRA from granting or renewing import licenses for the defendants.

On Monday, Justice Inyang Ekwo, the presiding judge, postponed the case to January 20, 2025, for the report.

In December of last year, Aliko Dangote, a prominent industrialist in Africa, began operations at his $20 billion facility located in Lagos, which has a capacity of 350,000 barrels per day.

Initially hindered by regulatory disputes, the refinery aims to reach its full capacity of 650,000 barrels per day by year’s end.

The refinery has commenced supplying diesel and aviation fuel to marketers in the country, and it is now also providing petrol.

Nigeria, the most populous country in Africa, is confronted with energy challenges as none of its state-owned refineries are operational. The nation depends significantly on imported refined petroleum products, primarily brought in by the government-run NNPCL, which serves as the main importer of these crucial commodities.

Fuel queues have become a regular occurrence in the country. Since the subsidy was removed in May 2023, petrol prices have surged from approximately ₦200 per litre to over ₦1000 per litre. This dramatic increase has intensified the challenges faced by citizens who rely on petrol for their vehicles and generators, compounded by decades of unreliable electricity supply.