The Dangote Petroleum Refinery and Petrochemicals has formally withdrawn a ₦100 billion lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company Limited (NNPC), and five other petroleum companies, as confirmed by court filings on July 29, 2025.
The case, initially lodged at the Federal High Court in Abuja under suit number FHC/ABJ/CS/1324/2024, sought damages and a declaration that NMDPRA’s issuance of import licenses to companies like NNPC, Matrix Petroleum Services Limited, AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, and 2015 Petroleum Limited violated the Petroleum Industry Act, alleging no domestic supply shortfall justified imports. The refinery claimed its production capacity, exceeding 650,000 barrels per day, met national demand, a contention disputed by NMDPRA, which argued in a counter-affidavit that output fell short and competition was essential.
The withdrawal, executed through a notice of discontinuance by the plaintiff’s legal team, lacks an official explanation, leaving speculation about an out-of-court settlement or strategic shift. Reports suggest the move may relate to recent government directives, including President Bola Tinubu’s order for NNPC to supply crude in naira, potentially altering the refinery’s market dynamics. However, details remain opaque, with neither party commenting publicly.
The refinery, commissioned in May 2023 and operational since January 2024, has been a focal point of tension with regulators, previously accusing NMDPRA of enabling substandard fuel imports. Critics question whether this withdrawal signals a resolution or a tactical retreat, given the refinery’s ongoing struggle to secure adequate local crude, importing 9-10 million barrels monthly from the U.S. and elsewhere. The narrative of legal de-escalation is intriguing, but its implications—whether economic compromise or regulatory pressure, require further clarity.