In a surprising turn of events, the Dangote Group has announced it will withdraw its ₦100 billion lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) over the issuance of import licenses to the Nigerian National Petroleum Company Limited (NNPCL), Matrix Petroleum Services Limited, AA Rano Limited, and four other companies, despite local production of petroleum products.
In a statement on Monday, the Dangote Group described the lawsuit, filed at the Federal High Court in Abuja on September 6, 2024, as “an old issue” that has since been overtaken by recent developments.
Anthony Chiejina, the group’s spokesperson, said the parties involved in the case have entered into reconciliation talks and that the refinery no longer intends to proceed with the suit.
“We have agreed to stop the proceedings,” Chiejina said. “It’s important to note that no orders have been made, and there are no negative impacts on any party.”
He added that the case is expected to be formally withdrawn when it comes up in court in January 2025.
In its original claim, Dangote Refinery had argued that the NMDPRA breached sections 317(8) and (9) of the Petroleum Industry Act (PIA) by granting import licenses when there was no shortage of petroleum products. The refinery claimed that these licenses should only be issued when there is a proven need for imported fuel.
The group had stated that the licenses issued to other companies negatively affected its business, which has invested billions of dollars in production, causing a lack of demand for its products. The refinery had sought an injunction to prevent NMDPRA from issuing or renewing import licenses for the defendants.
Justice Inyang Ekwo, who presided over the case, adjourned the matter to January 20, 2025, for an official report.
In December last year, Aliko Dangote, Africa’s foremost industrialist, launched operations at his $20 billion refinery in Lagos, with an initial capacity of 350,000 barrels per day. The refinery, initially delayed by regulatory challenges, aims to reach full capacity of 650,000 barrels per day by the end of the year.
The refinery has already begun supplying diesel, aviation fuel, and petrol to the Nigerian market.
Nigeria, Africa’s most populous nation, continues to grapple with energy issues, as its state-owned refineries remain non-operational. The country relies heavily on imported refined petroleum products, with NNPCL being the primary importer. Since the removal of fuel subsidies in May 2023, petrol prices have skyrocketed from around ₦200 per litre to over ₦1,000 per litre, worsening the struggles of citizens who depend on petrol to power their vehicles and generators due to unreliable electricity supply.