The Dangote Group has decided to withdraw its ₦100bn lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for granting import licenses to companies such as Nigerian National Petroleum Company Limited (NNPCL), Matrix Petroleum Services Limited, AA Rano Limited, and four others despite local petroleum production.
The Dangote Group claimed in a statement late Monday that the complaint, filed at the Federal High Court in Abuja on September 6, 2024, was “an old issue” and that circumstances had overtaken it.
Anthony Chiejina, a spokesman for the group, said the parties involved in the lawsuit had begun conciliatory negotiations. He further stated that the refinery had no intention of proceeding with the lawsuit.
“We have agreed to put a halt to the proceedings.
“It is important to stress that no orders have been made and there are no adverse effects on any party.
“We understand that once the matter comes up in January 2025, 23 would be in a position to formally withdraw the matter in court,” Chiejina said.
Dangote Refinery filed a summons alleging that the NMDPRA violated PIA sections 317(8) and (9) by giving import licenses when there is no product shortage.
The refinery had argued that such licenses should only be issued when there is a demonstrable requirement for imported products.
The group claimed that the import licenses granted to other companies were damaging to its business, which had invested billions of dollars in production. The firm stated that these activities had resulted in a lack of demand for Dangote’s products.
The refinery requested an injunction prohibiting the NMDPRA from issuing or renewing import licenses for the defendants.
On Monday, the presiding judge, Justice Inyang Ekwo, adjourned the case until January 20, 2025, for the report.
Last December, Aliko Dangote, Africa’s leading industrialist, began operations at his $20 billion facility in Lagos, producing 350,000 barrels per day.
The refinery, which was previously hampered by regulatory battles, hopes to reach full capacity of 650,000 barrels per day by the end of the year.
The refinery has begun to supply diesel and aviation fuel to the country’s marketers, as well as petrol.
Nigeria, Africa’s most populous country, is facing energy challenges, with all of its state-owned refineries inoperable. The country relies heavily on imported refined petroleum products, with the state-owned NNPCL being the primary importer of these essential commodities.
Fuel queues are common throughout the country. Petrol prices have tripled since the removal of subsidies in May 2023, from around ₦200/litre to over ₦1000/litre. This has compounded the woes of citizens who rely on petrol to power their vehicles and generate electricity due to the decades-long epileptic supply.
