In a surprising twist of events, the Dangote Group says it will withdraw its ₦100bn suit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for granting 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. 

 

The Dangote Group, in a statement late Monday, said the suit filed at the Federal High Court in Abuja on September 6, 2024, was “an old issue” and that events have overtaken the suit.

A spokesman for the group, Anthony Chiejina, said the parties involved in the suit have commenced conciliatory talks. He also said that the refinery does not have any intention of proceeding with the suit.

“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.

 

 A fleet of trucks are seen lifting Premium Motor Spirit, known as petrol, at the refinery located in the Ibeju-Lekki area of Lagos State. Credit: X/ @DangoteGroup

In its originating summons, Dangote Refinery argued that the NMDPRA violated sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing import licenses under circumstances where no product shortfall exists.

 

The refinery had contended that such licenses should only be granted when there is a demonstrated need for imported products.

The group had stated that the import licenses issued to other companies are detrimental to its business, which has invested billions of dollars into production. The company had claimed that these actions have resulted in a lack of patronage for Dangote’s products.

The refinery sought an injunction to prevent the NMDPRA from issuing or renewing import licenses for the defendants.

The presiding judge, Justice Inyang Ekwo, on Monday, adjourned the case to January 20, 2025, for the report.

 

Last December, Aliko Dangote, Africa’s leading industrialist, commenced operations at his $20bn facility sited in Lagos with 350,000 barrels a day.

The refinery, which was initially bogged by regulatory battles, hopes to achieve its full capacity of 650,000 barrels per day by the end of the year.

The refinery has begun the supply of diesel and aviation fuel to marketers in the country and now petrol.

Nigeria, Africa’s most populous nation, faces energy challenges, with all its state-owned refineries non-operational. The country is heavily reliant on imported refined petroleum products, with the state-run NNPCL being the major importer of the essential commodities.

Fuel queues are commonplace in the country. Prices of petrol tripled since the removal of subsidy in May 2023, from around ₦200/litre to over ₦1000/litre, compounding the woes of the citizens who power their vehicles, and generating sets with petrol, no thanks to decades-long epileptic electricity supply.