In a surprising development, the Dangote Group has announced plans to withdraw its ₦100bn lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The suit had been filed in opposition to the granting of import licences 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 released late Monday, the Dangote Group described the case, which was filed at the Federal High Court in Abuja on 6th September 2024, as an “old issue” that has since been overtaken by events. The company’s spokesperson, Anthony Chiejina, confirmed that conciliatory discussions had begun between the involved parties and that there was no longer any intention to pursue the case.

“We have agreed to halt the proceedings,” Chiejina stated. “It’s important to note that no orders have been issued, and there have been no adverse effects on any party. Once the matter comes up in January 2025, we expect to formally withdraw it.”

In its original summons, the Dangote Refinery argued that the NMDPRA had breached Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing import licences under conditions where no product shortfall existed. The refinery maintained that such licences should only be issued when there is a clear demand for imported products.

The group further claimed that the import licences granted to other companies were detrimental to its business, which had invested billions of dollars in local production, resulting in reduced demand for its products. The refinery sought an injunction to prevent the NMDPRA from issuing or renewing import licences for the defendants.

Justice Inyang Ekwo, presiding over the case, adjourned it to 20th January 2025 for further updates.

Last December, Aliko Dangote, Africa’s foremost industrialist, inaugurated his $20bn refinery in Lagos, with an initial output of 350,000 barrels per day. Despite regulatory challenges, the refinery aims to reach its full capacity of 650,000 barrels per day by the end of this year. It has already begun supplying diesel, aviation fuel, and petrol to the domestic market.

Nigeria, Africa’s most populous nation, continues to grapple with energy challenges, with all state-owned refineries non-operational and the country heavily reliant on imported petroleum products. The NNPCL remains the primary importer, and petrol prices have soared since the removal of subsidies in May 2023, causing fuel queues and significant hardship for citizens who rely on petrol for transportation and electricity generation due to erratic power supply.