In a surprising turn of events, Dangote Petroleum Refinery and Petrochemicals FZE has withdrawn its N100 billion legal action against the Nigerian National Petroleum Company Limited (NNPCL), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and several oil marketers, including AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.
The lawsuit, filed in September 2024 at the Federal High Court in Abuja (case number FHC/ABJ/CS/1324/2024), sought to nullify import licenses issued to NNPCL and other companies for petroleum products like Automotive Gas Oil (AGO) and Jet-A1, citing a threat to local refining efforts.
The legal action stemmed from Dangote’s claim that their 650,000 barrels-per-day refinery in Lagos could meet Nigeria’s daily fuel consumption needs, rendering imports unnecessary.
The company accused NMDPRA of undermining the Petroleum Industry Act (PIA) by issuing import licenses and sought N100 billion in damages for losses incurred due to these actions. The case had been adjourned to January 20, 2025, for further discussions, but Dangote announced the withdrawal today without disclosing specific reasons.
Speculation surrounds the decision, with industry insiders pointing to recent government interventions as a possible factor.
President Bola Tinubu’s directive for crude oil and refined product sales in naira, approved by the Federal Executive Council, aimed to ease foreign exchange pressures and stabilize fuel prices.
This policy may have addressed some of Dangote’s concerns about import competition, potentially paving the way for the lawsuit’s discontinuation.
The withdrawal has sparked mixed reactions. Supporters of the refinery view it as a step toward collaboration with regulators and marketers, while critics warn that unresolved tensions could resurface.
Oil marketers had previously argued that banning imports risked creating a monopoly, potentially driving up fuel prices for consumers.
Dangote, however, maintained that its refinery’s output could ensure energy security and reduce Nigeria’s reliance on imported fuel.
For now, all eyes remain on Dangote Refinery and its role in shaping the nation’s petroleum industry.
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