THE Federal High Court in Abuja has dismissed the ₦100 billion lawsuit filed by Dangote Petroleum Refinery and Petrochemicals Free Zone Enterprise (FZE) against the Nigerian National Petroleum Company Limited (NNPCL) and several major oil marketers over the issuance of petroleum import licences.
News Point Nigeria reports that Justice Mohammed Umar struck out the case on Wednesday after counsel to Dangote Refinery, C.O. Adegbe, informed the court of the company’s decision to withdraw the suit. The judge ruled that since pleadings had already been exchanged and trial was set to commence, the proper order was dismissal but without costs.
“The case on record is that parties have joined issues and what remains is for adoption of processes. The matter is deemed for dismissal. Since cost is not requested, the case is hereby dismissed without cost,” Justice Umar held.
Originally filed before Justice Inyang Ekwo before being reassigned to Justice Umar, the suit sought to nullify import licences granted to NNPCL and five other downstream operators by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The company argued that the issuance of these licences undermined the full takeoff and viability of the newly commissioned Dangote Refinery which is expected to reduce Nigeria’s heavy reliance on imported refined petroleum products.
Joined as co-defendants were: Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigerian National Petroleum Company Limited (NNPCL), AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited and Matrix Petroleum Services Limited
Dangote Refinery had demanded ₦100 billion in damages against NMDPRA, accusing the regulator of breaching provisions of the Petroleum Industry Act by continuing to issue import licences despite assurances of domestic refining capacity.
During Wednesday’s hearing, NMDPRA’s counsel, I.B. Ahmad, acknowledged the notice of discontinuance but urged the court to dismiss the suit entirely rather than strike it out to prevent a re-filing.
Other defence lawyers, including Chris Ekemezie (representing AYM Shafa, A.A. Rano and Matrix) and SAN Mofesomo Tayo-Oyetibo (representing T. Time and 2015 Petroleum), aligned with Ahmad’s request.
Ekemezie argued that Dangote’s move was strategic: “It seems the plaintiff plans to go and panel-beat its case and come back after seeing it is bad. We urge the court to dismiss it with substantive cost,” he said.
Adegbe opposed their submissions, insisting that earlier discussions with the defendants supported a striking-out rather than dismissal. But Justice Umar held that the advanced stage of proceedings warranted full dismissal.
The ruling means Dangote Refinery cannot re-file the case as the matter has now been decided in favour of NNPCL and the oil marketers.
The decision may also reshape discussions within the oil and gas industry regarding protectionism after the Dangote Refinery begins large-scale domestic supply.
Neither Dangote Refinery nor NNPCL has issued public statements on the ruling as at press time.