NEWS
₦100bn Lawsuit: Oil Sector Legal Drama Ends As Dangote Withdraws Case
The Dangote Petroleum Refinery and Petrochemicals has decided to discontinue its ₦100 billion legal action against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian National Petroleum Company Limited (NNPCL), and five other major petroleum marketers.
The suit, which was pending before the Federal High Court in Abuja, was officially withdrawn after Dangote’s legal team filed a notice of discontinuance.
Though the court documents confirm the case has been dropped, they offer no explanation for the refinery’s change of course, nor is it clear whether an out-of-court resolution was reached.
READ MORE: Dangote Describes Tinubu as a Listening President, with Pro-Private Sector Policies
Among the parties previously dragged into the lawsuit were AYM Shafa Limited, A. A. Rano Limited, Matrix Petroleum Services Limited, T. Time Petroleum Limited, and 2015 Petroleum Limited.
At the heart of the dispute was the allegation that the NMDPRA had been breaching the Petroleum Industry Act by issuing import licences to various marketers without proof of domestic supply shortfalls.
Dangote Refinery asked the court to declare this practice unlawful, arguing that “such licenses should only be issued when a petroleum product shortfall exists.”
The refinery further asserted that NMDPRA had failed in its regulatory duty by not promoting and supporting local refining capacity, claiming the agency “violates its statutory responsibilities under the Petroleum Industry Act (PIA) for not encouraging local refineries such as Dangote Refinery.”
In response, the defendants argued that the licensing process complied with legal provisions and was necessary to meet market demand.
They insisted that their operations were legitimate, highlighting that they were “fully qualified to receive an import licence from NMDPRA, under Section 317(9) of the PIA.”
The marketers also accused Dangote Refinery of attempting to corner the petroleum industry, stating that the company “seeks to monopolise the petroleum industry in Nigeria, where it alone would control supply, distribution, and pricing.”
Backing this claim, Idris Musa, a Senior Regulatory Officer at NMDPRA, stated in a counter-affidavit that Dangote’s refining output was insufficient to meet the country’s daily fuel demand.
“In line with Section 317(9) of the Petroleum Industry Act, NMDPRA issued import licences to companies with a track record of international products trading to bridge the supply gap,” he noted.
Musa further emphasized that the regulator’s mandate includes “promoting competition and preventing monopolies in the sector,” firmly denying any coordinated attempt to sabotage Dangote’s operations.
The legal back-and-forth also featured procedural complications.
In December 2024, Dangote Refinery moved to amend the suit to correct a naming error, replacing “Nigeria National Petroleum Corporation Limited” with the correct entity, “Nigerian National Petroleum Company Limited.”
NNPCL responded with a preliminary objection, calling the suit “incompetent” due to the misidentification.
However, Justice Inyang Ekwo dismissed the objection on March 18, 2025, ruling that the error did not invalidate the suit.
He maintained that “the defendants should have responded to the substantive claims before raising procedural objections.”
NEWS
NUPRC Sets Revocation Date for Undeveloped Oil Licences
Licensed Oil and gas operators now have until October 31 to demonstrate compliance with their licence obligations or risk losing their acreages.
The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, made the disclosure at an energy conference organised by the Harvard Business School Association of Nigeria in Lagos on Friday.
She cautioned that the regulator would enforce the drill-or-drop provisions of the Petroleum Industry Act (PIA) against operators that failed to develop their assets.
“Now the PIA has instituted the drill-or-drop mechanism. So, before you take the block, you know whether it’s a gas asset, you know whether it’s an oil and gas asset, and you must come up with concrete plans to unlock your resources,” Eyesan said.
READ ALSO: FG Lacks Capacity to Meet Dangote Refinery Crude Demand
She said the commission had issued a circular directing affected operators to respond before the deadline, warning that those who failed to do so would face regulatory action.
“And as a matter of fact, we’ve issued a circular, and we say by 31st of this month, for those who are not responsive, you can be rest assured that I am coming after you,” she threatened.
Eyesan also explained that operators holding onshore assets were expected to undertake the required work within the stipulated three-year period, warning that the commission would call up assets where companies failed to develop their acreages.
“For those onshore, you have three years. Within three years in the first instance, if you do nothing about those assets, we will call it up,” she said.
The commission’s warning comes as it moves to enforce work commitments attached to licences awarded through recent licensing exercises, with affected operators required to explain delays in executing their approved work programmes and show how they intend to address the challenges.
NEWS
Heritage Energy on Ways of Unlocking Oil Industry Investment
Strategy for unlocking Nigeria’s oil industry investment must focus on access to capital, technology, markets and regulatory certainty, in addition to physical assets.
These views were shared by the Heritage Energy Operational Services Limited (HEOSL) in a goodwill message at the Association of Energy Correspondents (NAEC) Energy Energy Conference 2026, in Lagos, themed: “Access to Assets: Empowering Players and Driving Growth.”
Delivering the message on behalf of the CEO, Ado Oseragbaje, General Manager, Government, Joint Venture & External Relations, Heritage Energy, Ohioze Unuigbe, commended the NAEC for convening what he described as a strategic platform for dialogue on issues shaping Nigeria’s energy sector.
READ ALSO: NCDMB, Renaissance Empower 60 with Oil & Gas Technical Skills
According to him, the conference theme is both timely and strategic at a period when the industry is seeking to increase production and attract investment.
“Access to assets must go beyond physical access to oil and gas resources. It must also include access to capital, infrastructure, technology, markets, skilled talent, regulatory certainty and strong partnerships. These are essential to unlocking investment, increasing production and strengthening Nigeria’s energy security,” he said.
Unuigbe noted that while access to an asset is critical, real value is created by how effectively, safely and responsibly the asset is operated.
He disclosed that Heritage Energy’s Operational Management System (OMS) provides the discipline for responsible operations, by bringing together People, Plans, Processes and Performance to embed operational excellence, strengthen accountability and manage risk.
This, he said, is particularly important in a complex environment such as OML 30, where sustainable performance depends on effective collaboration among staff, partners, regulators, host communities and other stakeholders.
He stressed that sustainable value creation goes beyond production to include safety, environmental stewardship, responsible asset management, local capacity development and meaningful host community engagement, alongside investment in infrastructure, technology and Nigeria’s gas resources.
“No operator can achieve this alone. Government, regulators, investors, operators, partners, host communities and the media all have important roles to play. Trust, transparency and constructive engagement must remain at the heart of these relationships,” he added.
The Heritage Energy GM also lauded the role of the energy media in promoting informed discourse, transparency and accountability, calling for continued collaboration to support accurate and balanced reporting.
“Nigeria’s energy opportunity is significant. Our collective task is to ensure that access to assets translates into access to opportunity, value creation and sustainable growth,” Unuigbe stated.
He reaffirmed Heritage Energy’s commitment to responsible operations, operational excellence and stakeholder collaboration in building a stronger and more sustainable Nigerian energy industry.
NEWS
Fuel Discount: Presidency Explains Why Atiku’s Production Subsidy Proposal May Fail
The Presidency has explained why former Vice President Atiku Abubakar’s proposed production subsidy for locally refined petrol could be difficult to implement, arguing that Nigeria lacks sufficient freely available crude oil to sustain the policy.
President Bola Tinubu’s Special Adviser on Media and Public Communications, Sunday Dare, made the position known in a statement issued on Sunday, October 11, 2026, titled “Atiku’s Demagoguery in the Face of Tinubu’s Logical Policies.”
Dare was responding to Atiku’s criticism of the Federal Government’s 30-day petrol discount offered through the Nigerian National Petroleum Company Limited (NNPC) Retail and its proposed fuel price modulation framework.
SEE ALSO: PETROAN Expects Fuel Discount to Combat Inflation
Atiku had described the temporary discount as a publicity stunt, questioning its sustainability and accusing Tinubu of adopting his economic proposal without incorporating the production subsidy he advocated.
However, the presidential aide argued that Atiku’s proposal failed to adequately account for Nigeria’s crude oil production arrangements, existing contractual obligations and the financial implications of subsidising petroleum products.
According to Dare, Nigeria produces approximately 1.8 million barrels of crude oil daily, but the Federal Government does not have unrestricted access to the entire volume.
He said joint ventures and production-sharing contracts, alongside production costs, royalties and profit-sharing arrangements, significantly reduce the quantity of crude available to the state.
“After accounting for these statutory and contractual obligations, Nigeria has fewer than 700,000 barrels per day of unencumbered ‘free crude’ to give away,” Dare stated.
He argued that using crude oil to fund a broad production subsidy without sufficient freely available supplies could undermine government revenues and expose the country to financial risks.
Dare maintained that domestic refineries, including the Dangote Petroleum Refinery, require substantial volumes of crude oil, making it difficult for the government to meet their needs solely from crude available for unrestricted allocation.
He argued that domestic refiners would still need to obtain additional crude through other arrangements, including purchases from international markets.
The presidential aide warned that a production subsidy without adequate crude supplies and clearly defined financial safeguards could recreate some of the problems associated with Nigeria’s former petrol subsidy regime.
He said such a policy could encourage opaque transactions, fraudulent claims and financial losses if its implementation was not properly structured.
Atiku has advocated shifting government support away from subsidising imported petrol towards supporting qualifying domestic refiners through preferential crude oil pricing, with the aim of reducing costs for consumers.
The proposal has become a subject of political and economic debate as Nigerians continue to grapple with high petrol prices and the wider cost-of-living crisis.
Presidency Defends 30-Day Petrol Discount
Dare also rejected the suggestion that NNPC Retail’s decision to forgo its profit margin temporarily amounted to a restoration of the former petrol subsidy.
He said the discount was initially introduced as part of activities marking Nigeria’s 66th Independence anniversary before being extended for another 30 days.
According to him, the arrangement allows NNPC Retail to absorb short-term market pressures without reinstating the previous system of government-funded fuel subsidies.
The presidential aide also defended the proposed N1,350-per-litre ceiling on ex-gantry costs, describing it as a mechanism to moderate sudden increases in fuel prices.
Under the framework outlined in the statement, refiners and importers would absorb temporary cost increases above the ceiling and recover those costs when market conditions improve.
Dare argued that the measure could help reduce the impact of abrupt fuel price changes on transport fares and household expenses.
The presidential aide further defended the administration’s broader economic reforms, including petrol subsidy removal and foreign exchange market reforms introduced in 2023.
He cited the expansion of compressed natural gas infrastructure, direct cash transfers to vulnerable households, support for small businesses and increased federal allocations to states and local governments as part of the government’s response to economic pressures.
Dare maintained that the administration was pursuing a combination of market-based pricing and targeted interventions to manage the effects of international oil market volatility.
He argued that the country needed structural economic measures rather than temporary interventions that could place additional pressure on public finances.





