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Dangote Group To Withdraw ₦100bn Lawsuit Against NMDPRA Amid Ongoing Talks
The Dangote Group has announced plans to withdraw its ₦100bn lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), following ongoing conciliatory talks.
The legal dispute, which arose from the NMDPRA’s issuance of import licenses to several companies, including the Nigerian National Petroleum Company Limited (NNPCL), has now been deemed “an old issue” by the group.
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The lawsuit, initially filed at the Federal High Court in Abuja on September 6, 2024, challenged the issuance of licenses to companies such as Matrix Petroleum Services Limited, AA Rano Limited, and four others, despite the availability of locally produced petroleum products.
Dangote Refinery had argued that these licenses violated sections 317(8) and (9) of the Petroleum Industry Act (PIA), which allow imports only when there is a proven shortfall in local production.
In a statement released late Monday, the Dangote Group confirmed that it no longer intends to pursue the case.
Group spokesperson Anthony Chiejina said the parties involved have opened discussions to resolve the matter out of court.
“We have agreed to put a halt to the proceedings. No orders have been made, and there are no adverse effects on any party involved,” Chiejina said, adding that the case would likely be formally withdrawn in January 2025.
The legal battle was seen as a significant move by Dangote to protect its multi-billion-dollar refinery, which began operations in December 2023.
Dangote Refinery, with an initial capacity of 350,000 barrels per day, aims to ramp up production to 650,000 barrels per day by the end of 2024.
The company had argued that the import licenses issued by the NMDPRA were detrimental to its business, leading to a decline in demand for its locally produced products.
Background and Impact on the Petroleum Sector
The Dangote Refinery, Africa’s largest, was developed to reduce Nigeria’s dependence on imported refined petroleum products.
The country, despite being one of the world’s top oil producers, has long struggled with fuel scarcity, as all of its state-owned refineries remain non-operational.
As a result, Nigeria heavily relies on imports, with NNPCL being the primary importer.
The legal confrontation emerged at a time when fuel prices in Nigeria have skyrocketed.
Following the removal of fuel subsidies in May 2023, petrol prices have surged from ₦200 per litre to over ₦1,000 per litre, exacerbating inflation and placing additional strain on Nigerians, who rely on fuel for transportation and power generation due to erratic electricity supply.
The Dangote Group’s lawsuit contended that the NMDPRA’s decision to issue import licenses was unwarranted, as the refinery was capable of meeting local demand.
The group sought an injunction to prevent further issuance of these licenses, arguing that local production should be prioritized.
Court Proceedings and Next Steps
The case, which was adjourned by Justice Inyang Ekwo to January 20, 2025, is now expected to be formally withdrawn.
According to the Dangote Group, the matter is now being addressed through out-of-court talks, signaling a shift towards reconciliation between the refinery and the regulatory body.
With Dangote Refinery continuing to expand its production and supply of key petroleum products, including diesel, aviation fuel, and petrol, industry experts are watching closely to see how this resolution will impact Nigeria’s energy landscape.
The Dangote Group’s refinery remains a crucial player in Nigeria’s effort to reduce its reliance on imported fuel, as the country grapples with energy supply challenges that have persisted for decades.
The presidential candidate of the Labour Party (LP) in Nigeria’s 2023 presidential election, Peter Obi has expressed joy at the Port Harcourt Refinery coming back into production, and is already looking forward to its possible positive impact on the economy.
He took to his verified handle on micro-blogging site, X, on Tuesday to congratulation the state oil major, the Nigerian National Petroleum Company Limited (NNPC Ltd) for pulling the feat.
In the congratulatory statement, the leading opposition voice noted the positive impact it could make and pointed out that “Nigerians now await the corresponding impact and benefits on pump prices and the overall economy.”
The former Anambara State Governor, wrote, “I wish to congratulate the Nigerian National Petroleum Corporation (NNPC) for fulfilling the long-standing promise of revamping the old Port Harcourt refinery.
“The refinery, which comes on stream today boasts an installed production capacity of 60,000 barrels of crude oil per day. Approximately 200 trucks are expected to load products daily from the refinery.
“Nigerians now await the corresponding impact and benefits on pump prices and the overall economy.
“Additionally, news of the Kaduna refinery’s revival is promising, as it is expected to boost productivity, improve transportation, and alleviate economic burdens across the country.
“While we acknowledge these achievements as a step in the right direction, it is crucial to emphasize the importance of transparency in the operations of the NNPC.
“Nigerians deserve clarity and accountability regarding the management of the nation’s vital oil resources, ensuring that the benefits of increased refining capacity reach every Nigerian and that the gains are used to support long-term development.
“A new Nigeria is POssible!”
Enugu State Governor Peter Mbah has presented a ₦971 billion budget proposal for 2025, reflecting an 86.4% increase from the previous year.
Dubbed the “Budget of Exponential Growth and Inclusive Prosperity,” the proposal includes ₦837.9 billion for capital expenditure and ₦133.1 billion for recurrent costs.
Mbah emphasised the focus on private investment, poverty eradication, and elevating the state’s economy. Notably, ₦320.6 billion is allocated to education, making up 33.2% of the total budget, underscoring its role in driving growth and reducing poverty.
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“Education is both our ‘sword’ and ‘shield’ in this battle to achieve economic growth in our state and banish poverty among our people. This allocation maintains the ambitious direction we set in 2024,” he said.
The governor also announced a dramatic increase in the state’s Internally Generated Revenue (IGR), which rose from ₦37.4 billion in 2023 to ₦144.7 billion by September 2024, marking a 286.2% growth.
Mbah attributed this growth to deliberate measures to reduce reliance on federal allocations. He expressed confidence that the IGR would surpass ₦200 billion by the end of 2024.
The capital expenditure will be funded through a ₦559 billion transfer from the Consolidated Revenue Fund and ₦278.9 billion in capital receipts from external aid, grants, and loans.
The Speaker of the Enugu State House of Assembly, Hon. Uchenna Ugwu, praised Governor Peter Mbah’s leadership and pledged quick approval of the ₦971 billion budget.
He assured the governor that the assembly would expedite the process to maintain the state’s development momentum. In response, Governor Mbah reaffirmed his commitment to fostering inclusive prosperity and laying a foundation for long-term growth in Enugu.
President Bola Ahmed Tinubu will travel to France on Wednesday for a state visit at the invitation of French President Emmanuel Macron, according to the presidency.
A statement issued on Tuesday by Special Adviser to the President on Information and Strategy, Bayo Onanuga, disclosed that Tinubu will be officially received on Thursday at Les Invalides, the iconic French military museum, and the Élysée Palace for an elaborate welcome ceremony hosted by President Macron and his wife, Brigitte.
The visit, which spans three days, will prioritize discussions on strengthening ties in key sectors, including agriculture, security, education, health, youth engagement, innovation, and energy transition.
Onanuga described the visit as a strategic opportunity for Nigeria.
“The Nigerian leader’s three-day visit, which will focus on strengthening political, economic, and cultural relations and establishing more opportunities for partnership, particularly in agriculture, security, education, health, youth engagement and employment, innovation, and energy transition, promises significant benefits for Nigeria,” the statement read.
The two leaders will also hold high-level meetings aimed at fostering collaboration in finance, solid minerals, trade, and investment.
A France-Nigeria Business Council session will further explore private sector contributions to economic growth.
The First Ladies of both countries are set to discuss initiatives aimed at empowering women and vulnerable groups, with Brigitte Macron hosting Oluremi Tinubu for talks on the Nigerian First Lady’s Renewed Hope Initiative.
Tinubu and his wife will conclude the visit with a state dinner hosted by President Macron at the Élysée Palace.
The delegation will include senior Nigerian government officials, underscoring the significance of the bilateral engagements.
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