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Dangote Group To Withdraw ₦100bn Lawsuit Against NMDPRA Amid Ongoing Talks

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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.

Read Also: Shettima Represents Tinubu At CHOGM 2024

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and there are no adverse effects on any party involved,” Chiejina said, adding that the case would likely be formally withdrawn in January 2025.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.

 

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JUST IN: Presidency Rejects Makinde’s Claim of ₦250bn NLNG Dividends for Each State

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The Presidency has rejected Oyo State Governor Seyi Makinde’s claim that the Federal Government is withholding ₦250 billion in Nigeria LNG Limited (NLNG) dividends for each state, describing the allegation as false and inconsistent with the company’s historical dividend payments.

The rebuttal was contained in a statement issued on Sunday by Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy.

Makinde had alleged that the Federal Government would not release the funds until after the 2027 general elections, despite states having identified development projects for which the money was expected.

ALSO READ: “Makinde Never Owed Salary Despite FAAC Changes” — APM Chieftain Adelore

The governor made the claim on Friday at the 2027 Budget Stakeholders’ Consultative Engagement held at Olola Ogunlana Hall, International Conference Centre, University of Ibadan.

“Each state was supposed to get ₦250 billion. We had already identified projects that would expand Oyo State’s economy. But they have now said the money will not be paid until after the election. Is the election more important than the people of Nigeria?” Makinde said.

However, the Presidency disputed the governor’s figures, arguing that the amount he cited would require an exceptionally large dividend payment from NLNG.

“Makinde’s latest claim that the Federal Government is withholding the NLNG dividend windfall is false and should be disregarded,” Onanuga stated.

According to the presidential aide, paying ₦250 billion to each of Nigeria’s 36 states would amount to ₦9 trillion, excluding the Federal Government, the Federal Capital Territory and the 774 local government councils.

He explained that under the Federation Account Allocation Committee (FAAC) revenue-sharing formula, states receive 26.72 per cent of distributable Federation Account revenue.

Onanuga said NLNG would have to pay more than ₦33.68 trillion, equivalent to approximately $25 billion, into the Federation Account in a single declaration for the states’ share alone to reach ₦9 trillion.

“NLNG has never paid $25 billion in dividends to the Federation Account in a single payout,” he said.

The Presidency also stated that NLNG had paid approximately $21.5 billion in dividends to the Federation over the past 25 years, with less than $3 billion realised since Tinubu assumed office.

Onanuga argued that these figures contradicted the allegation that a single dividend payment exceeding the company’s total historical distribution to the Federation was being withheld.

“Therefore, any claim that a single payout exceeds the company’s entire lifetime distribution to the Federation—and is being withheld—defies basic logic and economic reality,” he stated.

The presidential aide further criticised Makinde’s public statements, accusing the governor of making misleading claims since embarking on his presidential ambition ahead of the 2027 elections.

“We expect Governor Makinde to be more measured in his public conduct and utterances,” Onanuga said.

He also recalled Makinde’s previous description of the substantial financial allocations from the Federation Account to states, including Oyo, as “voodoo.”

While acknowledging that Makinde was free under Nigerian law to pursue his presidential ambition, Onanuga urged him to avoid what the Presidency described as false claims and disinformation.

“Under Nigerian law, Governor Makinde is free to pursue his presidential ambition. He should desist from making falsehoods and disinformation the hallmarks of his campaign,” he stated.

The Presidency urged Nigerians to disregard the governor’s allegation, arguing that it could mislead citizens and create unnecessary hostility towards the Federal Government.

“We urge the public to disregard these unfounded claims, which serve only to mislead citizens and stoke needless disaffection against the Federal authorities,” Onanuga added.

 

 

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Sowore Challenges Okonjo-Iweala to Name Those Behind Alleged $2.4bn Subsidy Fraud

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Okonjo-Iweala Narrates Encounter With Ruthless Fuel Subsidy Cabal

The 2027 presidential candidate of the African Action Congress (AAC), Omoyele Sowore, has challenged the Director-General of the World Trade Organisation (WTO), Ngozi Okonjo-Iweala, to identify the individuals and companies allegedly involved in the $2.4 billion oil subsidy fraud she said she uncovered while serving as Nigeria’s Minister of Finance.

Sowore made the demand in a statement posted on X on Sunday, questioning the evidence supporting the alleged fraud and its reported connection to the kidnapping of Okonjo-Iweala’s mother in 2012.

SEE ALSO: 2027: No New Taxes Under My Gov’t If Elected – Sowore Clarifies

His response followed reports of an interview in which Okonjo-Iweala recounted how her efforts to uncover an alleged $2.4 billion fuel subsidy fraud led to threats against her and the abduction of her mother, Kamene Okonjo.

The initial report, published by Nigerian media outlets on Saturday and Sunday, October 17 and 18, followed Okonjo-Iweala’s account of the incident and her experience fighting corruption while serving in government.

In his response, Sowore questioned the identities of those allegedly responsible for the fraud and the availability of documentary evidence supporting the claims.

“During her two terms at the center of Nigeria’s economic management, who exactly did she discover was responsible for this multibillion-dollar subsidy fraud?” he asked.

He also demanded details of the companies and individuals allegedly implicated, as well as the findings of investigations into the matter.

“Which companies and individuals were implicated? Where are the audit findings, investigation reports and records of prosecution?” Sowore queried.

The AAC presidential candidate also criticised Okonjo-Iweala’s book, Fighting Corruption Is Dangerous, in which she recounted the kidnapping and linked it to her anti-corruption efforts.

Sowore argued that the book did not provide evidence identifying those responsible for the alleged fraud or explaining what happened to the money.

He further questioned the evidence connecting the alleged subsidy fraud investigation to the kidnapping of Okonjo-Iweala’s mother.

According to Sowore, police records, prosecution records and judicial findings concerning the kidnapping pointed to the alleged involvement of palace guards, relatives and domestic workers.

He maintained that the circumstances surrounding the incident should be examined using verifiable evidence, rather than accepting or dismissing competing accounts without proper scrutiny.

Sowore also questioned why, according to his understanding, Okonjo-Iweala had not publicly challenged the police’s account of the kidnapping or demanded a fresh, independent investigation.

He criticised Bloomberg Television journalist Francine Lacqua over her handling of Okonjo-Iweala’s account, arguing that further verification was necessary.

Returning to the central issue, Sowore asked: “Who stole the alleged $2.4 billion?”

He also demanded to know where the audit findings were, which companies and individuals were implicated, what became of the investigations and what evidence established a direct connection between the alleged fraud and the kidnapping.

 

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Tinubu vs Obi: Omokri Fires Back at Peter Okoye Over Call to Retire Older Politicians

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Former presidential aide Reno Omokri has criticised Afrobeats singer Peter Okoye over his call for Nigerians to retire older politicians and support former Anambra State Governor Peter Obi.

Okoye, popularly known as Mr P, made the remarks in a video that went viral on social media, urging Nigerians to move away from older politicians and support Obi.

“Let’s leave these old guys, dem done try. Let’s retire them,” Okoye said in the video, according to Omokri’s account.

SEE MORE: Reno Omokri Praises Tinubu’s Independence Day Address, Says Nigeria Is in ‘Sound Hands’

Reacting to the singer’s position in a post on Sunday, Omokri argued that age alone should not determine Nigerians’ choice of presidential candidates, insisting that a comparison of the ages of the leading presidential tickets does not support Okoye’s argument.

Omokri noted that Obi is 65 years old, while his proposed running mate, Rabiu Musa Kwankwaso, is 70. He put President Bola Tinubu’s age at 74 and Vice President Kashim Shettima’s at 60.

According to Omokri, the Obi-Kwankwaso ticket has a combined age of 135 years, compared with 134 years for the Tinubu-Shettima ticket.

He argued that, based on the average ages of the two tickets, the incumbent president and his deputy are marginally younger as a pair.

Omokri also compared the figures with those of Atiku Abubakar and Rotimi Amaechi, whose combined ages he put at 140 years.

Beyond the age argument, Omokri questioned Obi’s record as Anambra governor, contrasting it with Tinubu’s administration in Lagos State.

He listed schools and independent power projects he attributed to Tinubu’s tenure as Lagos governor, challenging Okoye to identify comparable projects initiated, completed and commissioned with government funds during Obi’s time in office.

Omokri further argued that Nigerians should consider candidates’ records in public office rather than relying primarily on their ages.

He also defended the Tinubu administration by citing the absence of a nationwide strike by the Academic Staff Union of Universities (ASUU) during its tenure and the federal government’s Nigerian Education Loan Fund (NELFUND) programme.

 

 

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