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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.

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and there are no adverse effects on any party involved,” Chiejina said, adding that the case would likely be formally withdrawn in January 2025.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

 

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Enugu Gov Presents ₦971bn 2025 Budget To State Assembly

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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.

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Tinubu, Wife To Embark On State Visit To France

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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.

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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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FIRS Chairman Advocates For Innovation To Boost Nigeria’s Economy

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The Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji, has emphasised the importance of innovation, transparency, and inclusivity in driving Nigeria’s economic growth.

Speaking at the 2nd Annual Lecture of NPO Reports in Abuja, Adedeji outlined key strategies for addressing the country’s economic challenges, focusing on revenue generation and infrastructure development.

He called for the adoption of efficient strategies to unlock Nigeria’s economic potential, including the improvement of tax administration and the establishment of clear frameworks for public-private partnerships (PPPs).

Adedeji further highlighted the role of digital solutions in enhancing transparency, reducing corruption, and increasing efficiency in both tax collection and infrastructure management.

“The government can unlock economic potential, foster innovation, and improve public services by adopting transparent, inclusive, and efficient strategies,” he said. “Collaborative efforts between the public and private sectors, supported by sustainable practices and innovative technologies, will pave the way for resilient and equitable growth.”

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Among his recommendations, Adedeji stressed the need to improve tax collection efficiency, reduce corruption, and ensure effective governance through capacity building for regulatory bodies. He also suggested focusing on high-impact infrastructure projects, such as the Lagos-Calabar highway, which integrates transportation, energy, and water supply.

Adedeji noted that the current administration’s Renewed Hope Agenda aims to generate revenue to improve infrastructure. He concluded by emphasizing that effective strategies are essential to sustain economic growth, improve public services, and enhance the living standards of Nigerians in an era of economic uncertainty.

The event, which addressed the complexities of revenue generation in a constrained economy, featured discussions on the government’s challenges in raising funds amidst the burden on citizens. The publisher of NPO Reports, Semiu Okanlawon, outlined the dilemma of taxing already-overburdened citizens while striving to improve their quality of life.

The lecture offered insights into the ways Nigeria can navigate its economic difficulties through innovative approaches and collaborative efforts between the public and private sectors.

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