The Federal High Court in Abuja has dismissed the ₦100 billion suit filed by Dangote Petroleum Refinery and Petrochemicals FZE against the Nigerian National Petroleum Company Limited (NNPCL) and others over an oil import licence dispute.
Justice Mohammed Umar gave the ruling on Wednesday after counsel for Dangote, Mr. C. O. Adegbe, formally withdrew the case.
The judge acted on an oral application by defence lawyers, who urged the court to dismiss the matter instead of striking it out.
The suit was initially before Justice Inyang Ekwo but was reassigned to Justice Umar, who began hearing it afresh.
Parties in the Case
Dangote Refinery had sued the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the NNPCL as the first and second defendants.
It also joined AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited as third to seventh defendants.
Through its previous counsel, Mr. Ogwu Onoja (SAN), the refinery sought an order nullifying import licences issued by NMDPRA to NNPCL and the other five oil companies.
The refinery also demanded ₦100 billion in damages against NMDPRA for allegedly violating the Petroleum Industry Act (PIA).
Plaintiff Seeks to Withdraw Case
At the resumed hearing, Adegbe informed the court that the plaintiff had filed a notice of discontinuance dated July 28, 2024.
He then urged the court to strike out the case.
However, counsel to NMDPRA, Mr. I. B. Ahmad, did not oppose the withdrawal but asked the court to dismiss the suit entirely, arguing that the case had already reached an advanced stage and that issues had been joined between the parties.
Defence Lawyers Push for Dismissal
Counsel for AYM Shafa, A. A. Rano, and Matrix Petroleum, Mr. Chris Ekemezie, supported Ahmad’s submission.
He referred to appellate court precedents which held that once pleadings have been exchanged, a case should be dismissed rather than struck out.
“It appears the plaintiff wants to ‘panel-beat’ its case and return after realising its weakness. We urge my lord to dismiss it with substantive cost,” Ekemezie said.
Counsel for T. Time Petroleum Limited and 2015 Petroleum Limited, Mr. Mofesomo Tayo-Oyetibo (SAN), also supported the defence’s position but did not oppose the withdrawal.
Adegbe, however, insisted that the case should be struck out, saying the withdrawal was based on earlier discussions among the parties.
Judge Rules for Dismissal
In his ruling, Justice Umar held that dismissal was the appropriate order in the circumstances.
“The record shows that issues have been joined and parties were to adopt their processes when the plaintiff sought to withdraw.
“The matter is therefore deemed fit for dismissal. Since no cost was asked for, it is hereby dismissed without cost,” the judge ruled.
Dangote Refinery had alleged that the NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing import licences for refined petroleum products without evidence of domestic shortfall.
The refinery maintained that such licences should only be granted when local production cannot meet national demand.
In its preliminary objection, NNPCL argued that the suit was incompetent and disclosed no cause of action.
It further stated that the plaintiff sued a non-existent entity, “Nigeria National Petroleum Corporation Limited,” which is not registered with the Corporate Affairs Commission (CAC).
Regulators Defend Import Licences
In its counter affidavit, NMDPRA said that Dangote Refinery had not yet met Nigeria’s daily fuel needs.
It stated that issuing import licences to other companies was necessary to bridge the supply gap and to promote fair competition.
READ ALSO: NNPCL Targets 2 million bpd by 2027, Eyes 20% Stake in Dangote Refinery
The agency also maintained that it acted within its statutory duty to prevent monopoly in the downstream petroleum sector.
The oil marketers also filed a joint counter affidavit warning that granting Dangote’s request would amount to creating a monopoly in the petroleum sector and could negatively affect the economy.
Earlier Rulings in the Case
In March 2024, Justice Inyang Ekwo had dismissed NNPCL’s preliminary objection, describing it as incompetent. He ruled that NNPCL should have filed a defence before questioning the court’s jurisdiction.
Justice Ekwo also rejected a joinder application by the Federal Competition and Consumer Protection Commission (FCCPC), describing the agency as a “meddlesome interloper.”
Case Closed Without Cost
With the court’s latest ruling, the ₦100 billion suit filed by Dangote Refinery has been dismissed without cost, bringing the legal battle over oil import licences to an end.
Rafiyat Sadiq is a political, justice, and human rights reporter with Pinnacle Daily, known for fearless reporting and impactful storytelling. At Pinnacle Daily, she brings clarity and depth to issues shaping governance, democracy, and the protection of citizens’ rights.
