The Dangote Petroleum Refinery has formally withdrawn its N100 billion lawsuit challenging the issuance of fuel import licenses to competitors, including the Nigerian National Petroleum Company Limited (NNPCL), signaling a strategic retreat from a legal battle that had drawn scrutiny from regulators, oil marketers, and economic observers.
In a notice of discontinuance filed on July 28, 2025, by its legal counsel, George Ibrahim, SAN, Dangote Refinery notified the Federal High Court in Abuja that it would no longer pursue the suit marked FHC/ABJ/CS/1324/2024. The refinery stated: “TAKE NOTICE that the Plaintiff (Dangote Refinery) herein discontinues this Suit against the Defendants forthwith.”
The decision to withdraw the lawsuit follows months of intense legal maneuvering and regulatory interventions. The original suit sought to void fuel import licenses granted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to several Nigerian oil companies, including NNPCL, Matrix Petroleum Services Limited, A.A. Rano Limited, and four others.
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This development comes against the backdrop of fresh calls by Africa’s richest man, Aliko Dangote, urging President Bola Tinubu to include refined petroleum products on the list of items banned under the Federal Government’s ‘Nigeria First’ policy—a protectionist policy aimed at reducing imports in favor of local production.
Dangote’s latest request reignited concerns that the billionaire industrialist is seeking to entrench a monopoly in Nigeria’s deregulated downstream oil sector. Industry stakeholders say that if such a ban were enforced, it would effectively block competition, leaving Dangote as the sole supplier of refined fuel in Africa’s most populous country.
It is also noted that the move contradicts the spirit of the Petroleum Industry Act (PIA), which liberalized the petroleum sector and allows for a free-market system where multiple players can import, produce, and sell petroleum products. Section 317(8) and (9) of the PIA explicitly permit the issuance of licenses to qualified entities for such activities, underscoring the law’s objective to promote competition, not restrict it.
FCCPC’s Rejected Intervention
Earlier in the case, the Federal Competition and Consumer Protection Commission (FCCPC) had tried to join the lawsuit, raising alarms that Dangote’s legal push could result in anti-competitive outcomes and a dominant market position. But Justice Inyang Ekwo of the Federal High Court dismissed the FCCPC’s joinder application in March 2025, ruling that the commission had failed to prove its relevance to the case, which revolved around regulatory powers under the PIA, not competition enforcement.
Dangote’s lawyer had strongly opposed the FCCPC’s involvement, arguing that the refinery was lawfully licensed under the PIA and that its case was aimed at correcting regulatory breaches by the NMDPRA. He branded the FCCPC a “meddlesome interloper,” insisting that it lacked the authority to intervene in matters strictly governed by petroleum law.
However, the refinery has now chosen to walk away from the case altogether. When the matter comes up on the next adjourned date, September 29, 2025, Dangote’s legal team is expected to make a formal oral application for withdrawal, in accordance with court rules. The presiding judge, Justice Mohammed Umar, is expected to deliver a final pronouncement on the matter.
A Pattern of Monopoly?
The move to discontinue the lawsuit doesn’t erase the wider perception that Dangote is angling to consolidate control across multiple sectors. The businessman has previously faced accusations of monopolistic behavior in the cement industry, where his company holds a dominant market share, often benefiting from policy decisions that restrict competition or favor local production.
Similar accusations have now surfaced in the oil and gas sector. In 2024, Dangote accused rival importers of flooding the Nigerian market with substandard fuels—a claim that led to heightened regulatory pressure on private marketers. By mid-2025, NNPCL had withdrawn as the intermediary between Dangote Refinery and other marketers, following a federal directive that allowed direct purchase of products from the refinery.
While Dangote maintains that his refinery is capable of meeting Nigeria’s daily consumption demands, critics warn that turning off the tap for other importers would increase prices, reduce supply chain flexibility, and put the entire country at the mercy of a single supplier.
Legal experts say the court will still need to rule on the oral application for discontinuance. However, with the written notice already in place, the case is essentially over—unless revived under a different framework.
Still, the broader conversation about monopoly, regulation, and market fairness is far from settled. Dangote’s influence on policy and his aggressive posture in defending market turf are now drawing increasing scrutiny—not just from competitors, but also from economists and civil society advocates who fear that a monopoly on refined fuel in Nigeria would roll back the gains of deregulation.
With Nigeria’s energy security and the credibility of its free market reforms hanging in the balance, the government now faces a critical test of its commitment to competition, transparency, and equitable access in one of the country’s most vital sectors.