A Nigeria High Court in Abuja, on March 18, 2025, dismissed a request by the Nigerian National Petroleum Company (NNPC) Limited to strike out a lawsuit filed by Dangote Petroleum Refinery and Petrochemicals.
In his ruling, Justice Inyang Ekwo held that NNPC had failed to file a counter-affidavit against Dangote Refinery’s suit and instead submitted a preliminary objection, which contradicted legal procedures.
He faulted NNPC for violating Order 16 of the Federal High Court rules by filing what he described as an “incompetent preliminary objection” against the refinery.
The judge further stated that NNPC would not suffer any miscarriage of justice if Dangote Refinery were allowed to amend its suit.
He, therefore, granted the refinery’s request to amend the case and correctly cite NNPCL’s name in the suit.
Background of the case
In January 2024, Dangote Refinery filed a lawsuit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and NNPCL, listed as the 1st and 2nd defendants, respectively.
The refinery accused both agencies of violating the Petroleum Industry Act (PIA) by granting fuel import licenses despite Dangote’s local production exceeding Nigeria’s daily consumption.
Other companies named in the suit include AYM Shafa, A.A. Rano, T. Time Petroleum, 2015 Petroleum, and Matrix Petroleum.
NNPC had argued that the court lacked jurisdiction and that Dangote Refinery had no legal standing to file the suit. It also contended that the case was premature and that NNPC was not a proper party to the matter.
The case, assigned to Justice Ekwo, was initially scheduled for a hearing on January 20, 2024. However, proceedings were delayed because Dangote Refinery had yet to serve its amended originating summons on the defendants.
The court ultimately found NNPC’s objections unsubstantiated and ruled that the case should proceed to a substantive hearing.
This decision allows Dangote Refinery to continue its legal challenge against the issuance of fuel import licenses to other companies.
The next hearing is set for April 15, 2025, when the court will address the substantive issues raised in the lawsuit.
Since the removal of fuel subsidies, Nigeria’s downstream oil market has seen a significant shift, with the country’s two major oil players—NNPCL and Dangote Refinery—engaged in a subtle price war to capture a larger share of the market.
The impact of this legal battle is reshaping competition and regulatory policies in the sector, especially as the six-month naira-for-crude deal naturally concludes by the end of March 2025.
