Dangote Refinery Drags Nigerian Govt to Court over Fuel Import Licences

Dangote Refinery Drags Nigerian Govt to Court over Fuel Import Licences

Dangote Petroleum Refinery has filed a fresh lawsuit against the Nigerian government, seeking to nullify recent fuel import licences issued to the Nigerian National Petroleum Company (NNPC) and other marketers.

The case filed against the Attorney General of the Federation at the Federal High Court in Lagos has reignited fresh tension in the downstream petroleum sector over fuel import.

The move comes one year after the company withdrew a similar case challenging import permits issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to petroleum marketers.

According to a Reuters report, Dangote Refinery argues that the import permits issued or renewed by the NMDPRA violate an earlier court order directing all parties involved to maintain the status quo on fuel imports.

The refinery’s legal team contends that under the Petroleum Industry Act (PIA), fuel importation is only legally permissible when domestic production falls short of meeting national demand. It added that its current output meets the country’s needs.

The company argues that blanket import authorisations significantly undermine its $20 billion facility’s operations just as it is ramping up capacity.

Previous Suit on Import Licence

Dangote had filed a similar lawsuit in 2025 against the NMDPRA, NNPC, and several marketers, seeking ₦100 billion in damages.

It later withdrew the case in July 2025, leaving questions about future competition and supply unresolved.

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Downstream Sector Transition

The dispute reflects the ongoing tension in Nigeria’s downstream oil sector as the country transitions from a long-time reliance on imports to local production.

The Shifting Supply Dynamics

Recent data released by the NMDPRA revealed that domestic refineries (led heavily by Dangote Refinery) supplied the majority of the fuel to the Nigerian market, as imports appear to be on the decline. The latest NMDPRA Factsheet shows that the domestic supply of petrol accounted for 91.7 percent of the market share in April 2026.

While Petrol imports into Nigeria dropped from 5.9 million litres per day in March to 3.7 million litres per day in April, supply by domestic refineries rose from 34.2 million litres per day in March to 40.7 million litres per day, making a total of 44.4 million litres per day.

Regulators and marketers have in the past defended the need for fuel imports, arguing that they are essential to ensure adequate supply and prevent shortages while local refineries ramp up production.

The NMDPRA reportedly issued fresh licences to six marketers for the importation of petrol, stressing that the move is a temporary intervention aimed at ensuring supply stability across the country.

This fresh litigation underscores a deep, ongoing struggle for ultimate market control over Africa’s largest energy consumer.

 

Victor Ezeja, a journalist, and scholar
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Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in Mass Communication. He can be reached via @VICTOREZEJA on X

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