Dangote Refinery sues FG over petrol import licences in downstream market showdown

A major dispute over Nigeria’s downstream petroleum sector escalated sharply on Friday, May 15, 2026, as the Dangote Petroleum Refinery filed a lawsuit against the Federal Government seeking to invalidate recent fuel import licences issued to the Nigerian National Petroleum Company Limited (NNPC Ltd) and several independent marketers.

The case, filed at the Federal High Court in Lagos and assigned to Justice Chukwujekwu Aneke, also names the Attorney General of the Federation and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) as defendants. The refinery is asking the court to nullify permits granted to six major oil marketing companies, which it says were approved to import hundreds of thousands of metric tonnes of petrol into the country.

The legal action represents a significant escalation in the long-running tension between the $20 billion Lekki-based refinery and petroleum marketers over control of Nigeria’s fuel supply chain, amid ongoing efforts to reform the downstream sector under the Petroleum Industry Act (PIA).

In its filings, the refinery argues that the import licences were issued in violation of a Federal High Court order delivered on April 29, 2026, which directed all parties to maintain the status quo pending further legal determination. It further contends that under the Petroleum Industry Act, import permits should only be issued when local refining capacity is insufficient to meet national demand.

According to the suit, the continued issuance of import licences undermines domestic refining operations and threatens the viability of large-scale investments in Nigeria’s energy sector.

The NMDPRA, however, had recently approved import allocations for major marketers including NIPCO, A.A. Rano, Matrix, Shafa, Pinnacle, and Bono, covering an estimated 720,000 metric tonnes of Premium Motor Spirit (PMS).

The dispute comes at a time when official data suggests a significant shift in Nigeria’s fuel supply structure. Figures from regulatory authorities show that petrol imports fell by more than 60% in the first quarter of 2026 compared to the same period in 2025, while domestic refining output increased sharply.

Industry data also indicates that the Dangote Refinery, which is ramping up operations toward its full capacity of 661,000 barrels per day, has become a dominant supplier in the domestic market, accounting for a substantial share of Nigeria’s petrol consumption in recent months.

Despite this, petroleum marketers maintain that continued fuel imports are necessary to ensure price stability and prevent supply disruptions, warning that overreliance on a single domestic refinery could expose the market to risks in the event of operational downtime.

The legal battle follows an earlier dispute in 2025 when Dangote briefly pursued a similar case against the government and oil traders before withdrawing it after federal mediation. Tensions resurfaced after regulators lifted a temporary suspension on fuel import permits earlier in 2026, citing the need to maintain competition and safeguard energy security.

In a recent public statement, Aliko Dangote accused entrenched interests in the oil import business of resisting reforms in the sector, describing them as groups seeking to preserve long-standing profit structures under the old import-dependent system.

With the case now before the court, the dispute raises fundamental questions about Nigeria’s downstream petroleum future—balancing domestic refining ambitions against the principles of open market competition and supply security.

The outcome of the case is expected to have far-reaching implications for fuel pricing, import policy, and the structure of Nigeria’s oil distribution system as the country continues its transition toward increased local refining capacity.