Tank farm owners back Dangote in fuel import dispute, deepening rift

A widening division has emerged in Nigeria’s downstream petroleum sector as the Jetties and Petroleum Tank Farm Owners of Nigeria (JETFON) openly aligned with the Dangote Petroleum Refinery in its push to restrict petrol imports, setting up a fresh policy and legal battle over fuel supply and market structure.

In a statement signed by its Executive Secretary, Olayiwola Temitope, JETFON distanced itself from plans by the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) to challenge Dangote Refinery’s position in court. Instead, the group called for the immediate cancellation of all active petrol import licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The position marks a significant fracture among key private sector stakeholders in Nigeria’s deregulated fuel market, with tank farm owners now siding with domestic refining interests against import-dependent marketers.

The development follows a lawsuit filed by the Dangote Petroleum Refinery at the Federal High Court in Lagos, seeking to invalidate recent import licences granted to independent marketers and the Nigerian National Petroleum Company Limited (NNPCL) for large volumes of Premium Motor Spirit (PMS).

The refinery argues that the licences contradict provisions of the Petroleum Industry Act (PIA), which permits fuel imports only when local refining capacity is insufficient to meet national demand.

DAPPMAN, however, has defended the import licences, warning that restricting them could undermine investments in depot infrastructure and potentially create market dominance risks in favour of a single producer. The association maintains that a diversified supply base is necessary to ensure stability and consumer protection.

JETFON anchored its position on recent industry data from the NMDPRA, which indicates a significant shift in Nigeria’s fuel supply structure.

According to the April 2026 figures, domestic supply—largely driven by the Dangote Refinery—rose to approximately 40.7 million litres per day, while petrol imports declined sharply by 37.3% to 3.7 million litres per day, down from 5.9 million litres in March.

The association argues that these figures demonstrate that local refining capacity is now sufficient to meet national demand, making continued importation economically inefficient and a strain on foreign exchange reserves.

“Relying on foreign refined products exposes the economy to global supply shocks and sustained pressure on the naira,” JETFON stated, adding that prioritising domestic refining would strengthen energy security and support local industrial growth.

The disagreement highlights two contrasting approaches to Nigeria’s post-deregulation fuel economy: one favouring open import competition, and the other prioritising domestic refining consolidation.

JETFON and Dangote Refinery argue that restricting imports would stabilise the naira, reduce forex outflows, and stimulate local job creation. Import-dependent marketers, however, warn that aggressive import restrictions could distort competition and destabilise supply chains.

With both sides firmly entrenched, attention now shifts to the Federal High Court in Lagos and the NMDPRA, whose regulatory stance is expected to shape the future structure of Nigeria’s downstream petroleum sector.

Industry observers say the outcome could redefine the balance between domestic refining dominance and import-based competition in Africa’s largest oil market.