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Dangote Refinery Takes Federal Government To Court Over Fuel Import Licences
LAGOS — Fresh tensions have emerged in Nigeria’s downstream petroleum sector as Dangote Petroleum Refinery filed a lawsuit challenging the continued issuance of fuel import licences to oil marketers and the Nigerian National Petroleum Company Limited (NNPCL).
The refinery is seeking a court order to overturn import permits granted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), arguing that the approvals violate provisions of Nigeria’s petroleum laws and undermine local refining operations.
Court documents reportedly filed before the Federal High Court in Lagos named the Attorney-General of the Federation as a defendant in the matter.
According to the refinery, the import licences were issued despite an existing court directive ordering parties to maintain the status quo pending the determination of the dispute.
Dangote Refinery argued that petroleum products should only be imported when local production cannot meet domestic demand, insisting that continued importation threatens the viability of its multi-billion-dollar facility.
The dispute comes nearly a year after the refinery withdrew an earlier lawsuit that similarly challenged fuel import permits issued to NNPCL and several petroleum marketers.
Industry regulators and fuel marketers, however, have defended the continued importation of petrol, saying imports remain necessary to prevent shortages and ensure steady nationwide supply while local refining capacity continues to expand.
Nigeria has for decades depended heavily on imported refined petroleum products due to the poor performance of state-owned refineries. The Dangote Refinery, valued at approximately $20 billion and designed to process 650,000 barrels of crude oil daily, was expected to significantly reduce the country’s dependence on imported fuel.
Despite the commencement of operations at the refinery, petrol imports have continued, with market operators maintaining that supply gaps still exist.
The latest legal action is expected to intensify debates over fuel market regulation, competition, and the implementation of the Petroleum Industry Act (PIA).
The refinery had also recently accused Nigerian upstream oil producers of failing to supply adequate crude oil to the facility, forcing it to rely on international traders at higher costs.
Analysts say the outcome of the court case could shape the future structure of Nigeria’s downstream oil market and determine the balance between local refining and fuel importation in the coming years.