Nigeria gripped by legal battle over fuel imports
Nigeria’s leading fuel marketers have pushed back against a lawsuit by Dangote Petroleum Refinery seeking to annul fuel import licenses, warning the legal action could destabilize supply and competition in the country’s downstream sector.
Last week, Dangote filed a lawsuit in the Federal High Court in Lagos against the government, aiming to nullify import licenses issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to independent marketers and the state-owned Nigerian National Petroleum Company (NNPC).
Dangote argues that the permits undermine its operations and violate the Petroleum Industry Act by allowing imports despite its refining capacity.
In response, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) said the licenses are legal instruments essential to the West African nation’s fuel supply chain.
“These licenses exist to protect supply security, not to disadvantage any single producer,” the association said in a statement on Sunday. Invalidating the permits retroactively could introduce “uncertainty into the entire downstream supply chain at a moment when Nigeria can least afford it,” it added.
“Nigeria’s fuel market is not a monopoly waiting to happen. It is a competitive, multi-participant market that has taken years to build,” DAPPMAN said, adding that it will engage legal counsel, coordinate with affected member companies, and make formal representations to the relevant authorities.
Africa’s most populous country remains heavily dependent on imported refined petroleum despite being a major crude producer. Earlier court actions by Dangote, including a September 2024 lawsuit challenging similar import permits, were withdrawn last year, leaving unresolved tensions in the sector.
The refinery, Africa’s largest with a 650,000-barrel-per-day capacity, was inaugurated in May 2023 and began commercial operations in 2024. It has been central to the Nigerian government’s efforts to boost domestic refining and reduce import reliance.
Last month, its owner, Aliko Dangote, said the plant has been ramping up fuel and fertilizer exports to other African markets as supply disruptions linked to the US-Israeli conflict with Iran tighten availability and drive up import costs across the continent.
