Isaac Samuel
Fresh tensions are emerging in Nigeria’s downstream oil sector as Dangote Petroleum Refinery filed a fresh lawsuit challenging the continued importation of petrol into the country through licences issued to oil marketers and the Nigerian National Petroleum Company Limited (NNPCL).
Court documents showed that the refinery instituted the suit against the Attorney General of the Federation (AGF), seeking to overturn import permits granted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The legal dispute comes nearly one year after Dangote Refinery withdrew an earlier case in which it challenged the issuance of similar fuel import licences to the NNPCL and several fuel trading companies.
In the fresh suit before the Federal High Court in Lagos, the refinery asked the court to nullify import permits recently issued or renewed by the NMDPRA, arguing that the approvals violated an existing court order directing all parties to maintain the status quo pending the determination of the matter.
Fuel marketers and regulators have repeatedly defended the continued issuance of import licences, insisting that petrol imports remain necessary to guarantee adequate supply across the country and prevent shortages in the domestic market.
However, Dangote Refinery maintained in its court filing that the licences issued this month undermine its operations and contravene provisions of the law which, according to the company, only permit the importation of petroleum products when local production is unable to meet national demand.
The refinery had in July 2025 withdrawn a previous lawsuit challenging similar licences without publicly disclosing the reason for the withdrawal, leaving unresolved concerns over market competition and the future structure of Nigeria’s fuel supply chain.
Nigeria has historically depended on imported petrol due to the long-standing poor performance of state-owned refineries.
The $20 billion Dangote Refinery, with a refining capacity of 650,000 barrels of crude oil per day, was expected to significantly reduce or eliminate the country’s dependence on imported refined petroleum products.
Despite the commencement of operations at the facility, fuel importation has persisted, with industry players arguing that imported products are still required to bridge supply gaps as the refinery continues to ramp up output.
The latest court action is expected to intensify conversations around fuel market regulation, local refining capacity and the broader implementation of Nigeria’s petroleum laws, especially amid growing expectations that domestic refineries should increasingly meet the country’s fuel supply needs.
The dispute comes amid existing tensions in the oil sector over crude oil supply to the refinery.
Dangote Petroleum Refinery had accused Nigerian upstream oil producers of failing to supply crude oil to the facility as required under the Petroleum Industry Act (PIA), forcing the company to rely heavily on international traders who charge additional premiums.
In a statement issued by its management, the refinery said the development had significantly increased operational costs, even as it struggles to maintain stable fuel supply in Nigeria amid volatility in the global energy market.
“The high crude cost is compounded by the fact that Nigerian upstream producers have failed to supply crude oil to the refinery as required under the PIA, forcing us to source a substantial portion through international traders who charge an additional premium,” the company said.
The refinery added that crude procurement had become more expensive because Nigerian crude oil itself trades at a premium above global benchmark prices.
