The Dangote Petroleum Refinery has filed a lawsuit against the Federal Government, challenging the issuance of fresh fuel import licences to oil marketing companies despite rising domestic refining capacity.
The licences were granted in 2026 by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to six major marketers—NIPCO, AA Rano, Matrix Energy, Shafa Energy, Pinnacle Oil and Gas, and Bono Energy—for the importation of Premium Motor Spirit (PMS), commonly known as petrol.
Industry data shows that the approvals covered between 600,000 and 720,000 metric tonnes of petrol, with individual allocations ranging from 60,000 to 150,000 metric tonnes per company.
The move represents a shift in policy after the regulator had earlier suspended the issuance of new import permits in February and March 2026, citing improved output from local refineries.
Data from NMDPRA indicated that the Dangote refinery supplied about 36.5 million litres of petrol daily in February 2026—accounting for over 90 per cent of domestic consumption—while imports dropped to roughly three million litres per day, the lowest level recorded within a year.
In its suit before the Federal High Court in Lagos, the refinery argued that the continued issuance and renewal of import licences contravene provisions of the Petroleum Industry Act (PIA), which allows fuel imports only when local production is insufficient.
The company maintained that ongoing importation undermines domestic refining operations and discourages investment in Nigeria’s petroleum processing sector.
The development has sparked division within the industry, with some stakeholders supporting the regulator’s decision on the grounds of ensuring competition and supply security, while others warn that sustained imports could weaken local refining capacity and increase reliance on foreign fuel.
Meanwhile, President of the Dangote Group, Aliko Dangote, has alleged that powerful interests within the fuel importation chain are working against the refinery’s success.
Speaking in an interview with Nicolai Tangen, CEO of Norway’s sovereign wealth fund, Dangote claimed that a “mafia” benefiting from fuel imports and the former subsidy regime is resisting the refinery’s impact on the market.
He said the refinery aims to end decades of fuel scarcity in Nigeria, where motorists have historically spent hours or days queuing for petrol despite the country’s status as a major crude oil producer.
Dangote noted that the project, launched in 2013, faced numerous challenges, including delays in land acquisition and resistance from entrenched industry players.
He added that the high cost of building critical infrastructure—such as a dedicated port, heavy equipment facilities and a water treatment plant—further complicated the project.
Despite these hurdles, he said the refinery was built to strengthen Nigeria’s energy security and reduce dependence on imported refined products.
Dangote also argued that the former fuel subsidy regime, which reportedly cost Nigeria about $10 billion annually, created incentives for importers, traders and shippers to profit from bringing refined petroleum products into the country.
According to him, some beneficiaries of the system now view the refinery as a threat to their businesses and are opposed to its full operation.
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