Dangote Refinery drags NNPC, Marketers to Court over Fuel Imports

Dangote Refinery has reopened its legal battle against fuel importation in Nigeria, filing a fresh suit seeking the cancellation of petrol import licences issued to the Nigerian National Petroleum Company Limited and several oil marketers.

Court filings before the Federal High Court in Lagos showed that the refinery is challenging the continued approval of fuel import permits by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, despite growing domestic refining output.

The latest court action comes at a time when Nigeria’s reliance on imported petrol is falling sharply following increased production from local refineries, particularly the Dangote facility.

According to recent industry figures released by the NMDPRA, local refineries supplied about 3.18 billion litres of petrol in the first quarter of 2026, while imports declined significantly during the same period.

Dangote Refinery argued that the issuance and renewal of import licences violate an earlier court directive ordering all parties to maintain the status quo pending determination of the dispute.

The company further contended that Nigerian law only permits fuel importation when local production is unable to meet national demand, insisting that the continued approvals threaten the commercial viability of its operations as production ramps up.

The refinery’s management believes Nigeria’s growing refining capacity should reduce dependence on imported petroleum products and strengthen domestic supply chains.

Oil marketers, however, have consistently defended fuel importation, maintaining that imports remain necessary to guarantee adequate nationwide supply and prevent shortages.

The dispute marks another chapter in the ongoing battle between Dangote Refinery and fuel importers over control of Nigeria’s downstream petroleum market.

In 2025, the refinery instituted a similar lawsuit against the NMDPRA, NNPC Ltd and several marketers including AYM Shafa Ltd, A.A. Rano Ltd, T. Time Petroleum Ltd, 2015 Petroleum Ltd and Matrix Petroleum Services Ltd, seeking to nullify import permits granted to the firms.

That earlier suit also included a N100 billion damages claim, although Dangote Refinery later withdrew the case without proceeding to trial.

Nigeria has for decades relied heavily on imported petrol due to the poor performance of state-owned refineries. But the commencement of operations at the multi-billion-dollar Dangote Refinery has significantly altered the country’s fuel supply structure.

Industry data indicate that petrol imports dropped to about 965.52 million litres in the first quarter of 2026, compared to roughly 2.43 billion litres recorded during the same period in 2025, representing a decline of more than 60 per cent.

Meanwhile, supply from domestic refineries rose from 1.996 billion litres to 3.179 billion litres within the same period, increasing the share of locally refined petrol in Nigeria’s total fuel supply to about 76.7 per cent.

President of the Dangote Group, Aliko Dangote, has repeatedly maintained that the refinery has the capacity to meet Nigeria’s fuel demand while also supplying refined products to other African countries.

Dangote recently disclosed that the refinery exported 17 cargoes of refined petroleum products to various African markets in March alone, underlining its growing influence within the regional energy sector.

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