Fuel marketers in Nigeria have pushed back against a lawsuit filed by the Dangote Petroleum Refinery seeking to invalidate fuel import licences, warning that the move could disrupt supply security and undermine competition in Africa’s largest oil market.
The legal challenge, filed last week by the refinery owned by billionaire Aliko Dangote, targets permits issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to fuel marketers and the state-owned Nigerian National Petroleum Company (NNPC) to import refined petroleum products.
Dangote argues that continued imports undermine the commercial viability of its $20 billion refinery, which began processing crude oil in 2024 and was designed to help Nigeria end decades of dependence on imported fuel despite being one of Africa’s top crude producers.
The refinery has repeatedly maintained that it has the capacity to meet domestic fuel demand and has called for tighter restrictions on imports.
But the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) said the import licences were essential legal instruments supporting the country’s fuel distribution network and supply chain stability.
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“These licences exist to protect supply, not to disadvantage any single producer,” DAPPMAN said in a statement on Sunday, insisting that the Petroleum Industry Act empowers regulators to issue import permits whenever necessary to guarantee energy security.
The association warned that cancelling existing licences could destabilise the downstream petroleum sector, where marketers and logistics firms have invested heavily in storage facilities, transportation infrastructure and distribution networks based on current regulatory approvals.
“We respect Dangote’s right to pursue legal remedies,” DAPPMAN said. “What we do not accept is that a private refinery’s commercial interests should override a regulator’s mandate.”
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The dispute highlights growing tensions within Nigeria’s downstream oil sector as the Dangote refinery seeks to establish dominance in the domestic fuel market.
The refinery, located in the Lekki Free Zone near Lagos, is considered one of Africa’s largest industrial projects and a major pillar of Nigeria’s energy reform ambitions. Authorities have promoted the facility as a solution to chronic fuel import dependence, foreign exchange pressures and recurring subsidy-related crises.
However, industry players say market realities, pricing disputes and supply concerns continue to complicate the transition away from imports.
DAPPMAN argued that maintaining an open and competitive market with multiple suppliers remained critical to preventing shortages and ensuring price stability.
The marketers’ association said it would consult legal advisers and engage with government authorities to defend the legality of the licences and preserve what it described as a competitive downstream market structure.
The latest legal battle also places renewed focus on the role of the NMDPRA and the implementation of Nigeria’s Petroleum Industry Act, which was introduced to liberalise and reform the country’s oil and gas sector.
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Analysts say the outcome of the dispute could shape the future structure of Nigeria’s fuel market, particularly the balance between local refining capacity and imported products.
Despite the launch of the Dangote refinery, Nigeria continues to import significant volumes of refined fuel products as distribution patterns and pricing mechanisms adjust to the new market landscape.
