Fuel Import Dispute Between Dangote and Regulators Resurfaces

Dangote Petroleum Refinery has filed a fresh lawsuit against Nigeria’s attorney general in an attempt to challenge fuel import licences issued to fuel marketers and the Nigerian National Petroleum Company (NNPC), according to court documents seen by Reuters.

The case marks another escalation in tensions around fuel imports and competition in Nigeria’s downstream oil sector, almost a year after Dangote withdrew a previous lawsuit targeting similar import permits.

In the latest filing, the refinery is asking the Federal High Court in Lagos to nullify import licences issued or renewed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Dangote argues the approvals violate an earlier court directive to maintain the status quo while legal proceedings continue.

The refinery also argues that Nigeria’s petroleum laws only permit fuel imports when local supply is insufficient, claiming the latest licences undermine its operations as production ramps up at the refinery.

NMDPRA had not responded to requests for comment at the time of reporting. Regulators and fuel marketers have previously defended imports, arguing they remain necessary to prevent fuel shortages and maintain supply stability across the country.

Tensions Around Fuel Imports Continue

Dangote previously filed a similar lawsuit against the NNPC and several fuel traders before withdrawing the case in July 2025 without publicly explaining the decision.

The dispute highlights wider uncertainty around how Nigeria’s fuel market will operate as the Dangote refinery increases production. For years, Nigeria relied heavily on imported petrol because state-owned refineries consistently operated below capacity or remained offline.

The Dangote refinery, valued at around US$20 billion and capable of processing 650,000 barrels per day, was widely expected to reduce or eventually eliminate the country’s dependence on imported fuel.

However, imports have continued as the refinery gradually increases output and supply arrangements across the market continue adjusting.

Refinery Seen as Key to Nigeria’s Fuel Market Changes

The refinery remains one of Africa’s largest industrial projects and has become central to Nigeria’s plans to stabilise domestic fuel supply, reduce import costs, and strengthen refining capacity locally.

At the same time, the continued issuance of import licences has raised broader questions around competition, pricing, market control, and how quickly Nigeria can realistically transition away from imported fuel.

The latest court action now places those tensions back into focus as the country’s downstream petroleum sector continues adjusting to the presence of the Dangote refinery.