The Dangote Petroleum Refinery has taken legal action against the Federal Government over the approval of new fuel import licences issued to several oil marketing companies, escalating tensions within Nigeria’s downstream petroleum sector as debates intensify over local refining, fuel importation, and market control.
The refinery, owned by Africa’s richest businessman, Aliko Dangote, filed a suit before the Federal High Court in Lagos challenging the decision of the Nigerian Midstream and Downstream Petroleum Regulatory Authority to issue and renew petrol import permits despite the country’s growing domestic refining capacity.
The legal dispute follows the regulator’s recent approval of fresh fuel import licences to six major oil marketing companies in 2026, a move that has triggered strong criticism from stakeholders supporting local refining investments.
Industry reports and regulatory documents revealed that the licences covered the importation of between 600,000 metric tonnes and 720,000 metric tonnes of Premium Motor Spirit, popularly known as petrol.
The approved marketers include NIPCO, AA Rano, Matrix Energy, Shafa Energy, Pinnacle Oil and Gas, and Bono Energy.
Reports indicated that each company received allocations ranging from 60,000 metric tonnes to 150,000 metric tonnes for petrol importation.
The latest approvals represent a major policy reversal after the NMDPRA earlier suspended fresh fuel import permits in February and March 2026, citing significant improvements in local refining output and supply capacity.
Data released by the regulatory authority showed that the Dangote refinery was supplying approximately 36.5 million litres of petrol daily as of February 2026, accounting for more than 90 per cent of Nigeria’s estimated domestic fuel consumption.
The figures also indicated that petrol imports had declined sharply to about three million litres daily, the lowest level recorded within one year.
Despite the reduction in imports and increased domestic production, the regulator’s decision to resume import approvals has now sparked legal and industry-wide controversy.
In the lawsuit, the Dangote refinery argued that the issuance of fresh import licences contradicts provisions of the Petroleum Industry Act, which permits fuel importation only when local production remains insufficient to meet national demand.
The refinery maintained that continued importation undermines local refining operations, discourages investment in domestic petroleum processing, and threatens Nigeria’s long-term energy independence.
According to the refinery’s position, allowing unrestricted fuel imports despite substantial local production weakens the viability of domestic refineries and could expose the country to renewed dependence on imported petroleum products.
The development has sharply divided stakeholders within Nigeria’s oil and gas industry.
While some industry operators support the regulator’s decision on grounds of market competition, supply security, and price stability, others believe excessive fuel imports could damage local refining investments and reverse gains made toward achieving self-sufficiency in petroleum supply.
Supporters of domestic refining argue that Nigeria should prioritise local production after decades of dependence on imported fuel despite being one of Africa’s largest crude oil producers.
Meanwhile, Aliko Dangote has intensified criticism of groups he claims are working against the success of the refinery project.
Speaking during an interview with the Chief Executive Officer of Norway’s Sovereign Wealth Fund, Nicolai Tangen, monitored by Vanguard, Dangote alleged that powerful fuel importers and entrenched interests within the oil sector were deliberately attempting to frustrate the refinery’s operations.
According to him, certain individuals benefitted heavily from Nigeria’s long-standing fuel import system and feared that the refinery would fundamentally disrupt the existing business structure surrounding imported petroleum products.
Dangote claimed that the refinery threatened a decades-old system where Nigeria exported crude oil while importing refined products at enormous financial cost.
He explained that the refinery project was conceived to address the long-standing problem of fuel scarcity and endless queues at filling stations across Nigeria.
According to him, Nigerians had spent decades enduring severe hardship while trying to purchase petrol, with many motorists forced to queue for hours or even days despite the country’s vast crude oil reserves.
Dangote disclosed that the refinery project, which officially commenced in 2013, faced numerous obstacles from the beginning, including land acquisition delays, infrastructure challenges, and resistance from vested interests within the petroleum sector.
He explained that acquiring land for the project alone delayed implementation for about five years.
The businessman also revealed that enormous financial resources were invested in building critical infrastructure needed to support the refinery, including a seaport, heavy equipment facilities, and a treated water plant.
According to Dangote, despite repeated discouragement and resistance, he remained determined to complete the refinery because of its strategic importance to Nigeria and Africa’s energy security.
He argued that many African countries continue exporting crude oil only to spend scarce foreign exchange importing refined petroleum products, a situation he believes weakens economic development and drains national reserves.
Dangote further alleged that some individuals who profited massively from Nigeria’s former fuel subsidy regime viewed the refinery as a direct threat to their business interests.
According to him, Nigeria previously spent close to $10 billion annually on fuel subsidy payments, creating opportunities for traders, importers, and shipping operators to make enormous profits from petrol imports.
He maintained that some of those benefiting from the old system were unwilling to accept the growing influence of local refining.
Dangote stated that certain groups opposed the refinery because they feared losing control of the lucrative fuel import market that had dominated the sector for decades.
He stressed that despite the resistance, the refinery has already begun transforming Nigeria’s petroleum industry by reducing dependence on imported fuel and increasing domestic refining capacity.
The legal battle is expected to become one of the most significant disputes within Nigeria’s downstream petroleum sector in recent years, especially as the country continues efforts to balance market liberalisation, local refining growth, and energy security.
Industry observers believe the outcome of the case could shape the future direction of Nigeria’s fuel supply system, refinery investments, and petroleum import policies for years to come.
