Dangote Refinery drags FG to court over petrol import licences

The Dangote Petroleum Refinery has taken the Federal Government to court over the issuance of fresh fuel import licences to oil marketing companies in the country.

Despite repeated objections from the refinery and growing domestic refining capacity, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, approved new fuel import licences for major petroleum marketers in 2026.

Industry data and regulatory documents showed that the licences granted to six marketers covered the importation of between 600,000 and 720,000 metric tonnes of Premium Motor Spirit, PMS, also known as petrol.

The refinery argued that the continued approval of petrol imports could undermine local refining efforts and negatively affect investments in domestic petroleum production.

The development comes amid ongoing debates over Nigeria’s fuel supply chain, import dependence, and the push to strengthen local refining capacity following the commencement of operations at the Dangote refinery.

The approved companies include NIPCO, AA Rano, Matrix Energy, Shafa Energy, Pinnacle Oil and Gas, and Bono Energy. According to reports, the allocations ranged from 60,000 metric tonnes to 150,000 metric tonnes per marketer.

The development marks a significant policy shift after the regulator earlier suspended the issuance of fresh petrol import permits in February and March 2026 on the grounds that local refining output had improved substantially.

Data released by the NMDPRA indicated that the Dangote refinery supplied about 36.5 million litres of petrol daily in February 2026, accounting for more than 90 per cent of domestic consumption, while imports fell to about three million litres daily, the lowest level recorded in one year.

However, in a new lawsuit filed before the Federal High Court in Lagos, the refinery challenged the issuance and renewal of fuel import licences by the NMDPRA, arguing that such approvals violate provisions of the Petroleum Industry Act, PIA, which permits imports only when domestic production is insufficient.

The refinery maintained that continued importation undermines local refining operations and discourages investments in domestic petroleum processing capacity.

Checks by Very Nigerian indicated that the issuance of import licences has divided the sector, with some stakeholders supporting the decision on the grounds of market competition and supply security, while others argued that unrestricted imports could weaken local refining investments and expose the country to renewed dependence on foreign fuel supplies.

In his latest interview with the Chief Executive Officer of Norway’s Sovereign Wealth Fund, Nicolai Tangen, monitored by Vanguard, Africa’s richest man and President of the Dangote Group, Aliko Dangote, alleged that some influential fuel importers were still bent on frustrating the progress of the refinery.

He said the “mafia” feared that the refinery would alter the trade flows that encouraged massive importation of refined petroleum products into Nigeria despite the country’s status as a major crude oil producer and exporter.

According to him, he was determined to end the prolonged fuel queues in Nigeria, noting that Nigerians sometimes spent hours and even days trying to buy fuel at filling stations.

He said the refinery project, launched in 2013, encountered many obstacles, some allegedly created by entrenched interests in the oil business.

He added that the cost of building critical infrastructure such as a port, heavy equipment facilities and a treated water plant was enormous.

Dangote stated that despite the challenges and discouragement, he pushed ahead with the project in order to strengthen Nigeria’s — and by extension Africa’s — energy security.

He said: “We looked at oil. Africa produces oil, but many countries don’t refine it. They export crude and import refined products, which drains foreign reserves.

“In Nigeria, we had fuel queues for more than 50 years. People queued for days during Christmas just to buy petrol in an oil-producing country. Government refineries were not functioning properly, so I decided to take the bold step of building a refinery.”

Providing more insight into the refinery project, he said: “We launched the project in 2013. Land acquisition alone delayed us for five years. Some of these obstacles were created by entrenched interests in the oil business — what you might call a mafia — trying to stop us from solving these problems. But we stayed focused.”

Dangote argued that some groups opposed the refinery because they benefitted immensely from Nigeria’s former fuel subsidy system.

According to him, Nigeria spent nearly $10 billion annually on subsidy payments, creating opportunities for traders, shippers and fuel importers to make huge profits from importing refined petroleum products into the country.

He also alleged that some individuals who received fuel import allocations earned billions of naira and viewed the refinery as a threat to their businesses.

“These are the people that are not agreeing for us to settle down because they believe that, no, we are coming here to displace them. Of course, that’s what we have done now,” he stated.

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