Dangote files fresh lawsuit against Nigerian govt over fuel import licences

The legal action signals renewed friction in Nigeria’s downstream oil sector, nearly a year after the refinery withdrew an earlier suit challenging similar import permits

Dangote Petroleum Refinery has filed a fresh lawsuit against Nigeria’s Attorney-General, seeking to overturn fuel import licences granted to oil marketers and the Nigerian National Petroleum Company (NNPC) Limited.

The legal action signals renewed friction in Nigeria’s downstream oil sector, nearly a year after the refinery withdrew an earlier suit challenging similar import permits issued to the state oil company and several fuel traders.

According to a Reuters report, the new filing before the Federal High Court in Lagos asks the court to nullify import licences issued or renewed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Dangote argued that the approvals violate an earlier court order directing all parties to maintain the status quo.

A request for clarification on the fresh suit sent to the Group Chief Branding and Communications Officer of Dangote Group, Anthony Chiejina, has not been responded to as of the time this report was filed.

In the suit, the refinery contended that licences granted to some marketers this month threaten its operations and run contrary to provisions of the law, which it said only permit fuel imports when domestic supply is insufficient to meet national demand.

The NMDPRA has yet to issue an official statement on the matter. However, an official in its public affairs department, who asked not to be named because they were not authorised to speak on the issue, told PREMIUM TIMES on Saturday that the agency was not aware of the suit.

Regulators and fuel marketers have consistently defended continued imports, arguing that they remain necessary to ensure nationwide supply and prevent shortages, especially as local refining capacity gradually improves.

Background

Since commencing operations in 2024, Dangote Refinery has repeatedly pushed for local marketers to source petroleum products primarily from domestic refineries rather than continue importing refined fuel.

However, the former NMDPRA leadership under Farouk Ahmed consistently resisted any move perceived as creating a monopoly, insisting that allowing a single refinery to dominate supply would undermine competition and threaten Nigeria’s long-term energy security.

That disagreement led to a feud between Aliko Dangote and Mr Ahmed.

Mr Dangote later accused Mr Ahmed of corruption and alleged that the regulator was colluding with international traders and fuel importers to frustrate local refining by continuing to issue import licences.

He also alleged that Mr Ahmed was living beyond his legitimate means, claiming that four of his children were enrolled in expensive secondary schools in Switzerland, raising concerns over possible abuse of office and regulatory integrity.

Mr Ahmed later resigned following the controversy.

Previous lawsuit

In 2024, Dangote Refinery, in suit number FHC/ABJ/CS/1324/2024, asked the court to award N100 billion in damages against the NMDPRA for issuing import licences to some marketers and permitting the importation of petroleum products.

The marketers listed in the suit were NNPC Ltd, Matrix Petroleum Services Limited, AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, and 2015 Petroleum Limited.

In the suit dated 6 September 2024, the plaintiff’s lawyer, Ogwu Onoja, asked the court to declare that the NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licences for the importation of petroleum products.

Dangote Refinery argued that such licences should only be issued when a petroleum product shortfall exists.

The refinery also asked the court to declare that the NMDPRA failed in its statutory responsibility under the PIA by not encouraging local refineries such as Dangote Refinery.

However, in a counter-affidavit marked FHC/ABJ/CS/1324/2024 dated 5 November 2024 and filed by Ahmed Raji (SAN), the marketers asked the court to dismiss Dangote Refinery’s claims, insisting that competitive practices are essential to Nigeria’s economic health and the viability of the oil sector.

They argued that they were fully qualified to receive import licences from the NMDPRA under Section 317(9) of the PIA.

The defendants further alleged that the plaintiff was attempting to monopolise Nigeria’s petroleum industry by seeking sole control of supply, distribution, and pricing.

In July 2025, Dangote Refinery quietly discontinued the lawsuit challenging the import approvals without publicly stating its reasons, leaving unresolved concerns over market competition and supply dynamics in one of Africa’s largest fuel markets.

Refinery expectations

Nigeria has, for decades, depended heavily on imported petrol due to the poor performance of its state-owned refineries.

The $20 billion Dangote Refinery, owned by billionaire businessman Aliko Dangote, was expected to end that dependence by supplying refined petroleum products locally.

With an installed capacity of 650,000 barrels per day, the facility is Africa’s largest single-train refinery and was projected to significantly reduce pressure on foreign exchange used for fuel imports.

However, petrol imports have persisted as the refinery continues to ramp up production and distribution capacity, while marketers maintain that domestic output alone has yet to fully meet national demand.