Oil & Gas

Dangote renews legal battle with Nigeria over fuel import permits

Dangote Petroleum Refinery has launched a fresh lawsuit seeking to overturn fuel import licences issued to the Nigerian National Petroleum Company Limited (NNPCL) and fuel marketers. 

The renewed legal war has reignited tensions over petrol importation in Nigeria despite rising domestic refining capacity. According to Reuters, the refinery filed the legal documents at the Federal High Court in Lagos. 

The latest lawsuit is coming after recent reports from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that Nigeria’s petrol imports dropped sharply in the first quarter of 2026 as supply from local refineries climbed to about 3.18 billion litres.

The refinery is specifically asking the court to nullify import permits issued or renewed by the NMDPRA, insisting that the approvals violate an earlier court order directing parties to maintain the status quo pending determination of the matter. 

Dangote Refinery argued in the filing that the continued issuance of import licences contravenes Nigerian law, which, according to the company, permits fuel imports only when local supply is insufficient to meet demand. 

The refinery also maintained that the newly issued permits threaten its operations at a time when it is ramping up output from its multi-billion-dollar facility. In the past, fuel marketers have defended fuel imports, arguing that importation remains necessary to ensure adequate petrol supply and prevent shortages across the country. 

This is not the first time Dangote Refinery is challenging fuel import licences issued to NNPCL and the NMDPRA. In 2025, the refinery filed a similar suit asking a Nigerian court to nullify fuel import licences granted to NNPC Ltd, AYM Shafa Ltd, A.A. Rano Ltd, T. Time Petroleum Ltd, 2015 Petroleum Ltd and Matrix Petroleum Services Ltd. 

In that earlier case, Africa’s largest refinery also sought N100 billion in damages. However, in July 2025, Dangote Refinery unexpectedly withdrew the lawsuit, telling the court: “Take notice that the plaintiff herein discontinues this suit against the defendants forthwith.” 

Nigeria has historically depended heavily on imported petrol because of the poor performance of state-owned refineries over several decades. 

But the emergence of Dangote Refinery, widely regarded as Africa’s largest single-train refinery, has significantly altered the country’s fuel supply dynamics. 

Since the Dangote Refinery began operating at full capacity, it has increasingly become a major supplier of petrol, diesel and other refined petroleum products in Nigeria, contributing to a sharp decline in fuel imports. 

Recent data showed that petrol imports fell to about 965.52 million litres in the first quarter of 2026, down from an estimated 2.43 billion litres recorded in the corresponding period of 2025, representing a steep 60.2 percent year-on-year decline. 

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