Dangote Refinery files suit against FG, NNPCL, Oil marketers

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Dangote Petroleum Refinery has moved to halt the continued importation of petrol into the country through a fresh lawsuit challenging fuel import licences granted to oil marketers and the Nigerian National Petroleum Company Limited (NNPCL).

According to report by Reuters, the refinery filed the suit against the Attorney General of the Federation, seeking the reversal of import permits issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The development marks another chapter in the growing dispute over fuel importation and local refining in Nigeria.

In the suit filed before the Federal High Court in Lagos, the refinery asked the court to nullify import permits recently issued or renewed by the NMDPRA.

According to the company, the approvals violated an earlier court order directing all parties to maintain the status quo pending the determination of the case.

Dangote Refinery argued that continued fuel importation undermines its operations and contradicts provisions of the Petroleum Industry Act.

The company maintained that petroleum products should only be imported when local production is insufficient to meet national demand.

Fuel marketers and regulators have consistently defended the issuance of import licences, insisting that imported petrol remains necessary to maintain adequate supply across the country and prevent shortages.

As of the time of filing this report, the NMDPRA had yet to officially comment on the lawsuit.

The latest legal action comes almost a year after Dangote Refinery withdrew a similar suit challenging the issuance of fuel import licences to the NNPCL and other trading firms.

The refinery had discontinued the previous case in July 2025 without publicly disclosing reasons for the withdrawal.

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

The Dangote Refinery, valued at about $20bn and designed to process 650,000 barrels of crude oil daily, was widely expected to drastically reduce the country’s dependence on imported refined petroleum products.

Despite the commencement of operations at the refinery, petrol imports have continued, with industry stakeholders arguing that imported products are still required to bridge supply gaps while the refinery ramps up production.

The new court case is expected to intensify debates around market competition, local refining capacity and the implementation of the Petroleum Industry Act.

The lawsuit comes amid existing tensions within the oil sector over crude oil supply to the refinery.

The refinery had earlier accused Nigerian upstream oil producers of failing to supply crude oil as required under the Petroleum Industry Act, forcing the company to source large volumes of crude from international traders at higher costs.

According to the refinery, reliance on foreign traders has significantly increased operational expenses due to additional premiums charged on crude purchases.

“The high crude cost is compounded by the fact that Nigeria upstream producers have failed to supply crude oil to the refinery as required under the PIA, forcing us to source a substantial portion through international traders who charge an additional premium,” the company stated.

The refinery added that Nigerian crude oil currently trades above global benchmark prices, worsening procurement costs amid volatility in the international energy market.

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