The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) says the lawsuit filed by Dangote Petroleum Refinery challenging fuel import licences could unsettle Nigeria’s downstream petroleum supply chain.

The case follows the March 25 decision of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ease petrol import restrictions and issue fresh approvals to marketers.

Weeks later, the refinery approached the Federal High Court in Lagos to contest licences granted or renewed for marketers and the Nigerian National Petroleum Company Limited (NNPCL).

In its suit, the refinery argued that the approvals breached an earlier court order to maintain the status quo and conflicted with provisions of the Petroleum Industry Act (PIA), which allows imports only when domestic supply falls short.

Reacting in a statement, DAPPMAN said the licences are central to how Nigeria’s fuel distribution network operates and are necessary for maintaining energy security. The association maintained that the regulator acted within its mandate under the PIA when issuing the permits.

DAPPMAN noted that its members had invested heavily in depots, logistics, and compliance systems based on the validity of the approvals. It warned that any attempt to invalidate the licences after the fact could introduce uncertainty into the supply chain at a critical time for the market.

While acknowledging the refinery’s right to seek legal remedies, the marketers’ group said no private operator’s commercial interests should outweigh the regulator’s duty to guarantee adequate fuel supply. It added that Nigeria’s downstream sector is designed to function as a competitive market with multiple participants, rather than a system dominated by a single player.

The association cautioned that shrinking the field of operators through litigation could ultimately affect consumers by limiting supply options and increasing instability in the sector.