A fresh dispute has emerged in Nigeria’s downstream oil sector after the Dangote Petroleum Refinery filed a court case seeking to halt the issuance of petrol import licences by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The refinery is asking the Federal High Court in Lagos to void recent permits granted to several fuel traders, arguing that the approvals conflict with the Petroleum Industry Act, which allows imports only when there is a proven shortfall in local supply.
Depot owners and petroleum marketers have reacted strongly, warning that the legal action could disrupt the supply chain and weaken competition in the deregulated market.
The Depot and Petroleum Products Marketers Association of Nigeria said its members would resist any attempt to render their investments in depots, storage and logistics useless through a court decision. The association maintained that the licences were validly issued and are necessary to guarantee energy security across the country.
Similarly, the Independent Petroleum Marketers Association of Nigeria said pricing and market forces, not court action should determine whether imports continue. The group warned that stopping imports through litigation could raise fears of monopoly in the sector.
The Petroleum Products Retail Outlets Owners Association of Nigeria also described the lawsuit as unnecessary, noting that marketers still experience delays when lifting products locally, which raises concerns about whether domestic supply is consistently sufficient.
Industry sources disclosed that the regulator recently approved about 720,000 metric tonnes of petrol imports for six firms to prevent shortages while local refining stabilises. An official of the authority said imports remain a temporary measure until domestic output can reliably meet national demand.
The President of the Dangote Group, Aliko Dangote, has insisted that continued fuel imports undermine local refining efforts, stating that the refinery is producing large volumes of petrol and has even processed crude above its installed capacity.
Meanwhile, President Bola Tinubu recently defended the Federal Government’s support for the refinery, describing it as vital to Nigeria’s energy security. He revealed that the government approved crude supply in naira and granted waivers to ease the refinery’s operations.
The case is expected to intensify the ongoing debate over how to balance support for local refining with the need to maintain a competitive and stable fuel market for consumers.
