Fresh controversy has emerged in Nigeria’s downstream oil sector as the Dangote Petroleum Refinery has taken legal action against the Federal Government, the Nigerian National Petroleum Company Limited (NNPCL), and several oil marketers over the continued importation of petrol into the country.
According to court documents obtained by Reuters, the refinery filed a suit at the Federal High Court in Lagos against the Attorney General of the Federation, seeking the cancellation of fuel import licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The refinery argued that the approval and renewal of the import permits violated an earlier court directive ordering parties to maintain the status quo pending the resolution of the matter.
Dangote Refinery maintained that the continued importation of petrol is negatively affecting its operations and runs contrary to the provisions of the Petroleum Industry Act (PIA), which states that petroleum products should only be imported when local production cannot meet domestic demand.
However, regulators and fuel marketers have defended the import licences, insisting that imported petrol remains necessary to guarantee steady supply and prevent fuel shortages across the country.
The NMDPRA had not issued any official response to the lawsuit as of the time of filing this report.
The latest legal battle follows a similar suit previously filed by the refinery against the NNPCL and some fuel traders in 2025, which was later withdrawn without any public explanation.
Nigeria has long depended on imported petroleum products due to the poor performance of state-owned refineries. The $20 billion Dangote Refinery, with a processing capacity of 650,000 barrels of crude oil per day, was expected to significantly reduce the country’s dependence on imported fuel.
Despite the commencement of operations at the refinery, petrol imports have continued, with industry stakeholders insisting that imported products are still needed to cover supply gaps while local refining capacity stabilises.
The new lawsuit is expected to deepen debates surrounding market competition, fuel supply, local refining, and the implementation of the Petroleum Industry Act.
The legal action also comes amid existing disputes over crude oil supply to the refinery. Dangote Refinery had earlier accused Nigerian oil producers of failing to supply crude oil in line with the PIA, forcing the company to rely on international traders at higher costs.
According to the refinery, sourcing crude from foreign traders has significantly increased operational expenses due to additional premiums charged on purchases.
The company also noted that Nigerian crude oil currently trades above global benchmark prices, further increasing procurement costs amid volatility in the international oil market.
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