Fuel Import Battle Deepens as Marketers Oppose Dangote’s Fresh Court Move Against Petrol Licences
The battle over fuel importation in Nigeria has intensified after petroleum marketers strongly opposed a fresh lawsuit filed by the Aliko Dangote-owned Dangote Petroleum Refinery seeking to stop the issuance of petrol import licences. The move has triggered widespread reactions across the downstream oil sector, with depot owners and marketers warning that banning imports could threaten competition, disrupt supply chains, and create fears of monopoly in the nation’s fuel market.
The refinery, valued at $20 billion and located in Lekki, Lagos, approached the Federal High Court to challenge import permits recently granted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority to several fuel marketers. Dangote Refinery argued that continued fuel importation contradicts the Petroleum Industry Act, insisting that imports should only happen when local supply falls short. According to reports, licences were recently approved for six companies, including NIPCO, Matrix Energy, AA Rano, and Pinnacle Oil, to import about 720,000 metric tonnes of petrol into Nigeria.
Reacting to the lawsuit, the Depot and Petroleum Products Marketers Association of Nigeria accused the refinery of attempting to weaken competition in the downstream sector. The association maintained that fuel import licences remain legal and necessary for ensuring energy security and preventing shortages. Marketers also argued that billions of naira have already been invested in depots, logistics, and distribution infrastructure based on the current deregulated market framework. Industry stakeholders warned that limiting imports could destabilize the market and negatively impact Nigerian consumers.
Officials of the Independent Petroleum Marketers Association of Nigeria and the Petroleum Products Retail Outlet Owners Association of Nigeria also criticized the legal action, describing it as unnecessary. According to IPMAN leaders, Dangote Refinery should focus more on competitive fuel pricing rather than seeking restrictions on imports through the courts. While acknowledging the refinery’s role in reducing fuel prices in recent months, marketers stressed that maintaining multiple suppliers in the market remains important to avoid monopoly concerns and guarantee steady product availability nationwide.
Despite the growing backlash, President Bola Tinubu has openly defended government support for the Dangote Refinery, describing the project as critical to Nigeria’s energy security and economic stability. Speaking recently at the Africa CEO Forum in Rwanda, Tinubu revealed that his administration approved crude supply in naira and granted key support measures to help stabilize local fuel production. Meanwhile, Dangote Refinery insists it now has the capacity to meet Nigeria’s fuel demands, claiming it currently processes over 661,000 barrels of crude daily and plans to expand production further in the coming years.