Fuel marketers warn Dangote lawsuit over import licences could disrupt supply, competition

Fuel marketers in Nigeria have warned that the lawsuit by Dangote Petroleum Refinery seeking to invalidate import licences, could disrupt supply and competition.

Dangote Petroleum refinery last week filed a fresh suit against the Nigerian government, Reuters reported, challenging permits issued to marketers and state oil firm NNPC to import refined products, arguing they undermine Dangote’s $20 billion refinery and risk entrenching inefficiencies.

The refinery has previously sought limits on imports, saying it can meet domestic demand. However, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) said on Sunday the licences granted by the regulator, Nigerian Midstream and Downstream Petroleum Regulatory Authority, were “not administrative courtesies” but legal tools underpinning the country’s fuel supply chain.

DAPPMAN said the Petroleum Industry Act empowers the regulator to issue licences where necessary to ensure supply security. “These licences exist to protect supply, not ‌to disadvantage any single producer,” it said in a statement.

The group also warned that retroactively voiding permits could destabilise the downstream sector, where companies have invested heavily in storage and logistics networks based on existing approvals.

“We respect Dangote’s right to pursue legal remedies,” DAPPMAN added. “What we do not accept is that a private refinery’s commercial interests should override a regulator’s mandate.”

Nigeria has long relied on imports despite being a major crude producer. The Dangote refinery, which began processing crude in 2024, is seen as key to reducing that dependence, though supply dynamics and pricing remain contentious.

DAPPMAN said it would engage legal counsel and relevant authorities, arguing the market should remain competitive and open to multiple participants.