In what appears to be a continuation of previous friction in Nigeria’s midstream and downstream petroleum sectors, the Dangote Petroleum Refinery has filed a new lawsuit (Suit No: FHC/L/CS/857/2026) against the Federal Government at the Federal High Court, Lagos Judicial Division. The refinery is asking the Court to nullify the six petroleum import licences issued or renewed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in May 2026. Notwithstanding the pending suit, NMDPRA issued additional import licences in June for the third quarter (July to September), authorising the importation of Premium Motor Spirit (“PMS” or “Petrol”) and Automotive Gas Oil (“AGO” or “diesel”). The issuance of licences is reportedly still ongoing, with total petrol imports expected to exceed 800,000 metric tonnes.
The refinery claims that the licences violate a previous court order instructing parties to maintain the status quo. Dangote further claims that continued imports damage company operations, impede domestic refining, and contravene provisions of the Petroleum Industry Act (PIA) 2021 that permit imports only when local supply is inadequate to fulfil national demand.
Dangote’s Position
In the first five months of 2026, the refinery delivered over 5.84 billion litres of fuel, accounting for 81.4% of the total market supply. The refinery, which has a capacity of 650,000 barrels per day, claims to have exceeded nameplate capacity and can dependably supply national demand. Aliko Dangote, President of the Dangote Group, has frequently urged for a halt to fuel imports, blaming some interests (known as the “Mafia”) of undermining domestic refining to retain subsidy-era earnings. The refinery sees the May licences, granted to marketers NIPCO (120,000 MT), AA Rano (150,000 MT), Matrix (150,000 MT), Shafa (120,000 MT), Pinnacle (120,000 MT), and Bono (60,000 MT), totalling 720,000 MT of petrol, as detrimental to energy independence, foreign exchange conservation, job creation, and industrialisation.
This marks a renewed phase of conflict, nearly a year after Dangote withdrew a similar suit in July 2025. For background, click here to read our earlier analysis on the 2024 litigation between Dangote and the NMDPRA over the issuance of import licences.
Opposing Views
The Nigerian National Petroleum Company Limited (NNPC Limited) has dismissed Dangote’s assertions in its proposed defence, claiming that under the PIA and Backward Integration Policy, regulators have the discretion to issue import licences. NNPC Limited insists that there is no blanket restriction on imports when they are required for supply security and has further accused the refinery of attempting to monopolise the market.
Fuel marketers and other stakeholders share this sentiment, warning that banning imports might diminish competitiveness, jeopardise supply stability, expose the country to shortages, price volatility, and dangers to national energy security. They suggest that a liberalised market should allow for purchasing from both domestic and international providers, resulting in greater price discovery and reliability, particularly during periods of low local output.
Quo Vadis?
Despite being Africa’s largest oil producer, Nigeria has historically relied on imported petroleum products due to inefficient state refineries. The $20 billion Dangote refinery has the ambition of eliminating this dependency. The dispute highlights the ongoing tension in the downstream industry between supporting local refining and guaranteeing competitive, consistent and stable supply.
If the lawsuit proceeds, its outcome might have a substantial impact on Nigeria’s fuel import policy, competitive dynamics, and future structure of the downstream petroleum sector. It will most likely be determined by how the prior status quo order is interpreted, as well as the balance of domestic capacity and import demands in line with the pertinent provisions of the PIA.
The fresh suit is still in its early stages, and the saga over the balance between local refining and fuel imports in the Nigerian petroleum sector continues.
