Nigeria’s downstream oil sector is heading for fresh legal turbulence after the Dangote Petroleum Refinery filed a new lawsuit targeting fuel import permits granted to oil marketers and the Nigerian National Petroleum Company Limited (NNPCL).
Court filings seen by Reuters reveal that the refinery has taken action against the Attorney General of the Federation, demanding the reversal of import licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) through a suit filed at the Federal High Court in Lagos.
The refinery is asking the court to nullify recently issued or renewed import permits, arguing that the approvals breach an existing court order that required all parties to maintain the status quo while an earlier related case was being determined. Dangote also contends that continued petrol imports undermine its operations and conflict with the provisions of the Petroleum Industry Act, which stipulates that petroleum products should only be imported when local production falls short of national demand.
Fuel marketers and regulators have pushed back, maintaining that imported petrol remains essential to prevent shortages and ensure adequate supply nationwide. The NMDPRA had not issued an official response at the time of publication.
The filing marks a return to a legal battle the refinery previously abandoned. In July 2025, Dangote withdrew a similar suit challenging import licences issued to the NNPCL and other trading firms, without publicly explaining the decision.
The $20 billion refinery — designed to process 650,000 barrels of crude oil daily — was built with the expectation that it would dramatically cut Nigeria’s decades-long dependence on imported refined petroleum. However, petrol imports have continued even since operations began, with industry players arguing that foreign supplies are still needed while the facility scales up output.
The new lawsuit is set to intensify ongoing debates around market competition, local refining capacity, and the enforcement of the Petroleum Industry Act.
The legal move also comes against a backdrop of wider frustrations within the sector. The refinery has previously accused Nigerian upstream producers of failing to supply crude oil as required under the law, compelling it to turn to international traders who charge additional premiums. The company has warned that this, combined with Nigerian crude trading above global benchmark prices, has significantly driven up its operational costs at a time of heightened volatility in global energy markets.
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