Petrol marketers in Nigeria have pushed back against the Dangote Petroleum Refinery following its fresh lawsuit seeking to stop the issuance of fuel import licences to oil marketers and the Nigerian National Petroleum Company Limited (NNPCL). The latest development has intensified the growing battle over fuel importation in Nigeria, with marketers warning that restricting imports could create monopoly risks and threaten the country's energy security.
Dangote Refinery's Legal Action
The Dangote Refinery had dragged the Attorney General of the Federation, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and several marketers to court over the continued approval of petrol import licences despite the refinery's local production capacity. The refinery argued that under the Petroleum Industry Act (PIA), import licences should only be granted when there is a proven shortage in local supply. It also claimed that continued importation undermines domestic refining and discourages investment in Nigeria's oil sector.
Marketers' Strong Opposition
However, petroleum marketers have now strongly opposed the suit. The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) reportedly described the move as dangerous to market competition, insisting that no single refinery should dominate the downstream sector. According to the marketers, fuel importation remains necessary to maintain steady supply across the country, especially as distribution and logistics challenges persist. They argued that marketers and depot owners had invested billions of naira in infrastructure and supply chains based on legally issued licences approved by regulators.
Warnings Against Monopoly
The association also warned that depending heavily on one refinery could expose Nigerians to supply disruptions and possible price manipulation if operational issues arise. The legal battle comes at a sensitive time when many Nigerians expected the Dangote Refinery to significantly reduce or completely end petrol importation after beginning operations. Aliko Dangote recently disclosed that the refinery had reached production levels of about 661,000 barrels per day, slightly above its installed 650,000 barrels-per-day capacity. Despite this, regulators have continued to issue import approvals to marketers, arguing that the move is necessary to ensure fuel availability nationwide.
Industry Implications
Industry analysts say the court case could shape the future of Nigeria's downstream oil market, particularly on questions surrounding competition, pricing control, local refining protection, and the role of fuel imports. The dispute has also sparked wider concerns about whether Nigeria's oil sector should prioritise protecting local refining investments or maintaining an open market system that allows multiple fuel suppliers to operate simultaneously.
