Back home in Nigeria, Dangote faces fresh standoff with fuel marketers over imports

Aliko Dangote is facing a fresh showdown with fuel importers in Nigeria, as marketers push back against efforts to reduce the country’s dependence on imported petroleum products following the launch of the Dangote refinery.

• Dangote Petroleum Refinery has filed a lawsuit to invalidate import licences issued to fuel marketers and the NNPC.
• Fuel marketers, represented by DAPPMAN, have opposed Dangote's legal move, warning it could destabilise the country's fuel supply and undermine competition.
• Dangote argues that its new refinery can meet Nigeria's domestic fuel demand and should be shielded from 'distortive' import practices.
• DAPPMAN insists that import licences are legal necessities for maintaining fuel supply, and cancellations could disrupt sector stability and investment.

Fuel marketers in Nigeria have escalated their opposition to a lawsuit filed by Dangote Petroleum Refinery seeking to invalidate import licences issued to petroleum marketers and the Nigerian National Petroleum Company (NNPC), warning that the move could destabilise fuel supply and undermine competition in Africa’s largest oil market.

The legal battles come amid Dangote’s recent tour of East Africa, where governments are seeking to establish a functional refinery. He has emerged as the preferred bidder in the region’s push to secure the project.

Nigerian-based Dangote Petroleum Refinery has previously sought tighter restrictions on fuel imports, arguing that its refinery is capable of meeting Nigeria’s domestic demand and should be protected from what it describes as distortive import practices.

The company recently filed a suit against the Nigerian government challenging the regulatory permits granted for imports of refined petroleum products.

However, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has pushed back strongly, saying on Sunday that the licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority are “not administrative courtesies” but legal instruments essential to maintaining the country’s fuel supply chain.

“These licences exist to protect fuel supply, not to disadvantage any single producer,” DAPPMAN said in a statement seen by Reuters, adding that the Petroleum Industry Act empowers regulators to issue import licences where necessary to ensure national energy security.

Legal Battle Over Market Structure

Last July, Dangote Refinery withdrew its N100 billion ($66 million) lawsuit against Nigeria’s petroleum regulator and several fuel importers, including NNPC Ltd. The refinery had argued that authorities continued issuing import licences for products such as Automotive Gas Oil (diesel) and Jet A1 aviation fuel despite the existence of local refining capacity.

Court documents show the refinery is now seeking to overturn import permits granted or renewed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), arguing that the approvals violate an earlier court order directing parties to maintain the status quo, Reuters reported

DAPPMAN warned that any retroactive cancellation of existing permits could create instability in the downstream sector, where significant investments have been made based on current regulatory approvals.

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

Nigeria, despite being a major crude oil producer, has long depended on imported refined petroleum products to meet domestic demand.

The Dangote refinery, which began operations in 2024, is widely seen as a strategic asset for reducing that reliance, but its emergence has also intensified debates over pricing, supply control, and market structure.

DAPPMAN said it would engage legal counsel and relevant authorities, insisting that Nigeria’s downstream market must remain open and competitive with multiple participants to ensure stability and consumer protection.