Reported by: Ijeoma G | Edited by: Oravbiere Osayomore Promise.
Dangote Petroleum Refinery has reopened its legal battle with the Nigerian government, filing a fresh lawsuit against the country’s Attorney General in a bid to overturn fuel import licences granted to the Nigerian National Petroleum Company Limited (NNPC) and several private oil marketers. The suit, filed on Friday, 15 May 2026 at the Federal High Court in Lagos, asks the court to set aside import permits issued or renewed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), arguing that the approvals breach an earlier court order to maintain the status quo and violate provisions of the Petroleum Industry Act (PIA) that restrict imports to periods when domestic supply falls short.
The legal action marks a sharp escalation in the long‑running dispute between Africa’s richest man and the nation’s regulatory system. The $20 billion refinery, which began production in 2024, has a capacity of 650,000 barrels per day and was designed to end Nigeria’s decades‑long dependence on imported refined petroleum products. In the first quarter of 2026, data compiled by the NMDPRA showed that petrol imports dropped by more than 60 per cent compared to the same period in 2025, while local refineries supplied about 76.7 per cent of the country’s total petrol volume. Despite that shift, the NMDPRA resumed the issuance of fresh import licences earlier in May, awarding permits to six firms to bring in 600,000 metric tonnes of product.
In its filing, Dangote Refinery argued that the continued granting of import licences undermines its commercial viability at a time when the facility is ramping up output. The refinery pointed to Sections 317(8) and (9) of the PIA, which restrict the regulator from issuing import permits unless there is a verified shortfall in local supply. Dangote’s lawyers contend that no such shortfall exists and that the licences issued this month “undermine its operations and contravene the law”. The refinery also accused the NMDPRA of violating an earlier court order that required all parties to maintain the status quo pending the determination of a previous suit, which Dangote withdrew without explanation in July 2025.
That earlier case, filed in 2024, sought N100 billion in damages and asked the court to nullify import permits granted to NNPC Ltd, AYM Shafa Ltd, A.A. Rano Ltd, T. Time Petroleum Ltd, 2015 Petroleum Ltd and Matrix Petroleum Services Ltd. The suit was discontinued abruptly, leaving unresolved questions over competition and supply in one of Africa’s largest fuel markets. The new lawsuit effectively resuscitates those same issues, but this time the refinery has named the Attorney General of the Federation, Lateef Olasunkanmi Fagbemi, as the sole respondent, a move that signals the company’s intention to challenge the legality of import licences at the highest level of government.
Regulators and marketers have consistently defended the importation of fuel, arguing that domestic supply from the Dangote Refinery alone cannot guarantee nationwide coverage and that imports serve as a necessary buffer against potential shortages. The NMDPRA had not issued an immediate response to the latest suit, but its previous defence rested on the argument that the refinery lacks the capacity to meet the country’s entire demand and that imports are lawfully issued to bridge supply gaps. Industry observers note, however, that the NMDPRA’s own data shows a sharp decline in import volumes, with local supply now accounting for more than three‑quarters of total consumption.
The World Bank has added another layer of complexity to the debate. In April 2026, the Bank urged Nigeria to restore competition in the petrol market, warning that Dangote’s growing dominance could stifle market forces and lead to higher prices. The Bank’s recommendation was quickly seized upon by importers who argued that a single‑supplier model would be risky for energy security. Dangote, for his part, has consistently rejected the notion that his refinery is a monopoly, pointing to the fact that other domestic refineries are also in operation and that his facility is willing to supply products at competitive rates.
The political and economic stakes are immense. Nigeria has historically spent billions of dollars on fuel imports, draining foreign reserves and exposing the naira to constant pressure. The Dangote Refinery was widely seen as the solution to that chronic problem. If the court rules in favour of the refinery, it could force the NMDPRA to halt virtually all petrol imports, delivering a major victory to Aliko Dangote and reshaping the downstream sector. If the court upholds the regulator’s right to issue permits, the status quo will continue, and the refinery’s market share will be permanently contested by importers who are able to bring in product at prices that sometimes undercut local production.
The case is likely to attract intense scrutiny from international investors, multilateral institutions and oil‑producing nations. A decision favouring the refinery could encourage further private investment in domestic refining, while a ruling that validates the import regime could signal that Nigeria remains committed to a mixed‑supply model, preserving the role of global trading houses and middlemen in the nation’s fuel value chain.
The Federal High Court in Lagos has yet to fix a date for the hearing. The Attorney General’s office is expected to file a preliminary objection, likely arguing that the refinery has not exhausted administrative remedies before approaching the court. Dangote’s legal team will counter that the matter is purely a question of statutory interpretation and that the PIA’s provisions are clear: imports are permissible only when domestic supply is inadequate. Until the court decides, the NMDPRA is expected to continue issuing licences, and the battle over who controls Nigeria’s petrol market will remain firmly in the hands of the judiciary.
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