Your Fuel Could Vanish Overnight— Marketers Warn as Dangote Drags FG to Court Over Import Licences

Reported by: Ijeoma G | Edited by: Oravbiere Osayomore Promise.

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has fired back at the Dangote Petroleum Refinery over a fresh lawsuit challenging the validity of fuel import licences issued to marketers and the Nigerian National Petroleum Company (NNPC) Limited, warning that the legal action could destabilise the country’s downstream petroleum sector and throw the nation’s fuel supply into chaos. DAPPMAN, in a strongly worded statement issued on Sunday, May 17, 2026, described the import licences at the centre of the dispute as “not administrative courtesies” but the legal instruments through which Nigeria’s fuel supply chain functions, adding that no private refinery’s commercial interests should override the regulator’s mandate to ensure adequate supply for Nigerian consumers.

The fresh legal battle began on May 15, 2026, when Dangote Petroleum Refinery filed a lawsuit against the Attorney‑General of the Federation, asking the Federal High Court in Lagos to nullify import permits issued or renewed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). In its filing, the refinery argued that the licences violated an earlier court order directing parties to maintain the status quo and contravened provisions of the Petroleum Industry Act (PIA), which it said permits fuel imports only when domestic supply is insufficient to meet national demand. Dangote insisted that its 650,000‑barrel‑per‑day facility, which began processing crude in 2024, has the capacity to satisfy Nigeria’s fuel needs while also exporting refined products to other African countries. The company noted that it exported 17 cargoes of refined petroleum products to different African countries in March alone.

Reacting to the suit, DAPPMAN warned that any attempt to retroactively void the licences would introduce dangerous uncertainty into the entire downstream supply chain at a moment when Nigeria can least afford it. The association noted that its member companies had invested billions of naira in depot infrastructure, logistics networks, and compliance systems based on the understanding that their operating licences were lawful, valid and durable. “A legal action designed to retroactively void those licences does not just affect individual businesses. It introduces uncertainty into the entire downstream supply chain at a moment when Nigeria can least afford it,” DAPPMAN said. The marketers argued that the NMDPRA, as the industry regulator, possesses the legal authority to determine when import licences are necessary in the national interest, and that the PIA clearly empowers the regulator to approve fuel imports whenever it deems such action necessary to protect supply security.

The dispute is the latest chapter in a growing battle over fuel importation and market control in Nigeria’s downstream petroleum sector following the commencement of operations at the Dangote Refinery. Since the refinery began supplying petroleum products to the local market, Dangote has repeatedly argued that continued issuance of fuel import licences undermines domestic refining, weakens investment incentives, and encourages dependence on imported products despite existing local capacity. In 2025, the refinery filed a similar suit challenging import licences granted to NNPC Ltd and several fuel traders, but quietly withdrew the case in July 2025 without explanation. The new lawsuit reignites tensions that had remained unresolved, raising fresh questions about competition and supply in one of Africa’s largest fuel markets.

Data from the NMDPRA showed that Nigeria’s petrol imports declined sharply from 25 million litres per day in January 2026 to 3.7 million litres per day by April 2026 as the Dangote Refinery ramped up production. However, the agency’s factsheet also noted that petrol stock cover dropped from 21.2 days in March to 17.7 days in April, while diesel reserves fell sharply from 55.4 days to 39 days, indicating that supply gaps still exist. Some industry stakeholders and anonymous NMDPRA insiders accused Dangote Refinery of equally importing Premium Motor Spirit, averaging 150,000 metric tonnes monthly, a claim the refinery has denied. These complexities have made the legal battle even more contentious, as both sides argue from different interpretations of the same statutory provisions.

DAPPMAN rejected the notion that the commercial interests of a single private refinery should override the regulator’s statutory responsibility to guarantee adequate fuel supply to Nigerian consumers. “What we do not accept is the premise that a private refinery’s commercial interests should override a regulatory authority’s mandate to ensure adequate supply to Nigerian consumers,” the association said. “The downstream sector works because multiple players operate within it. A lawsuit that seeks to reduce that field of players is ultimately a lawsuit against Nigerian consumers.” The marketers added that the PIA, which they said the regulator had consistently interpreted correctly, empowers the NMDPRA to approve imports wherever it deems such action necessary to protect the country’s energy security, and that the issue had previously been tested in court and defended successfully.

The court has already issued an interim order freezing the status of import licences pending the hearing of a motion on notice, following an ex parte application filed by the refinery on April 27, 2026. The order, which was not immediately reported, adds a layer of legal uncertainty to an already volatile situation. The NMDPRA had not issued an official response to the latest suit as of the time of this report, but the agency has consistently defended the issuance of import permits as necessary tools for safeguarding national supply. DAPPMAN said it would engage legal counsel and make formal representations to the relevant authorities, insisting that the market should remain competitive and open to multiple participants.

The outcome of the case could have far‑reaching implications for Nigeria’s downstream oil sector. If the court rules in favour of Dangote, it could effectively halt all petrol imports, granting the refinery a near‑monopoly over the country’s fuel supply. If the court upholds the regulator’s authority, the current mixed‑supply model would continue, preserving the role of importers in the nation’s fuel value chain. Either way, the legal battle is expected to intensify debates around market competition, local refining capacity and the implementation of the Petroleum Industry Act. As the case heads to court, millions of Nigerians who rely on a steady supply of petrol are left watching, wondering whether the fight between a private refinery and the government will leave them stranded at the pump.

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