Oil & Gas

Fuel marketers in Nigeria have opposed a lawsuit filed by Dangote Petroleum Refinery aimed at cancelling fuel import licences, warning that such a move could threaten fuel supply and weaken competition in Africa’s biggest oil market. The refinery recently challenged permits issued to marketers and the state-owned NNPC, arguing that continued imports undermine its $20 billion investment and sustain inefficiencies in the sector.

Dangote Refinery, which has previously called for restrictions on imports, insists it can satisfy Nigeria’s domestic fuel demand. However, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) defended the licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, describing them as essential legal instruments that support the country’s fuel distribution system.

According to DAPPMAN, the Petroleum Industry Act gives the regulator the authority to issue import licences whenever necessary to guarantee energy security and stable supply. The association stressed that the permits are designed to protect consumers and the market, not to disadvantage any particular refinery. It also warned that cancelling existing approvals could disrupt the downstream sector, where businesses have already invested heavily in storage, logistics, and supply infrastructure.

While acknowledging Dangote’s right to seek legal action, DAPPMAN argued that no private refinery’s commercial interests should outweigh the regulator’s responsibility to maintain a competitive market. Nigeria has historically relied on imported fuel despite being a major crude oil producer, and although the Dangote refinery is expected to reduce import dependence, debates over pricing, supply, and market control continue to divide stakeholders in the industry.