Nigeria: Dangote in Fresh Dispute with Fuel Marketers on Imports

Aliko Dangote is done negotiating. On May 15, Dangote Petroleum Refinery filed a new lawsuit against Nigeria’s attorney general at the Federal High Court in Lagos, seeking to overturn fuel import licences issued to oil marketers and the NNPC state oil firm. The move reignites a battle he previously walked away from, and this time, the industry is fighting back hard.

What Triggered the Lawsuit

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) issued fresh import licences in 2026 to six major marketers: NIPCO, AA Rano, Matrix Energy, Shafa Energy, Pinnacle Oil and Gas, and Bono Energy. The approved volumes ranged from 600,000 to 720,000 metric tonnes of petrol, with individual allocations ranging from 60,000 to 150,000 metric tonnes per company.

The timing inflamed Dangote. The NMDPRA had suspended new import permits in February and March 2026, citing improved output from local refineries. Resuming licences months later, without a clear supply justification, was the provocation.

The refinery argued in its filing that the continued issuance of import licences violates Nigerian law, which permits fuel imports only when domestic supply falls short. It also maintained that the newly issued permits breach an earlier court order directing all parties to maintain the status quo pending resolution of a prior case.

The Numbers Behind Dangote’s Argument

The refinery’s case rests on concrete output data. Petrol imports fell to approximately 965 million litres in Q1 2026, down from 2.43 billion litres in Q1 2025, a 60.2% year-on-year decline. Over the same period, local refinery supply rose from 1.996 billion litres to 3.179 billion litres, a 59.2% jump. Domestic refineries supplied roughly 76.7% of Nigeria’s total petrol in Q1 2026, compared to 45.2% in the same period of 2025.

Dangote disclosed in a recent interview that the refinery is now producing 661,000 barrels per day, above its installed capacity of 650,000 barrels per day. He also announced plans to expand capacity to 1.4 million barrels per day within 30 months.

Marketers Push Back

The industry response was swift and pointed. The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) said on Sunday that the licences are lawful instruments under the Petroleum Industry Act and warned that the move could disrupt supply and competition in Africa’s largest oil market. “We respect Dangote’s right to pursue legal remedies,” DAPPMAN stated. “What we do not accept is that a private refinery’s commercial interests should override a regulator’s mandate.”

The Independent Petroleum Marketers Association of Nigeria took an even sharper line. IPMAN Vice President Hammed Fashola said Dangote should focus on competitive pricing rather than legal restrictions. “If he brings down his price to a reasonable level, importation would be difficult. It’s simple to do,” Fashola said, adding that the lawsuit raises monopoly concerns. “At the beginning, that’s the fear of everybody: the fear of monopoly. If he is doing that, it is more or less driving at a monopoly.”

The Regulator’s Position
The NMDPRA insists no new approvals have been issued in 2026, arguing that fuel currently arriving in Nigeria is tied to licences granted in late 2025, given the long lead times in petroleum importation. Officials also stress that domestic refineries now account for over 90% of Nigeria’s fuel supply. Pegasus Reporters

NMDPRA spokesman George Ene-Ita said the agency had not yet been formally served. “We saw it in the public domain, but there has been no summons to the authority,” he said. Proshare

The Bigger Picture
Dangote has been consistent about who he believes is behind the resistance. He has repeatedly alleged that a “mafia” benefiting from Nigeria’s former fuel subsidy regime, which cost the country nearly $10 billion annually, views the refinery as a direct threat to their businesses. “These are the people who are not agreeing for us to settle down because they believe that, no, we are coming here to displace them. Of course, that is what we have done now,” he said.

This is not the first time. Dangote filed a similar suit in 2025, challenging licences issued to NNPC and several traders, then withdrew it in July 2025 without explanation. The unresolved questions left by the lawsuit are back in court.

Expert View

The core tension here is structural, not personal. Nigeria spent decades building an import infrastructure, logistics, financing, and distribution networks around the assumption that domestic refining would never work at scale. Dangote’s refinery has disrupted that assumption faster than anyone expected. Marketers are not simply defending profits; they are defending an entire business model that depends on continued import access. The court will eventually rule on legality, but the real contest is over who controls the downstream architecture of Africa’s largest fuel market in the next decade.

FAQs
Why is Dangote suing the Federal Government over import licences?
The refinery argues that Nigerian law only permits fuel imports when domestic supply cannot meet demand. With the refinery now producing above its installed capacity and supplying over 76% of domestic petrol, Dangote says the licences have no legal basis and violate an earlier court order.

Which companies received the disputed licences?
NIPCO, AA Rano, Matrix Energy, Shafa Energy, Pinnacle Oil and Gas, and Bono Energy. Combined allocations cover between 600,000 and 720,000 metric tonnes of petrol.

Has Dangote filed this kind of lawsuit before?
Yes. He filed a similar suit in 2025 targeting import licences held by NNPC and several traders, but withdrew the case in July 2025 without explanation. The current filing is the second attempt.

What is the marketers’ main argument against the lawsuit?
The import licences are valid under the Petroleum Industry Act. Competition and supply security require multiple market participants, and a private refinery’s commercial interests should not override a regulator’s statutory mandate.

What does the NMDPRA say?
The regulator insists no new licences have been issued in 2026. Petrol currently being imported was approved under late 2025 licences, given the long planning lead times in petroleum logistics.

How much is Dangote’s refinery currently producing?
Dangote disclosed that the refinery is producing 661,000 barrels per day, above its installed capacity of 650,000 barrels per day. He also announced plans to expand to 1.4 million barrels per day