Dangote Refinery Sues FG, Petrochemicals FZE Over Fuel Import Licences

•Alleges regulatory breach of existing Federal High Court order

Wale Igbintade 

Dangote Petroleum Refinery and Petrochemicals FZE has instituted a fresh suit at the Federal High Court in Lagos seeking to invalidate fuel import licences issued to petroleum marketers and the Nigerian National Petroleum Company Limited (NNPC Ltd), in what appears to be a renewed legal challenge over Nigeria’s downstream petroleum market structure.

Court records indicate that the matter, Suit No: FHC/L/CS/857/2026, has been assigned to Justice Chukwujekwu Aneke of the Federal High Court, Lagos Judicial Division.

However, the substantive court filings have not yet entered the public domain as of press time.

The development was first reported by Reuters, which said Dangote Refinery is asking the court to set aside import permits issued or renewed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on or about 6 May 2026. 

The licences, according to the refinery, were granted in breach of an existing court order directing parties to maintain the status quo.

In the motion on notice, the plaintiff is relying on sections 6, 36(1) and 287 of the 1999 Constitution (as amended), alongside Order 26 Rules 1 and 2 of the Federal High Court (Civil Procedure) Rules 2019, and the inherent jurisdiction of the court.

The refinery is specifically seeking “an order setting aside all import licences issued and/or renewed on or about 6 May 2026” by the defendants, through the NMDPRA, arguing that the regulatory actions contravene an earlier order of the court made on 29 April 2026, which directed parties to preserve the status quo as at 2 April 2026.

The defendants listed in the suit include Petrochemicals FZE and the Attorney General of the Federation.

According to Reuters, Dangote contends that the licences issued this month undermine its operations and are inconsistent with statutory provisions governing petroleum imports, which the company argues should only be permitted when domestic supply is insufficient.

The regulatory authority, NMDPRA, did not immediately respond to requests for comment on the allegations, Reuters reported.

Similarly, petroleum marketers and state-linked import operators have in previous engagements maintained that fuel imports remain necessary to safeguard supply stability and prevent shortages in the Nigerian market.

The latest lawsuit signals a renewed phase of legal and commercial tensions surrounding fuel importation in Africa’s largest oil-producing country. 

It comes nearly a year after Dangote Refinery withdrew an earlier suit that had challenged similar import licences issued to the NNPC and other trading entities. 

That earlier case, filed amid heightened scrutiny of Nigeria’s downstream deregulation framework, was discontinued in July 2025 without explanation, leaving key legal and policy questions unresolved.

At the heart of the dispute is the ongoing transition in Nigeria’s fuel supply chain, as the country continues to depend on imports despite the commencement of operations at the $20 billion Dangote Refinery, which has a capacity of 650,000 barrels per day.

The facility was widely projected to significantly reduce or eliminate reliance on imported petroleum products; however, imports have persisted as domestic output gradually ramps up to meet national demand.

Industry analysts have noted that the coexistence of large-scale domestic refining and continued importation has created regulatory friction between market participants and regulators, particularly regarding licensing powers, supply security obligations, and competition dynamics in the downstream sector.

As proceedings commence before Justice Aneke, attention is expected to focus on whether the court will enforce or interpret the scope of its earlier status quo order in relation to the disputed licences, and how that may affect ongoing fuel supply arrangements nationwide.

For now, the case remains at a preliminary stage, with the substantive filings yet to be made public and further court processes yet to unfold.