Fresh tensions have emerged in Nigeria’s downstream petroleum sector as the Dangote Petroleum Refinery has filed a lawsuit challenging the continued issuance of fuel import licences to marketers and the Nigerian National Petroleum Company Limited (NNPCL).

According to court documents cited by Reuters, the refinery is seeking the intervention of the Federal High Court in Lagos to stop what it describes as “unauthorised” import approvals issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

In the suit, the refinery joined the Attorney General of the Federation as a respondent, asking the court to nullify recent import permits granted to fuel marketers and the NNPCL.

Dangote Refinery argued that the approvals violate a prior court order that directed all parties to maintain the status quo while the matter is still before the court. It also maintained that continued importation of petrol undermines local refining efforts and contradicts provisions of the Petroleum Industry Act (PIA).

The company insisted that fuel imports should only be allowed when local production is insufficient to meet national demand.

On the other hand, fuel marketers and regulatory authorities have continued to defend the issuance of import licences, arguing that imported petrol remains necessary to ensure steady supply across the country and avoid fuel shortages.

As of the time of filing this report, the NMDPRA had not issued an official response to the lawsuit.

The latest legal action adds a new layer to ongoing disputes in the sector. Dangote Refinery had earlier filed a similar case against fuel import licences issued to the NNPCL and other firms but withdrew it in July 2025 without giving reasons.

The development comes despite expectations that the $20 billion refinery, with a capacity of 650,000 barrels per day, would significantly reduce Nigeria’s reliance on imported refined products.

However, petrol imports have continued as stakeholders argue that local output is still ramping up and cannot fully meet national demand.

The refinery has also raised concerns over crude oil supply, accusing local producers of failing to meet domestic supply obligations under the PIA. It said this has forced it to rely on international traders, increasing costs due to additional premiums.

According to the company, Nigerian crude is also being sold above global benchmark prices, further raising production expenses amid global market volatility.

The case is expected to heighten ongoing debates around competition, energy policy, and the implementation of Nigeria’s petroleum reform laws.