The Dangote Petroleum Refinery has initiated legal action against the Federal Government of Nigeria, challenging the recent issuance of fresh Premium Motor Spirit (PMS) import licences to several oil marketing companies.

The lawsuit, filed before the Federal High Court in Lagos, marks a significant escalation in the tension between the multi-billion dollar refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The Legal Dispute

The refinery contends that the NMDPRA’s decision to grant new import permits violates the Petroleum Industry Act (PIA). According to the refinery’s legal team, the PIA stipulates that fuel imports should only be sanctioned when domestic production is insufficient to meet national demand.

In the suit, Dangote Refinery argues that:

Continued importation undermines the viability of local refining operations.

The practice discourages future investment in Nigeria’s domestic petroleum processing capacity.

Unrestricted imports expose the nation to a renewed dependence on foreign energy supplies.

Shift in Regulatory Policy

The issuance of these licences represents a notable policy reversal. In early 2026, the NMDPRA had suspended fresh petrol import permits, citing a substantial improvement in local refining output.

However, regulatory documents show that the agency has now granted licences to six major marketers—NIPCO, AA Rano, Matrix Energy, Shafa Energy, Pinnacle Oil and Gas, and Bono Energy. These licences cover the importation of between 600,000 and 720,000 metric tonnes of PMS, with individual allocations ranging from 60,000 to 150,000 metric tonnes.

Market Data and Domestic Supply

Recent data underscores the refinery's significant role in the current market:

Production: In February 2026, the Dangote refinery supplied approximately 36.5 million litres of petrol daily.

Market Share: This output accounted for over 90% of total domestic consumption.

Import Decline: Consequently, imports plummeted to roughly three million litres per day, the lowest volume recorded in over a year.

Allegations of Market "Sabotage"

In a recent interview with Nicolai Tangen, CEO of Norway’s Sovereign Wealth Fund, Aliko Dangote, President of the Dangote Group, alleged that "entrenched interests" are actively working to frustrate the refinery's progress.

"Some groups opposed the refinery because they benefitted immensely from Nigeria’s former fuel subsidy system," Dangote stated, noting that Nigeria previously spent nearly $10 billion annually on subsidies—a system that favored traders, shippers, and importers over local producers.

Dangote further alleged that a "mafia" of fuel importers fears the refinery will permanently disrupt the trade flows that have seen Nigeria export crude and import refined products for decades. He emphasized that the project, initiated in 2013, faced a five-year delay in land acquisition and numerous infrastructural hurdles specifically designed to prevent the country from achieving energy self-sufficiency.

Industry Reaction

The sector remains deeply divided. Supporters of the NMDPRA’s decision argue that maintaining import licences is essential for market competition and national supply security, preventing a domestic monopoly. Conversely, critics and industry analysts warn that prioritizing imports over local production could weaken the Nigerian naira and jeopardize the long-term stability of the domestic refining sector.