DAPPMAN Reacts As Dangote Refinery Challenges Fuel Import Licences In Court

DAPPMAN Reacts As Dangote Refinery Challenges Fuel Import Licences In Court

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has warned that the lawsuit filed by the Dangote Petroleum Refinery seeking to invalidate fuel import licences issued to marketers and the Nigerian National Petroleum Company (NNPC) Limited could destabilise Nigeria’s downstream petroleum sector.

The dispute marks the latest confrontation in the country’s oil industry over the future of fuel importation in Nigeria amid increasing local refining capacity from the $20 billion Dangote refinery in Lekki, Lagos.

On March 25, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reportedly relaxed petrol import restrictions by approving a fresh batch of import licences for oil marketers. The approvals covered several companies, including NIPCO, Matrix Energy, AA Rano, Pinnacle Oil and Gas, Bono Energy and Shafa Energy. Reports indicated that the licences involved hundreds of thousands of metric tonnes of Premium Motor Spirit (PMS).

However, two months later, the Dangote refinery approached the Federal High Court in Lagos, challenging the legality of the import permits granted by the NMDPRA.

The refinery argued that the approvals violated an earlier court order maintaining the status quo and also contravened provisions of the Petroleum Industry Act (PIA), which it said permits fuel imports only when domestic production cannot meet national demand.

According to court documents, Dangote Refinery maintained that continued large-scale importation of petrol undermines local refining investments and weakens efforts aimed at achieving energy independence for Nigeria.

The refinery reportedly insisted that its current refining capacity is sufficient to meet a significant portion of Nigeria’s daily petrol demand, reducing the need for fresh import licences.

Industry data released earlier by the NMDPRA indicated that the Dangote refinery currently supplies more than 90 per cent of petrol consumed daily in Nigeria, contributing to a sharp decline in fuel imports in recent months.

Reacting to the lawsuit in a statement issued on Sunday, DAPPMAN defended the regulator’s decision and warned that cancelling the licences could disrupt the country’s fuel distribution network.

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“The import licences at the centre of this lawsuit are not administrative courtesies. They are the legal instruments through which Nigeria’s fuel supply chain functions,” the association stated.

DAPPMAN said the licences were issued legally under the framework of the Petroleum Industry Act by a regulator empowered to safeguard national fuel supply.

“The NMDPRA has consistently maintained, correctly, that these licences exist to protect supply security, not to disadvantage any single producer, however large,” the marketers added.

The association said its members had committed billions of naira to depot infrastructure, fuel storage facilities, distribution logistics and compliance systems based on the validity of the import approvals granted by the regulator.

According to DAPPMAN, any legal attempt to retroactively void the licences would create uncertainty within the downstream petroleum industry at a sensitive time for Nigeria’s energy market.

“A legal action designed to retroactively void those licences does not just affect individual businesses, it introduces uncertainty into the entire downstream supply chain at a moment when Nigeria can least afford it,” the statement said.

The marketers also argued that while Dangote Refinery has the constitutional right to seek legal redress, no single private refinery should override the statutory responsibilities of regulators charged with ensuring fuel availability for Nigerians.

“What we do not accept is the premise that a private refinery’s commercial interests should override a regulatory authority’s mandate to ensure adequate supply to Nigerian consumers,” DAPPMAN said.

The association further maintained that Nigeria’s downstream oil sector was intentionally designed as a competitive market involving multiple operators rather than a monopoly structure dominated by one supplier.

“The downstream sector works because multiple players operate within it. A lawsuit that seeks to reduce that field of players is ultimately a lawsuit against Nigerian consumers,” the association added.

The legal battle has renewed concerns among industry stakeholders over possible market dominance and pricing control in the downstream petroleum sector if fuel imports are significantly restricted.

While some analysts believe Nigeria should gradually reduce petrol importation to encourage local refining and conserve foreign exchange, others argue that maintaining multiple supply channels remains necessary to prevent fuel scarcity and price instability.

The NMDPRA has repeatedly stated that import licences are issued based on prevailing market realities and supply requirements under the Petroleum Industry Act.

Meanwhile, the Nigerian National Petroleum Company Limited (NNPCL) and the NMDPRA are yet to publicly respond in detail to the latest court action filed by Dangote Refinery.

The case is expected to test the interpretation of key provisions of the Petroleum Industry Act regarding fuel importation and local refining obligations in Nigeria’s evolving oil and gas sector.

DAPPMAN Reacts As Dangote Refinery Challenges Fuel Import Licences In Court