Dangote Refinery Sues Federal Government and Petrochemicals FZE Over Fuel Import Licences

2 months ago 32
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• Alleges regulatory breach of existing Federal High Court order

Wale Igbintade

Dangote Petroleum Refinery and Petrochemicals FZE has filed a new suit in the Federal High Court in Lagos. The case seeks to invalidate fuel import licences that were issued to petroleum marketers and to the Nigerian National Petroleum Company Limited (NNPC Ltd). The action represents a renewed legal challenge to the structure of Nigeria’s downstream petroleum market.

Court records show that the case, numbered FHC/L/CS/857/2026, has been assigned to Justice Chukwujekwu Aneke of the Lagos Judicial Division.

As of the time of this report, the substantive court filings have not yet been released to the public.

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

The refinery claims that these licences were granted in violation of an existing court order that directed parties to maintain the status quo.

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

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

The defendants named 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 conflict with statutory provisions governing petroleum imports, which the company says should only be permitted when domestic supply is insufficient.

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

Petroleum marketers and state‑linked import operators have previously maintained that fuel imports are necessary to safeguard supply stability and prevent shortages in the Nigerian market.

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

It comes almost 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 core of the dispute is the ongoing transition in Nigeria’s fuel supply chain. The country continues to rely on imports even after the $20 billion Dangote Refinery began operations. The refinery has a capacity of 650,000 barrels per day and was expected 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 note that the coexistence of large‑scale domestic refining and continued importation has created regulatory friction between market participants and regulators, especially regarding licensing powers, supply‑security obligations, and competition dynamics in the downstream sector.

As proceedings begin before Justice Aneke, attention will 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 substantive filings yet to be made public and further court processes yet to unfold.

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