Dangote Refinery Sues Nigerian Petroleum Regulatory Authority and Major Oil Importers Over Fuel Import Licenses

Dangote Petroleum Refinery and Petrochemicals has initiated legal action against the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and several key oil importers, seeking N100 billion in damages. The lawsuit, filed at the Federal High Court in Abuja, challenges the ongoing issuance of fuel import licenses, which Dangote claims are unnecessary due to the refinery’s ability to meet domestic demand.

The refinery asserts that NMDPRA violated the Petroleum Industry Act by allowing imports despite no shortfalls in local fuel production. It also accuses international oil companies and local importers, including the Nigerian National Petroleum Corporation Limited (NNPCL), Matrix Petroleum, and A.A. Rano Limited, of undermining its operations by flooding the market with imported products.

Dangote is pushing for the court to revoke these import licenses and enforce the refinery’s tax-exempt status under free zone regulations. At a recent hearing, legal representatives indicated that settlement discussions were underway, with a report expected in January 2025.

The NMDPRA, when contacted, claimed to have no knowledge of the lawsuit, while oil marketers stressed that the deregulated market allows for fuel imports from various sources. Despite the legal challenge, industry insiders suggest that recent developments may lead to the withdrawal of the case.