Import licences: Judge’s absence stalls Dangote Refinery’s suit against FG

Dangote refinery

Proceedings in the suit filed by Dangote Petroleum Refinery against the Federal Government over the alleged issuance of fuel import licences to some petroleum marketers were on Monday stalled following the absence of the presiding judge, Justice Chukwujekwu Aneke of the Federal High Court, Lagos.

Justice Aneke was said to be indisposed, prompting the court to adjourn the matter until October 7 for hearing.

The suit, marked FHC/L/CS/857/2026, also involves the Nigerian National Petroleum Company Limited (NNPC Ltd) and several petroleum marketing firms, including NIPCO, AA Rano, Matrix, Shafa, Pinnacle and Bono, which the refinery alleges benefited from the disputed import licences.

Dangote Petroleum Refinery is asking the court to invalidate the fuel import licences allegedly issued or renewed in favour of the marketers and NNPC Ltd, contending that the approvals were granted in violation of an earlier court order.

The application, brought under 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, seeks an order setting aside all import licences issued or renewed on or about May 6, 2026.

The refinery argues that the licences were granted despite the court’s April 29, 2026 order directing all parties to maintain the status quo as it existed on April 2, 2026.

In its defence, however, NNPC urged the court to dismiss the suit, maintaining that the Petroleum Industry Act (PIA) and the Federal Government’s Backward Integration Policy empower the relevant regulatory authorities to issue fuel import licences whenever necessary to guarantee national supply.

The national oil company argued that there is no blanket prohibition on fuel imports, particularly where imports are required to ensure product availability and market stability.

NNPC further accused Dangote Refinery of attempting to monopolise Nigeria’s downstream petroleum market through the litigation.

According to the company, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) acted within its statutory powers in issuing the disputed licences, noting that the law permits such approvals for companies with local refining capacity or a proven track record in petroleum trading.

It also contended that the Petroleum Industry Act does not impose a total ban on fuel imports except where there is a verified domestic surplus, insisting that importation remains a lawful tool for stabilising fuel supply and prices.

Dangote Refinery, on its part, argued that the continued issuance and renewal of import licences undermine local refining and violate Section 317(9) of the Petroleum Industry Act, which it interprets as restricting imports to situations where there is a proven domestic supply shortfall.

The refinery maintained that with its installed refining capacity of about 650,000 barrels per day, Nigeria has sufficient domestic refining capacity to meet local demand. It relied on regulatory data which it said indicates that daily production of petrol and diesel now exceeds national consumption.

It added that the refinery was established to meet Nigeria’s refined petroleum needs while generating export surpluses, describing the project as a strategic national investment expected to create a multi-billion-dollar market for Nigerian crude oil.

NNPC, however, disputed those claims, arguing that Dangote had failed to present credible and verifiable evidence demonstrating that it could independently guarantee Nigeria’s fuel supply.

The legal dispute has since expanded following an application by the NMDPRA to join the proceedings, transforming the case into a broader challenge over Nigeria’s fuel import policy and the regulation of the downstream petroleum sector.

Dangote also alleged that the NMDPRA, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and NNPC have created a hostile operating environment by continuing to issue import licences despite what it described as the absence of any domestic fuel supply shortfall.

The refinery further accused NNPC of failing to supply it with adequate crude oil, claiming it receives only about five crude cargoes monthly instead of the 13 cargoes required to operate at full capacity, forcing it to source crude from the international market at higher costs.

NNPC denied the allegation, insisting that crude oil allocation is based on operational, commercial, security and logistical considerations, rather than any attempt to frustrate Dangote Refinery’s operations.

The company warned that restricting fuel import licences could expose Nigeria to supply disruptions, price volatility and threats to national energy security.

Dangote, however, maintained that continued fuel imports would undermine local refining, discourage investment and frustrate Nigeria’s long-term objective of achieving energy self-sufficiency.

As part of its reliefs, the refinery is seeking an interim injunction restraining the Attorney-General of the Federation and the relevant regulatory agencies from issuing or renewing import licences for Premium Motor Spirit (PMS), Automotive Gas Oil (AGO) and Jet A1 pending the determination of the suit, arguing that it would suffer irreparable financial and operational losses if the licences continue to be issued.

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