Home » Court Resumes Hearing on Dangote Suit Against Fuel Imports

Court Resumes Hearing on Dangote Suit Against Fuel Imports

by Iyabode Jane Aluko
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Dangote Refinery Approves 20 Marketers for PMS Purchases

The Federal High Court in Lagos on Thursday resumes hearing in a suit filed by Dangote Refinery seeking to invalidate fuel import licences issued to several petroleum marketers, amid concerns over the legal status of about 830,000 metric tonnes of petrol approved for importation in the fourth quarter of 2026.

The suit, FHC/L/CS/857/2026, is before Justice Chukwujekwu Aneke and was initially scheduled for October 7 after the judge was unavailable at the previous sitting. It is now listed for hearing on October 8.

Dangote Refinery is asking the court to set aside import licences allegedly issued or renewed around May 6, 2026, in favour of NNPC Ltd, NIPCO, A.A Rano, Matrix Energy, Shafa, Pinnacle and Bono.

The refinery argues that the licences were issued in breach of an April 29 order directing parties to maintain the status quo as of April 2, 2026.

Dangote is also relying on Section 317(9) of the Petroleum Industry Act, which provides for petroleum product imports where there is a proven shortfall in domestic supply. The refinery maintains that its 650,000 barrels-per-day capacity is sufficient to meet domestic demand.

The legal dispute comes after the Nigerian Midstream and Downstream Petroleum Regulatory Authority renewed petrol import licences totalling 830,000 metric tonnes for six companies last week for the fourth quarter.

The regulator cited tightening inventories and a decline in Dangote Refinery’s capacity utilisation, which fell from 101.36 per cent in June to 71.09 per cent in July due to maintenance.

NMDPRA said the approvals were intended to prevent projected fuel shortages.

The Q4 approvals followed a separate ruling by the Federal High Court in Abuja in a suit filed by petroleum marketers, including A.A Rano, which directed NMDPRA to issue import licences.

The marketers told the Abuja court that they had invested more than $20 billion in infrastructure and that sporadic licensing since July 2025 was creating a monopoly.

Their counsel, Raji Ahmed, SAN, argued that allowing both imports and domestic production would promote competition and help prevent price fixing.

The two rulings have created a legal overlap involving two Federal High Courts of coordinate jurisdiction, with the Lagos case challenging licences issued or renewed in circumstances that Dangote says breached the April 29 status quo order.

The outcome of Thursday’s proceedings could also affect petrol cargoes already on the water under licences issued after May 6, particularly if the Lagos court grants an interim order restricting their discharge.

NNPC’s position in the Lagos case is that the Petroleum Industry Act and the Backward Integration Policy permit imports where necessary to guarantee adequate fuel supply.

The 830,000 metric tonnes approved for Q4 is equivalent to about 1.1 billion litres of petrol. At an estimated landing cost of N1,100 per litre, the consignment represents products worth about N1.21 trillion.

The legal proceedings could therefore have significant implications for petroleum marketers, importers and the domestic fuel supply chain, depending on the court’s decision.

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