Lydia Bello
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has strongly opposed a fresh lawsuit filed by Dangote Petroleum Refinery seeking to invalidate fuel import licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), escalating tensions over control of Nigeria’s downstream petroleum market.
In a statement issued on Sunday, DAPPMAN argued that the import licences being challenged are lawful instruments issued under Nigeria’s Petroleum Industry Act (PIA) to safeguard national fuel supply and maintain market stability.
The dispute marks the latest phase in the intensifying battle over fuel importation and market dominance following the launch of operations at Dangote’s 650,000 barrels-per-day refinery, Africa’s largest refining facility.
Dangote Pushes for Reduced Fuel Imports
Since commencing local fuel supply operations, Dangote Refinery has repeatedly argued that continued issuance of petrol import licences undermines domestic refining investments, weakens incentives for local production, and perpetuates Nigeria’s reliance on imported petroleum products despite growing local refining capacity.
The refinery had previously challenged the regulator in court over permits granted to several marketers, insisting that the PIA only allows imports in situations where domestic supply is insufficient. That earlier case was later withdrawn.
However, petroleum marketers and industry stakeholders maintain that the PIA gives the regulator broad authority to issue import licences whenever necessary to guarantee energy security, competition, and uninterrupted nationwide fuel distribution.
Marketers Defend Regulatory Authority
DAPPMAN insisted that the NMDPRA acted within its statutory powers and stressed that the regulator’s mandate is to ensure consistent fuel availability for Nigerian consumers rather than protect the commercial interests of any single refinery.
According to the association, its members have invested billions of naira in petroleum depots, logistics infrastructure, and compliance systems based on the understanding that their operating licences are legally valid and protected under Nigerian law.
“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 warned that any attempt to retroactively invalidate those approvals could destabilise the downstream petroleum sector at a critical time for Nigeria’s energy market.
Industry Warns Against Monopoly Concerns
While acknowledging Dangote Refinery’s right to seek legal remedies, the association rejected what it described as efforts to place a private refinery’s commercial interests above the statutory responsibilities of the regulator.
The group further warned against the emergence of monopoly conditions in Nigeria’s fuel market, arguing that the downstream sector has evolved into a multi-player system serving millions of consumers daily.
“Nigeria’s fuel market is not a monopoly waiting to happen. It is a competitive, multi-participant market that has taken years to build,” DAPPMAN said.
The association added that reducing the number of market participants could weaken competition, increase supply vulnerabilities, and ultimately hurt Nigerian consumers through higher risks to fuel availability.
Legal and Economic Implications
The latest court battle highlights broader questions surrounding Nigeria’s post-subsidy petroleum market reforms, the implementation of the Petroleum Industry Act, and the balance between protecting local refining investments and maintaining open market competition.
Industry analysts say the outcome of the dispute could significantly influence investment confidence, fuel pricing dynamics, and the structure of Nigeria’s downstream petroleum industry in the coming years.
DAPPMAN confirmed that it would engage legal counsel and coordinate with affected member companies to defend the validity of the import licences and protect the interests of operators across the downstream sector.
“Our members did not build this industry to watch it be argued out of existence in a courtroom,” the association stated.