The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has strongly pushed back against a new lawsuit filed by Dangote Petroleum Refinery, warning that legal attempts to invalidate fuel import licences could trigger severe supply disruptions and kill competition in Africa’s largest oil market.

The friction intensified after Reuters reported that the $20 billion Dangote Refinery filed a fresh lawsuit against the Federal Government.

The suit challenges the import permits issued by the regulatory body, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to independent marketers and the state-owned Nigerian National Petroleum Company (NNPC).

Dangote argues that continuous importation undermines its domestic refining capacity and risks entrenching market inefficiencies, maintaining that the refinery can completely satisfy local fuel demands.

In a swift response issued on Sunday, DAPPMAN countered that the import licences are legal tools vital to national energy security, rather than mere “administrative courtesies.” The association emphasised that the Petroleum Industry Act (PIA) legally empowers the NMDPRA to grant these permits to prevent fuel scarcity.

“These licences exist to protect supply, not to disadvantage any single producer,” DAPPMAN stated. “We respect Dangote’s right to pursue legal remedies. What we do not accept is that a private refinery’s commercial interests should override a regulator’s mandate.”

The marketing group further warned that retroactively canceling active permits would destabilise the downstream sector, unfairly harming operators who have invested heavily in storage and logistics networks based on existing regulatory approvals.

While the Dangote Refinery, which commenced operations in 2024 is widely regarded as the cornerstone for ending Nigeria’s historic, multi-decade reliance on imported fuel, pricing and supply dynamics remain highly contentious.

DAPPMAN has confirmed it will engage legal counsel and authorities to ensure the Nigerian energy market remains open, competitive, and fair to multiple participants.

REUTERS