Dangote vs NMDPRA: Regulator Approves 830,000 Tonnes of Petrol Imports

The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has approved petrol import permits covering approximately 830,000 metric tonnes for several oil companies ahead of the fourth quarter of 2026.

The development was confirmed on Tuesday by George Ene-Ita, spokesperson for the petroleum regulator.

According to Ene-Ita, the approvals were granted to prevent possible fuel supply shortages during the final months of the year, when demand typically increases.

“Yes, petrol import permits were approved for Q4 2026 to ensure there are no supply gaps heading into the critical end-of-year period,” he said.

Companies reported to have received the approvals include Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Bono Energy.

The permits were reportedly issued on September 18, although the specific volumes allocated to each company were not immediately available.

The latest approvals come amid an ongoing legal dispute between Dangote Petroleum Refinery and the NMDPRA over the continued issuance of petrol import licences.

The development also comes against the backdrop of heightened tensions in the Middle East, which have disrupted global energy markets, pushed crude oil prices higher and raised concerns about the cost of petroleum products.

Dangote Refinery’s Legal Challenge

In May, Dangote Petroleum Refinery filed a fresh lawsuit against the Attorney-General of the Federation over petrol import licences issued to oil marketers and the Nigerian National Petroleum Company Limited (NNPC Ltd).

The refinery argued that the licences issued to certain marketers could undermine its operations and were inconsistent with provisions of the Petroleum Industry Act (PIA).

Dangote Refinery maintained that import licences should only be issued when domestic production is insufficient to meet the country’s petroleum demand.

Nigeria has historically relied heavily on imported petrol due largely to the poor performance of its government-owned refineries.

The $20 billion Dangote Refinery, owned by businessman Aliko Dangote, was established with the expectation that it would reduce Nigeria’s dependence on imported refined petroleum products by increasing domestic supply.

With an installed capacity of 650,000 barrels per day, the facility is Africa’s largest single-train refinery and was expected to significantly reduce the foreign exchange costs associated with petroleum imports.

However, petrol imports have continued as the refinery expands its production and distribution operations, with some industry stakeholders maintaining that domestic output has not yet fully covered national demand.

Since beginning operations in 2024, Dangote Refinery has repeatedly advocated for oil marketers to purchase petroleum products from domestic refineries rather than rely on imported supplies.

The former NMDPRA leadership, headed by Farouk Ahmed, resisted measures it viewed as potentially creating a monopoly in the downstream petroleum market.

The former regulator argued that allowing one refinery to dominate the market could weaken competition and create risks for Nigeria’s energy security.

The disagreement eventually developed into a public dispute between Dangote and Ahmed.

Dangote subsequently accused the former NMDPRA chief of corruption and alleged that the regulator was working with international traders and fuel importers to undermine domestic refining by continuing to approve import licences.

He also questioned aspects of Ahmed’s lifestyle and made allegations concerning the education of the former regulator’s children in Switzerland. Those claims became part of the wider controversy surrounding the NMDPRA under the former leadership.

Ahmed later resigned as chief executive of the regulatory authority.

Earlier Court Case

In 2024, Dangote Refinery filed a separate lawsuit, numbered FHC/ABJ/CS/1324/2024, seeking N100 billion in damages from the NMDPRA over the issuance of import licences to some oil marketers and the subsequent importation of petroleum products.

The companies named in that case included NNPC Ltd, Matrix Petroleum Services Limited, AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited and 2015 Petroleum Limited.

In the suit dated September 6, 2024, Dangote Refinery, through its lawyer, Ogwu Onoja, asked the Federal High Court to declare that the NMDPRA breached Sections 317(8) and 317(9) of the Petroleum Industry Act by approving licences for the importation of petroleum products.

The refinery argued that such licences should only be issued where domestic supply falls short of national requirements.

It also asked the court to declare that the NMDPRA had failed to fulfil its statutory obligation under the PIA to promote domestic refining.

However, in a counter-affidavit filed on November 5, 2024, the marketers, represented by Ahmed Raji (SAN), urged the court to dismiss the refinery’s claims.

They argued that competition was necessary for the Nigerian economy and petroleum industry, maintaining that they were legally qualified to obtain import licences under Section 317(9) of the PIA.

The defendants also accused Dangote Refinery of seeking to establish a monopoly by gaining exclusive control over the supply, distribution and pricing of petroleum products.

In July 2025, Dangote Refinery withdrew the lawsuit challenging the import approvals. The company did not publicly disclose why it discontinued the case.

Meanwhile, the refinery’s current legal challenge against the continued issuance of petrol import licences is scheduled for further hearing on October 7.

When asked on Tuesday about the latest development in the legal dispute, Ene-Ita declined to comment, citing the ongoing court proceedings.

“The Dangote case is still in court. I cannot say anything in a court case,” he said.