Marketers Oppose Dangote’s Lawsuit, Say Permit Cancellation Would Hurt Supply

Petroleum products depots and marketers have opposed Dangote Petroleum Refinery’s fresh court move to cancel fuel import licences, warning that any permit cancellation could disrupt supply in Nigeria’s downstream oil market.

Recall that Dangote, last week filed a new suit against the federal government, challenging licences issued to fuel marketers and the state-owned NNPC to import refined petroleum products.

The company, Reuters reported, said the permits undermined its $20 billion refinery and could prolong inefficiencies in the market.

But the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), said on Sunday that the licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority are legal tools needed to protect fuel supply.

It said the Petroleum Industry Act empowers the regulator to issue such permits where necessary to secure supply.

“These licences exist to protect supply, not to disadvantage any single producer,” DAPPMAN said in a statement.
The marketers warned that cancelling the permits after the fact could destabilise the downstream sector, especially since companies have already invested heavily in storage and logistics based on the approvals.

The group said it respects Dangote’s right to seek redress in court, but does not accept that a private refinery’s commercial interests should override the regulator’s mandate.

Nigeria has long depended on imported refined products despite being a major crude producer.

Dangote’s refinery, which began processing crude in 2024, is expected to reduce that dependence, but disputes over supply and pricing have continued.
DAPPMAN said it would consult legal counsel and relevant authorities, adding that the market should remain competitive and open to multiple players.