Oil Marketers Join Dangote Refinery N100bn Licence Suit

Three major oil marketers—Matrix Energy, AA Rano, and AYM Shafa—have applied to join Dangote Refinery's N100 billion lawsuit against the AGF over fuel import licences.

NGN Market

Written by NGN Market

·5 min read
Oil Marketers Join Dangote Refinery N100bn Licence Suit

Three major oil marketers—Matrix Energy, AA Rano, and AYM Shafa—have applied to join the N100 billion import licence suit filed by Dangote Refinery against the Attorney General of the Federation (AGF) at the Federal High Court in Lagos.

This application, dated June 16, 2026, seeks to include them as defendants in the ongoing legal dispute.

Dangote Petroleum Refinery's lawsuit aims to void all import licences issued or renewed by the AGF or the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The refinery is also requesting the court to “seal off all tank farms, storage facilities, warehouses and stations” used by licence holders for imported petroleum products, particularly when Nigeria is not experiencing a petroleum supply shortfall.

Marketers' Stance and Allegations

In their motion, filed by Ahmed Raji, SAN, and Sir Chris Ekemezie, the three marketers argue they are “necessary parties” for a complete determination of the case.

They assert that they, along with other licensed major oil marketers, have collectively invested more than $20 billion in infrastructure, logistics, and retail networks to support their licensed petroleum products businesses.

The applicants maintained that they have been licensed by the NMDPRA to import and distribute petroleum products into Nigeria for over two decades, predating Dangote Refinery's entry into the sector.

They allege that since commencing operations, Dangote Refinery has advocated for the cessation of petroleum product imports into Nigeria, citing calls by Aliko Dangote for refined petroleum products to be included on the Federal Government’s “Nigeria First” policy banned list.

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The marketers further claim that the pending action seeks to force competitors out of business and establish a monopoly, which they argue is expressly prohibited by the Petroleum Industry Act (PIA).

They also contend that granting the refinery’s prayers would have unquantified consequences for their businesses, employees, the oil and gas industry, and the Nigerian economy at large.

The applicants urged the court to consider the suit an abuse of court process, given the refinery’s earlier import licence suit was previously dismissed by the Federal High Court in Abuja.

Previous Legal Actions and Market Dynamics

In April 2026, Dangote Refinery filed an ex parte motion seeking an interim injunction to restrain the AGF and other government agencies, including the NMDPRA, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian National Petroleum Company (NNPC), from issuing or renewing import licences for petroleum products.

However, Justice C. J. Aneke of the trial court ordered all parties to maintain the status quo pending the determination of the Motion on Notice.

The refinery's Motion on Notice subsequently accused the NMDPRA of proceeding to issue import licences in what it described as an “active breach of the orders of the court.” The matter has been adjourned until October 7, 2026.

This legal development follows recent reports from the NMDPRA indicating a sharp decline in Nigeria’s petrol imports during the first quarter of 2026.

Petrol imports fell to approximately 965.52 million litres in Q1 2026, a 60.2% year-on-year decrease from an estimated 2.43 billion litres in Q1 2025.

Concurrently, supply from local refineries surged by 59.2%, rising from 1.996 billion litres in Q1 2025 to 3.179 billion litres in Q1 2026.

Domestic refineries accounted for roughly 76.7% of Nigeria’s total petrol supply in Q1 2026, a significant increase from 45.2% in the corresponding period of 2025.

Dangote Refinery argues in its court filing that the continued issuance of import licences contravenes Nigerian law, which permits fuel imports only when local supply is insufficient to meet demand.

This is not the first instance of Dangote Refinery challenging fuel import licences. In 2025, the refinery filed a similar suit seeking to nullify licences granted to NNPC Ltd, AYM Shafa Ltd, AA Rano Ltd, T. Time Petroleum Ltd, 2015 Petroleum Ltd, and Matrix Petroleum Services Ltd, also seeking N100 billion in damages.

However, in July 2025, Dangote Refinery unexpectedly withdrew that lawsuit, stating, “Take notice that the plaintiff herein discontinues this suit against the defendants forthwith.”

Nigeria has historically relied heavily on imported petrol due to the underperformance of state-owned refineries. The emergence of Dangote Refinery, Africa’s largest single-train refinery, has significantly altered the country’s fuel supply dynamics.

Tags:Energy

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