Fuel marketers in Nigeria have pushed back against a legal challenge filed by Dangote Petroleum Refinery seeking to invalidate fuel import licences, warning that the case could disrupt supply chains and weaken competition in Africa’s largest oil market.

The dispute highlights growing tensions between domestic refining ambitions and established fuel importers in Nigeria, where deregulation of the downstream petroleum sector has opened space for both local production and imports.

According to industry stakeholders, the fuel marketers argue that maintaining import licences is essential to ensure market stability and prevent supply shortages, especially in periods when local refining capacity is still ramping up.

They warn that restricting or cancelling import licences could concentrate supply in the hands of a few players, potentially increasing prices and reducing competition in the downstream sector.

Dangote Petroleum Refinery, which operates Africa’s largest single-train refinery, has sought legal intervention to challenge the continued issuance of import licences, arguing that local refining should be prioritised to support domestic production and reduce reliance on imports.

The case underscores ongoing structural adjustments in Nigeria’s petroleum sector following recent reforms aimed at liberalising fuel pricing and encouraging private investment.

Nigeria, Africa’s most populous country, remains heavily dependent on fuel imports despite the commissioning of new domestic refining capacity, including the massive Dangote facility.

The court has yet to rule on the matter, which is being closely watched by investors and energy stakeholders across the region.