NNPC accuses Dangote Refinery of seeking fuel market monopoly in court battle
The Nigerian National Petroleum Company Limited (NNPC Ltd) has accused Dangote Petroleum Refinery of attempting to monopolise Nigeria’s downstream petroleum sector through its legal challenge against fuel import licences issued to rival marketers.
In court filings submitted before the Federal High Court in Lagos, the state-owned oil company argued that granting Dangote Refinery’s request to revoke or restrict import permits would weaken competition and expose the country to major supply and pricing risks.
NNPC stated that such a move could lead to “price instability,” supply disruptions and broader threats to Nigeria’s energy security.
The filings were submitted in response to a lawsuit filed by Dangote Petroleum Refinery against the Attorney-General of the Federation over the continued issuance of fuel import licences to marketers and traders.
According to Reuters, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has also applied to join the suit, further escalating the dispute over Nigeria’s fuel import policy.
The legal confrontation comes weeks after Dangote Refinery instituted fresh court action seeking to overturn import licences granted to several marketers, including the NNPC.
The refinery argued that the import permits undermine local refining efforts and violate provisions of the Petroleum Industry Act (PIA), which it said was enacted to encourage domestic refining capacity and reduce dependence on imported petroleum products.
However, NNPC rejected the claims, insisting that the law allows regulators to issue import licences to qualified companies involved in petroleum trading or holding local refining licences.
In its defence, NNPC said Dangote Refinery failed to provide “credible, independent or verifiable evidence” demonstrating that it could consistently satisfy Nigeria’s fuel needs without interruptions.
The state oil company also denied allegations that it deliberately frustrated Dangote Refinery’s operations or restricted crude oil supply to the facility.
According to the court documents, crude allocations are based on “operational, commercial, security and logistical considerations.”
Dangote Refinery declined to comment on the matter, citing the ongoing court proceedings.
Background
Dangote Petroleum Refinery was established to reduce Nigeria’s dependence on imported fuel and boost local refining capacity. The 650,000 barrels-per-day facility, owned by Aliko Dangote, is Africa’s largest refinery. Its operations expanded after the administration of Bola Tinubu removed fuel subsidies in 2023, leading to higher petrol prices and major reforms in the downstream oil sector. The government also approved a 15 per cent import duty on petrol and diesel in 2025 to protect local refiners such as Dangote Petroleum Refinery and reduce reliance on imported products
