The Nigerian National Petroleum Company (NNPC) Limited has accused Dangote Petroleum Refinery of attempting to monopolise Nigeria’s fuel market, firing back in court against the refinery’s lawsuit seeking to void import licences granted to rival marketers.
In a proposed defence filed before the Federal High Court in Lagos, NNPC argued that granting Dangote’s request would undermine competition, expose Nigeria to supply disruptions, price instability, and threaten the country’s energy security.
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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has also applied to join the case, according to a Reuters report.
The lawsuit was filed less than a month ago by Dangote Petroleum Refinery against the Attorney-General of the Federation, challenging import licences issued to oil marketers and NNPC. The refinery argues that the Petroleum Industry Act (PIA) was designed to encourage domestic refining, and that continued imports undermine that goal.
What NNPC Is Arguing
NNPC’s defence rests on three main points.
First, the state oil company argues that the PIA does not impose an outright ban on fuel imports. Rather, it says the law permits licences to be issued to companies with local refining licences or established records in international crude oil and petroleum products trading — and that regulators retain the discretion to manage imports under Nigeria’s backward integration policy.
Second, NNPC contends that Dangote Refinery has failed to provide what it described as “credible, independent or verifiable evidence” that it can consistently meet Nigeria’s total fuel demand and guarantee uninterrupted nationwide supply. This is a significant challenge to the refinery’s central claim — that domestic production is sufficient to justify halting imports.
Third, NNPC denied allegations that it deliberately frustrated Dangote’s operations or withheld crude oil supplies from the facility, saying allocations are determined by operational, commercial, security, and logistical considerations.
Fuel marketers have filed a similar opposition, warning that restricting import licences would weaken market competition and threaten fuel supply stability across the country.
A Battle With a Long History
This is not the first time Dangote Refinery has gone to court over import licences. In September 2024, the refinery filed suit number FHC/ABJ/CS/1324/2024, seeking N100 billion in damages against the NMDPRA for issuing import licences to six marketers — including NNPC, Matrix Petroleum Services, AYM Shafa, A.A. Rano, T. Time Petroleum, and 2015 Petroleum.
The refinery argued the licences violated Sections 317(8) and (9) of the PIA. The marketers countered that they were fully qualified to hold those licences and that Dangote was attempting to monopolise the sector. In July 2025, Dangote quietly discontinued that lawsuit without explanation.
The current dispute also carries echoes of an earlier feud between Aliko Dangote and former NMDPRA chief Farouk Ahmed, who consistently resisted moves he believed would give the refinery monopoly control over supply. Dangote later accused Ahmed of corruption and alleged he was colluding with international traders to frustrate local refining. Ahmed resigned amid the controversy.
What Comes Next
The court is expected to hear the matter in the coming weeks. The stakes are considerable. Beyond the immediate legal arguments, the case arrives ahead of Dangote Refinery’s planned initial public offering in September, raising questions about the refinery’s future revenue outlook and its relationship with the broader market.
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For now, both sides have drawn clear lines. Dangote says the law is on its side. NNPC says the evidence is not.
Philip Ibitoye is a Special Correspondent with EKO HOT BLOG. Click here to find daily analysis and critical insight on trending issues in Lagos and other parts of Nigeria.
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