FUEL WAR: NNPC accuses Dangote Refinery of plotting market monopoly
The legal battle over Nigeria’s fuel market has intensified as the Nigerian National Petroleum Company Limited (NNPC) accused the Dangote Petroleum Refinery of attempting to monopolize the sector.
The state oil firm warned that restricting competition could trigger severe energy insecurity across the country.
In a proposed defense filed at the Federal High Court in Lagos, the NNPC argued that granting Dangote’s request to void or restrict import permits would expose Africa’s largest oil producer to widespread fuel supply disruptions, severe price instability, and major risks to national energy security
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has also applied to join the suit, further widening the high-stakes legal battle over the country’s import policy.
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The dispute began in April when the Dangote Petroleum Refinery filed a lawsuit against Nigeria’s Attorney General and the NMDPRA. The refinery is challenging the fuel import licenses issued or renewed for independent marketers and the NNPC.
Dangote Refinery argues that issuing import licenses to third parties undermines local refining capacity and directly violates the provisions of Nigeria’s Petroleum Industry Act (PIA).
The NNPC has firmly rejected Dangote’s arguments, countering that the PIA permits the issuance of import licenses to companies with local refining licenses or proven track records in international crude and petroleum-product trading.
According to the NNPC’s court filing, regulators retain the discretion to manage imports under Nigeria’s backward-integration policy. It maintains that the law does not mandate a blanket ban on imports unless there is a domestic shortfall.
The state oil firm claimed that Dangote had failed to provide “credible, independent, or verifiable evidence” that the 650,000-barrel-per-day refinery could meet Nigeria’s total fuel demand or guarantee an uninterrupted nationwide supply.
Additionally, the NNPC denied allegations that it had sabotaged the multi-billion-dollar refinery or deliberately withheld crude oil, stating that crude allocations are strictly dependent on operational, commercial, security, and logistical factors.
This escalating legal battle comes at a critical time for the refinery, which is planning an Initial Public Offering (IPO) of its refinery business by September.
Market analysts note that the lawsuit introduces fresh uncertainty surrounding market rules, import competition, and the eventual revenue outlook that investors may assign to the mega-refinery.
When contacted, representatives for the Dangote Group declined to comment, citing the ongoing court proceedings.
