Femi Ashekun/
The Nigerian National Petroleum Company (NNPC) Limited has accused Dangote Petroleum Refinery of attempting to establish a monopoly in the country’s downstream petroleum sector through a legal challenge seeking to restrict fuel import licences issued to rival marketers.
The accusation emerged in court filings submitted before the Federal High Court in Lagos, where NNPC argued that granting Dangote’s request to cancel or limit fuel import permits could expose Nigeria to supply disruptions, fuel scarcity, unstable pump prices and broader risks to national energy security.
The legal confrontation marks a significant escalation in tensions between Africa’s largest refinery and the state oil firm at a time when Nigeria’s fuel supply structure is undergoing one of its biggest transformations in decades.
According to court documents, Dangote Refinery filed the suit in April against Nigeria’s Attorney General and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) challenging licences granted or renewed for fuel importation to NNPC and several petroleum marketers.
Dangote argued that the continued issuance of import licences undermines domestic refining and contradicts provisions of the Petroleum Industry Act, which it said permits imports only where local production cannot sufficiently meet national demand.
In its proposed defence, however, NNPC rejected those claims and maintained that Nigerian law allows the regulator discretion to issue import licences to companies with refining capacity or proven records in petroleum trading.
The company further argued that there is no absolute legal prohibition on fuel imports under Nigeria’s backward integration policy.
NNPC also challenged Dangote’s assertion that its refinery alone can guarantee uninterrupted nationwide fuel supply, telling the court that the company had failed to provide “credible, independent or verifiable evidence” proving it could consistently meet Nigeria’s total petrol demand.
The NMDPRA has now applied to join the proceedings, widening what is increasingly becoming a landmark dispute over market control, import policy and the future structure of Nigeria’s downstream oil sector.
The dispute comes at a sensitive period for Dangote Refinery, which is reportedly preparing for a planned public listing of its refinery business later this year.
The litigation could raise investor concerns over regulatory uncertainty, competition rules and long term revenue projections for the 650,000 barrel per day facility.
The refinery began operations in 2024 and has since become central to Nigeria’s efforts to reduce dependence on imported refined petroleum products.
With a refining capacity larger than Nigeria’s domestic fuel demand, the plant was expected to help stabilise supply and reduce pressure on foreign exchange.
However, the battle over imports has exposed deeper disagreements within the sector over pricing, competition and supply security.
Fuel marketers have also opposed Dangote’s suit, warning that restricting imports could weaken competition and leave the country vulnerable if there are operational disruptions at the refinery.
The Depot and Petroleum Products Marketers Association of Nigeria reportedly argued that import licences remain essential for maintaining market stability and protecting investments in the downstream sector.
NNPC additionally denied allegations that it had sabotaged Dangote Refinery or deliberately withheld crude oil supplies from the facility.
The company stated that crude allocation decisions were based on operational, security, commercial and logistical realities.
The Federal High Court is expected to hear the matter in the coming weeks in a case that could significantly shape the future of Nigeria’s petroleum market and determine how far the country is willing to go in balancing local refining ambitions with market competition.
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