The Nigerian National Petroleum Company Limited has accused Dangote Petroleum Refinery of attempting to monopolise Nigeria’s fuel market through a fresh legal challenge against import licences granted to rival marketers.
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In court documents filed before the Federal High Court in Lagos, NNPC argued that granting Dangote Refinery’s request to void or restrict fuel import permits would undermine competition, threaten fuel supply stability, and expose the country to price instability and national energy security risks.
The position was contained in a proposed defence filed in response to a suit instituted by Dangote Petroleum Refinery against the Attorney-General of the Federation.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority has also applied to join the case, as the dispute broadens over Nigeria’s fuel import policy and the growing market influence of Dangote’s 650,000 barrels-per-day refinery.
Dangote Refinery had filed the suit seeking to overturn import licences granted to some oil marketers and the NNPC, arguing that the licences undermine local refining efforts and violate provisions of the Petroleum Industry Act, which it said was designed to promote domestic refining capacity.
However, NNPC rejected the claim, insisting that the law permits the issuance of import licences to companies with local refining licences or proven records in international crude oil and petroleum products trading.
The state oil company also argued that regulators have the discretion to manage fuel imports under Nigeria’s backward integration policy, adding that there is no outright ban on importation except where local production is sufficient to meet domestic demand.
According to NNPC, Dangote Refinery has not provided “credible, independent or verifiable evidence” that it can consistently meet Nigeria’s total fuel demand and guarantee uninterrupted nationwide supply.
NNPC also denied allegations that it deliberately frustrated the operations of Dangote Refinery or withheld crude oil supplies from the facility, saying crude allocations are determined by operational, commercial, security and logistical considerations.
Fuel marketers have also opposed Dangote’s suit, warning that any restriction on import licences could weaken competition and endanger nationwide supply stability.
The court is expected to hear the matter in the coming weeks.
The dispute comes ahead of Dangote Refinery’s planned initial public offering in September, raising fresh questions about market regulation, competition, energy security and the refinery’s future revenue outlook.
Since commencing operations in 2024, Dangote Refinery has consistently pushed for local marketers to prioritise petroleum products refined locally instead of relying on imports.
However, regulators and marketers have resisted any move they believe could create a monopoly in the downstream sector.
Under the former leadership of the NMDPRA, Farouk Ahmed had opposed policies that could allow a single refinery to dominate supply, insisting that such dominance could harm competition and weaken Nigeria’s long-term energy security.
The disagreement led to a public feud between Aliko Dangote and Ahmed. Dangote later accused the former regulator of corruption and alleged that the agency was colluding with international traders and fuel importers to frustrate local refining through continued issuance of import licences.
Ahmed later resigned following the controversy.
This is not the first time Dangote Refinery has challenged import approvals in court. In 2024, the refinery filed suit number FHC/ABJ/CS/1324/2024, asking the court to award ₦100 billion in damages against the NMDPRA for issuing import licences to some marketers and allowing the importation of petroleum products.
The marketers listed in that suit included NNPC Ltd, Matrix Petroleum Services Limited, AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited and 2015 Petroleum Limited.
In the suit dated September 6, 2024, Dangote Refinery asked the court to declare that the NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act by issuing licences for the importation of petroleum products.
The refinery argued that such licences should only be issued where there is a petroleum product shortfall.
It also asked the court to declare that the regulator failed in its statutory duty to encourage local refineries.
But the marketers, in a counter-affidavit filed by Ahmed Raji, SAN, asked the court to dismiss the claims, insisting that competition is essential to the health of Nigeria’s economy and the viability of the oil sector.
They argued that they were qualified to receive import licences under Section 317(9) of the PIA and accused Dangote Refinery of attempting to monopolise petroleum supply, distribution and pricing.
In July 2025, Dangote Refinery quietly discontinued that earlier lawsuit without publicly stating its reasons.
For decades, Nigeria has relied heavily on imported petrol due to the poor performance of state-owned refineries. The $20 billion Dangote Refinery, Africa’s largest single-train refinery, was expected to reduce that dependence by supplying refined petroleum products locally and easing pressure on foreign exchange.
However, petrol imports have continued as the refinery ramps up production and distribution capacity, while marketers insist that domestic output has not yet fully met national demand.
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