NNPC Fights Dangote Over Fuel Market Monopoly
The Nigerian National Petroleum Company Limited (NNPCL), has accused the Dangote Petroleum Refinery of attempting to monopolise the country’s fuel market through a lawsuit seeking to restrict fuel import licences granted to rival marketers.
Court documents show that the NNPC, in a proposed defence filed before the Federal High Court in Lagos State, argued that granting Dangote Refinery’s request to void or limit import permits issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority would expose the country to fuel supply disruptions, price instability and threats to national energy security.
Dangote Petroleum Refinery had, in April, dragged Nigeria’s Attorney General to court, challenging fuel import licences issued or renewed by the NMDPRA to fuel marketers and the NNPC.
The refinery argued that the import permits undermine local refining efforts and violate provisions of the Petroleum Industry Act (PIA), which was introduced to reform Nigeria’s oil and gas sector.
However, the NNPC countered the claims, insisting that Nigerian law permits the issuance of import licences to companies with local refining licences or firms with established records in international crude oil and petroleum products trading.
The oil company further argued that regulators retain discretionary powers to manage fuel imports under Nigeria’s backward integration policy and that there is no absolute ban on fuel imports except where there is proven sufficiency in local supply.
According to the court filings cited by Reuters, the NNPC also faulted Dangote Refinery for allegedly failing to provide “credible, independent or verifiable evidence” proving it can satisfy Nigeria’s nationwide fuel demand without interruption.
The NNPC additionally denied allegations that it deliberately frustrated Dangote Refinery’s operations or withheld crude oil supplies from the company.
It maintained that crude oil allocations are determined by operational, commercial, security and logistical considerations.
Dangote Refinery declined to comment on the matter, citing the ongoing legal proceedings.
Fuel marketers are also said to have opposed Dangote’s lawsuit, warning that restricting imports could weaken competition and threaten fuel supply stability across the country.
The Federal High Court is expected to hear the case in the coming weeks.
