NNPC Tells Court: Dangote Refinery Is Trying to Create a Fuel Monopoly

The Nigerian National Petroleum Company (NNPC) has told a federal court that Dangote Petroleum Refinery is trying to lock down Nigeria’s fuel market, warning that granting the refinery’s request to void rival import licences would leave the country exposed to supply shocks and price instability.

How We Got Here

Dangote Petroleum Refinery sued the federal government over import licences issued to rival fuel marketers. The 650,000-barrels-per-day plant argues that licences granted to companies like NIPCO, AA Rano, Matrix, Shafa, Pinnacle, and Bono undermine its operations and violate the Petroleum Industry Act, which it says permits fuel imports only when domestic supply falls short.

NNPC disagrees. In a defence filing at the Federal High Court in Lagos, the state oil company said the law allows import licences for companies with local refining licences or proven international trading records. It said regulators have discretion under Nigeria’s backwards-integration policy and that there is no blanket ban on imports outside of domestic shortfalls.

NNPC also challenged Dangote’s core claim, saying the refinery has not provided “credible, independent or verifiable evidence” that it can meet Nigeria’s total fuel demand or guarantee uninterrupted supply nationwide.

Others Weigh In

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has applied to join the case, broadening what is now a full-blown legal fight over import policy and market control.

Fuel marketers under the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) have separately opposed Dangote’s suit, arguing it would crush competition and threaten supply security.

NNPC also denied accusations that it sabotaged the refinery or deliberately withheld crude supplies, saying allocations depend on operational, commercial, security, and logistical factors.

What’s at Stake

If Dangote wins, it would effectively hand the refinery near-total control over domestic fuel supply — a prospect that has marketers and regulators worried. The case also casts a shadow over Dangote’s planned September IPO for the refinery business, adding uncertainty about market rules and the revenue picture investors will see.

The Federal High Court in Lagos has scheduled a hearing in the coming weeks. Whatever the outcome, it will shape how Nigeria’s downstream petroleum sector operates for years.

Sources: Business Post Nigeria, Punch