LAGOS, Nigeria — The Nigerian National Petroleum Company Limited has accused Dangote Petroleum Refinery of attempting to restrict competition in the country’s fuel market by challenging import licences issued to rival marketers.
The allegation was contained in court filings submitted at the Federal High Court in Lagos, where Dangote Refinery is seeking to overturn fuel import licences granted to NNPC and other oil marketers. According to Reuters, NNPC argued that granting Dangote’s request could expose Nigeria’s downstream petroleum sector to monopoly control, disrupt fuel supply and threaten national energy security.
Dangote Refinery, Africa’s largest refinery with a nameplate capacity of 650,000 barrels per day, filed the lawsuit against the Attorney General of the Federation and the Nigerian Midstream and Downstream Petroleum Regulatory Authority. The company argues that the issuance of import licences undermines local refining, violates the Petroleum Industry Act and weakens Nigeria’s push to end dependence on imported refined petroleum products.
NNPC rejected the claim, insisting that the law allows import licences to be issued to qualified companies with refining capacity or a record of petroleum-product trading. It also argued that there is no blanket ban on fuel imports and that Dangote had not provided sufficient proof that its refinery alone could meet national demand reliably.
The case has deepened tensions in Nigeria’s downstream oil sector, where Dangote Refinery’s entry was expected to reduce costly imports and improve domestic supply. However, marketers say the country still needs multiple supply sources to avoid shortages, price shocks and dependence on a single dominant supplier.
The Depot and Petroleum Products Marketers Association of Nigeria has also opposed Dangote’s suit, saying import licences remain lawful and necessary for supply stability. The group warned that cancelling the permits could destabilise businesses that have invested heavily in the downstream sector and weaken competition.
Dangote Refinery has previously accused regulators and importers of frustrating local refining by allowing imported fuel into the market. Its supporters argue that Nigeria should prioritise domestic production to conserve foreign exchange, create jobs and strengthen energy security.
But opponents say local refining must not come at the cost of market competition. They argue that a single refinery, no matter how large, should not control supply or pricing in a country where fuel availability has major economic and political consequences.
The legal dispute is ongoing and is expected to shape the future of Nigeria’s fuel market, including how the government balances support for domestic refining with competition, consumer protection and national supply security.
