The Nigerian National Petroleum Company Limited (NNPC Ltd) has accused Dangote Petroleum Refinery of seeking to restrict competition and expose the country’s fuel market to monopoly control.
This statement was made in court documents filed at the Federal High Court in Lagos.
Dangote Refinery sued in April 2026, challenging the renewal of fuel import licences granted by regulators to rival marketers, including NNPC.
The refinery argues that such imports violate the Petroleum Industry Act (PIA) when local refining capacity exists, and undermine domestic production efforts.
In its defence, NNPC countered that granting Dangote’s requests to void or restrict these licences would expose Nigeria Africa’s largest oil producer to supply disruptions, price instability, and risks to national energy security.
According to the documents, NNPC stated that Dangote had not provided “credible, independent or verifiable evidence” that the refinery could meet Nigeria’s total fuel demand or guarantee uninterrupted nationwide supply.
This legal dispute comes after the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had previously suspended the issuance of fresh petrol import permits in February and March 2026.
The regulator took this step because local refining output had improved substantially and was deemed sufficient to meet domestic needs.
In a report, NMDPRA data showed Dangote Refinery supplied about 36.5 million litres of petrol daily in February 2026, accounting for more than 90 per cent of domestic consumption, while imports fell to about three million litres daily the lowest level in a year.
The authority cited this sufficiency as the reason for not renewing import licences at the time.
However, imports resumed later, prompting Dangote’s legal challenge.
In April 2026, Dangote supplied approximately 40.7 million litres per day, while Nigeria’s daily fuel requirement stands at around 51.1 million litres. NNPC maintains that imports remain necessary to bridge this shortfall and ensure stable supply.
NNPC holds a 7.25% equity stake in the facility and has been involved in crude supply arrangements.
Dangote has previously rejected monopoly allegations and even offered to sell the refinery to NNPC at one point to address such concerns.
As the court prepares to hear arguments, the outcome will likely influence Nigeria’s downstream oil sector for years. It will determine whether the Dangote Refinery solidifies its role as a cornerstone of energy independence or sparks further debates on market dominance.
Administrator and Writer
