NNPC, Marketers Clash With Dangote Over Fuel Imports, Warn Against Monopoly Control
The Nigerian National Petroleum Company Limited and petroleum marketers have opposed moves by the Dangote Petroleum Refinery to stop fuel importation into Nigeria, warning that such a move could create monopoly control in the downstream petroleum sector and threaten the country’s energy security.
The opposition was contained in a counter-affidavit filed by the NNPC before the Federal High Court in Lagos in response to a suit instituted by Dangote Petroleum Refinery and Petrochemicals FZE.
In the suit marked FHC/L/CS/857/2026, the refinery challenged the issuance of petrol import licences by the Nigerian Midstream and Downstream Petroleum Regulatory Authority to fuel marketers and the NNPC, arguing that continued importation undermines local refining capacity.
Dangote refinery had asked the court to void the import permits, claiming they violate existing regulations and an earlier court order to maintain the status quo.
The refinery also accused the NNPC and other agencies of frustrating its operations through crude oil supply constraints and continued reliance on imported petroleum products despite its production capacity.
However, in its response, the NNPC urged the court to dismiss the suit, describing it as premature, incompetent, and an abuse of court process.
The national oil company argued that Dangote refinery’s petroleum products are already sold at “significantly high and fluctuating market prices” driven by commercial considerations.
According to the NNPC, granting the refinery’s requests could hand it excessive control over Nigeria’s fuel supply chain and weaken market competition.
“The reliefs sought by the plaintiff are aimed at substantially restricting or eliminating other participants within the petroleum importation and supply chain,” the affidavit stated.
“The grant of the plaintiff’s reliefs would effectively expose Nigeria’s petroleum sector to monopoly control and undermine competitive participation within the industry.”
The NNPC further argued that there was no independently verified evidence showing the refinery could single-handedly meet Nigeria’s nationwide petroleum demand without supply disruptions.
It maintained that fuel supply obligations involve more than refining capacity, stressing that logistics, storage, transportation, product evacuation, strategic reserves, and nationwide distribution remain critical components of energy security.
The company warned that relying on a single operator for fuel supply could expose Nigeria to severe shortages and economic instability in the event of operational disruptions at the refinery.
“Restricting importation channels in the manner sought by the plaintiff would expose Nigeria to severe risks of petroleum shortages, supply disruptions, price instability, distribution failures, and national energy crises,” the affidavit added.
The NNPC also denied allegations that it deliberately frustrated Dangote refinery’s operations or denied it crude oil supplies, insisting that crude allocation is influenced by operational realities, commercial arrangements, security concerns, and contractual obligations.
The company further defended the continued issuance of import licences by regulators, arguing that the Petroleum Industry Act does not impose an outright ban on fuel importation.
According to the NNPC, Section 317(8) of the Petroleum Industry Act merely gives regulators discretionary powers regarding backward integration policy and does not prohibit the importation of petroleum products.
The dispute has drawn support from petroleum marketers under the Petroleum Products Retail Outlet Owners Association of Nigeria, who backed the NNPC’s position and warned against allowing monopoly control in the downstream sector.
PETROAN National President, Billy Gillis-Harry, said competition remains essential for ensuring product availability, price moderation, efficiency, and sustainability in Nigeria’s fuel distribution chain.
He stressed that no single operator, regardless of investment size or refining capacity, should dominate the market at the expense of healthy competition.
According to him, an open and competitive downstream market would help prevent supply shocks, artificial scarcity, and exploitative pricing.
Gillis-Harry acknowledged the massive investment made by Dangote refinery and its contribution to local refining and job creation but maintained that multiple supply channels remain necessary for market stability and national energy security.
He added that one of the major benefits of competition in the sector is lower fuel prices through competitive pricing mechanisms.
The legal battle marks another major confrontation between Dangote refinery and government oil agencies since the commencement of operations at the Lekki-based refinery.
The disagreement is rooted in broader concerns over fuel importation, crude oil supply arrangements, implementation of the Petroleum Industry Act, and control of Nigeria’s deregulated downstream oil market following the removal of petrol subsidy in 2023.
While Dangote refinery has repeatedly pushed for stronger protection for local refiners and restrictions on imports, regulators and marketers insist that Nigeria still requires multiple supply sources due to distribution challenges, strategic reserve obligations, and uncertainties surrounding nationwide fuel consumption.