The Nigerian National Petroleum Company Limited (NNPC Limited) has accused the Dangote Petroleum Refinery of attempting to dominate Nigeria’s downstream petroleum sector through ongoing litigation challenging fuel import licences issued to marketers and the national oil firm.
The allegation was contained in court filings before the Federal High Court in Lagos, where NNPC argued that granting the refinery’s request to cancel or restrict import permits could weaken competition, destabilise fuel supply, and threaten national energy security.
The dispute stems from a suit filed by the Dangote Petroleum Refinery against the Attorney-General of the Federation, in which the company is seeking to invalidate import licences issued to oil marketers and the NNPC.
In response, NNPC maintained that Nigeria’s regulatory framework allows qualified companies to import petroleum products and that there is no legal basis for granting a single refinery exclusive control of supply.
The state oil firm also warned that restricting import licences could expose the country to fuel shortages and price instability, especially as domestic refining capacity is still developing.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (Nigerian Midstream and Downstream Petroleum Regulatory Authority) has reportedly applied to join the case, further expanding the legal contest over fuel import policy.
At the centre of the dispute is the $20 billion Dangote Petroleum Refinery, a 650,000 barrels-per-day facility owned by Aliko Dangote, which has argued that continued issuance of import licences undermines local refining and contradicts provisions of the Petroleum Industry Act aimed at promoting domestic production.
NNPC, however, countered that regulators retain discretion under national policy to approve imports when necessary and that domestic output alone has not yet fully met national demand.
The company also dismissed allegations that it deliberately obstructed crude oil supply to the refinery, stating that allocations are guided by operational, commercial, and security considerations.
Fuel marketers joined the debate, warning that limiting import licences could reduce competition and threaten supply stability across the country.
The legal dispute has also revived broader tensions in Nigeria’s downstream sector, where successive regulators have resisted moves that could grant monopoly control to a single refinery.
The disagreement has previously led to a public feud involving Dangote and former regulator Farouk Ahmed, who later left office amid controversy over import licensing and regulatory independence.
In an earlier related suit, Dangote Refinery had sought damages and a court declaration that import licences issued to marketers violated the Petroleum Industry Act, arguing that such permits should only apply when local supply is insufficient.
Marketers and regulators, however, maintained that competition is essential for market stability and that multiple suppliers are necessary to ensure uninterrupted fuel availability nationwide.
Although Dangote Refinery later discontinued one of its earlier cases in 2025, the current litigation signals that the broader policy dispute over fuel importation and domestic refining remains unresolved.
The outcome of the case is expected to shape Nigeria’s downstream petroleum structure, particularly as the Dangote Refinery continues to scale operations and the country balances domestic production with continued import reliance.
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