NNPC accuses Dangote Refinery of seeking fuel market monopoly

Business

LAGOS, Nigeria (Agency Report) — The Nigerian National Petroleum Company (NNPC) Limited has accused the Dangote Petroleum Refinery of attempting to monopolise Nigeria’s fuel market through a legal challenge against fuel import licences issued to rival marketers, according to a Reuters report on Friday.

Reuters reported that court documents filed by NNPC at the Federal High Court in Lagos argued that granting Dangote Refinery’s request to void or restrict import permits could expose Nigeria to supply disruptions, fuel price instability, and broader national energy security risks.

The legal dispute centres on a lawsuit filed in April by the Dangote Petroleum Refinery against the Attorney General of the Federation and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

According to Reuters, the refinery is challenging the issuance and renewal of fuel import licences granted to marketers and NNPC, arguing that such approvals undermine local refining and violate provisions of the Petroleum Industry Act (PIA).

However, NNPC rejected the claim, insisting that Nigerian law permits the issuance of import licences to companies with refining licences or established records in international crude oil and petroleum products trading.

The state oil company also argued that regulators possess discretionary powers to manage fuel imports under Nigeria’s backward integration policy and maintained that there is no outright ban on imports except in situations involving domestic supply shortfalls.

Reuters further reported that NNPC accused Dangote Refinery of failing to provide “credible, independent or verifiable evidence” that it could fully meet Nigeria’s fuel demand or guarantee an uninterrupted nationwide supply.

The NMDPRA has also reportedly applied to join the case, further widening the legal battle over fuel import policy and Dangote Refinery’s growing market position.

The dispute comes ahead of Dangote Refinery’s planned initial public offering (IPO) expected in September, raising concerns over future market regulations, fuel import competition, and investor confidence in the 650,000-barrel-per-day refinery project.

Reuters reported that Dangote Refinery declined to comment on the matter while the case remains before the court.

NNPC also denied allegations that it deliberately withheld crude oil supplies or sabotaged the refinery’s operations, stating that crude allocations were determined by operational, commercial, security, and logistical considerations.

The court is expected to hear the matter in the coming weeks, while fuel marketers have also reportedly opposed Dangote’s suit over fears that it could weaken competition and threaten supply security.

Source: Reuters