The Nigerian National Petroleum Company Limited (NNPC Ltd) has accused Dangote Petroleum Refinery of attempting to establish a monopoly in Nigeria’s fuel market. This accusation stems from a lawsuit initiated by Dangote challenging fuel import licences granted to various rival marketers. In court documents, NNPC Ltd argued that if Dangote’s request to void or restrict these permits were granted, it would severely undermine competition, expose Nigeria to significant supply disruptions, create price instability, and threaten national energy security.

This position was detailed in a proposed defence filed by the state oil company before the Federal High Court in Lagos, in direct response to a suit instituted by Dangote Petroleum Refinery against the Attorney-General of the Federation. Reuters has reported that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has applied to join the case, indicating the broader implications of the dispute. This legal challenge follows less than a month after Dangote Petroleum Refinery filed a separate lawsuit against Nigeria’s Attorney-General, seeking to overturn fuel import licences issued to oil marketers and NNPC itself. This exchange of lawsuits has intensified the battle over Nigeria’s fuel import policy and the substantial market influence of Dangote’s 650,000 barrels-per-day refinery, particularly as it approaches its planned initial public offering (IPO) in September, raising concerns over market regulation, competition, and the refinery’s future revenue.

In its lawsuit against the government, Dangote Refinery contended that the licences issued to rival marketers were detrimental to local refining efforts and violated specific provisions of the Petroleum Industry Act (PIA). According to Dangote, the PIA was specifically designed to encourage and bolster domestic refining capacity. However, NNPC Ltd has firmly rejected this claim, countering that the law permits the issuance of import licences to companies that hold local refining licences or possess established records in international crude oil and petroleum products trading. Furthermore, NNPC argued that regulators retain the necessary discretion to manage fuel imports under Nigeria’s backward integration policy, and that there is no outright ban on fuel imports except in situations where local production demonstrably and sufficiently meets domestic demand.

Court documents also reveal NNPC’s contention that Dangote refinery had failed to provide “credible, independent or verifiable evidence” demonstrating its capability to consistently meet Nigeria’s total fuel demand and guarantee uninterrupted nationwide supply. Dangote refinery declined to comment on the matter, citing ongoing court proceedings. NNPC also explicitly denied allegations that it deliberately frustrated Dangote refinery’s operations or withheld crude oil supplies, clarifying that crude oil allocations are determined by a range of operational, commercial, security, and logistical considerations. Fuel marketers have also expressed their strong opposition to Dangote’s suit, issuing warnings that restricting import licences could severely weaken market competition and jeopardise fuel supply stability across the entire country. The court is expected to hear the matter in the coming weeks.

Since commencing operations in 2024, Dangote Refinery has consistently advocated for local marketers to procure petroleum products primarily from domestic refineries, rather than relying on continued imports of refined fuel. However, the former NMDPRA leadership, under Farouk Ahmed, consistently resisted any perceived move towards creating a monopoly. Ahmed had maintained that allowing a single refinery to dominate supply would critically undermine competition and pose a significant threat to Nigeria’s long-term energy security. This disagreement led to a notable feud between Aliko Dangote and Mr. Ahmed. Mr. Dangote later accused Mr. Ahmed of corruption, alleging that the regulator was colluding with international traders and fuel importers to frustrate local refining efforts by persistently issuing import licences. He further alleged that Mr. Ahmed was living beyond his legitimate means, specifically claiming that four of his children were enrolled in expensive secondary schools in Switzerland, which raised concerns over possible abuse of office and regulatory integrity. Mr. Ahmed subsequently resigned following the intense controversy.

A previous lawsuit, filed in 2024 by Dangote Refinery (suit number FHC/ABJ/CS/1324/2024), sought N100 billion in damages against the NMDPRA for issuing import licences to several marketers, thereby permitting the importation of petroleum products. The marketers listed in that suit included NNPC Ltd, Matrix Petroleum Services Limited, AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, and 2015 Petroleum Limited. In the suit dated 6 September 2024, the plaintiff’s lawyer, Ogwu Onoja, requested the court to declare that the NMDPRA had violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licences for the importation of petroleum products. Dangote Refinery argued that such licences should only be issued when a clear petroleum product shortfall existed. The refinery also sought a declaration that the NMDPRA had failed in its statutory responsibility under the PIA by not adequately encouraging local refineries, such as Dangote Refinery. However, in a counter-affidavit marked FHC/ABJ/CS/1324/2024 dated 5 November 2024 and filed by Ahmed Raji (SAN), the marketers urged the court to dismiss Dangote Refinery’s claims, asserting that competitive practices are fundamental to Nigeria’s economic health and the viability of its oil sector. They contended that they were fully qualified to receive import licences from the NMDPRA under Section 317(9) of the PIA. The defendants further alleged that the plaintiff was actively attempting to monopolise Nigeria’s petroleum industry by seeking sole control over supply, distribution, and pricing. In July 2025, Dangote Refinery quietly discontinued this lawsuit challenging the import approvals, without publicly disclosing its reasons, leaving unresolved concerns over market competition and supply dynamics in one of Africa’s largest fuel markets.

For decades, Nigeria has been heavily reliant on imported petrol due to the poor performance of its state-owned refineries. The $20 billion Dangote Refinery, owned by billionaire businessman Aliko Dangote, was expected to dramatically reduce this dependence by supplying refined petroleum products locally. With an installed capacity of 650,000 barrels per day, the facility stands as Africa’s largest single-train refinery and was projected to significantly alleviate pressure on foreign exchange reserves used for fuel imports. Despite its operation, petrol imports have persisted as the refinery continues to ramp up its production and distribution capacity, while marketers consistently maintain that current domestic output alone has yet to fully satisfy national demand.