The Nigerian National Petroleum Company Limited (NNPC Ltd) has told a Federal High Court in Lagos that petroleum products from the Dangote Petroleum Refinery are sold at highly fluctuating and relatively high market prices, warning that granting the refinery’s claims could lead to monopoly control in Nigeria’s downstream oil sector.
NNPC made the submission in a counter-affidavit opposing Dangote Refinery’s originating summons in a case before the Lagos Judicial Division of the Federal High Court, arguing that the suit is incompetent, premature, and an abuse of court process.
The national oil company also stated that marketers and regulators must be allowed to operate freely to maintain competition and prevent price exploitation, adding that multiple supply sources are necessary for price stability and energy security.
Dangote Refinery had approached the court to challenge the issuance of fuel import licences to marketers and the NNPC by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), arguing that such licences undermine local refining capacity despite its ability to supply a large portion of Nigeria’s fuel demand.
In response, NNPC argued that the refinery’s suit lacks legal standing and that its claims of being able to fully meet national fuel demand are not backed by credible or independently verified data.
The company further insisted that Nigeria’s fuel supply system requires multiple participants due to logistics, storage, distribution, and reserve management challenges, warning that reliance on a single supplier could expose the country to severe fuel shortages and price instability.
NNPC also denied allegations that it or other government agencies deliberately sabotaged the refinery or denied it crude oil supply, stating that crude allocation is guided by commercial, operational, and security considerations.
It maintained that regulators acted within the provisions of the Petroleum Industry Act in issuing import licences, stressing that the law allows discretionary application of backward integration policies rather than a total ban on imports.
The oil firm further argued that restricting imports as requested by Dangote Refinery could distort competition, reduce supply flexibility, and risk triggering nationwide fuel crises.
Oil marketers and the Petroleum Products Retail Outlet Owners Association of Nigeria also supported NNPC’s position, insisting that competition in the downstream sector is essential to ensure product availability, price moderation, and consumer protection.
They warned against any arrangement that could tilt the market toward monopoly, adding that Nigeria’s petroleum sector must remain open and competitive to avoid artificial scarcity and price exploitation.
Meanwhile, the Crude Oil Refineries Association of Nigeria (CORAN) argued that local refiners have demonstrated long-term commitment to Nigeria’s energy sector through heavy capital investment in domestic refining infrastructure.
The ongoing legal dispute highlights deep tensions over fuel importation, domestic refining capacity, and market regulation in Nigeria’s deregulated downstream petroleum sector.
