NNPC, Dangote Refinery Clash Over Fuel Import Licences
The Nigerian National Petroleum Company Limited (NNPC Ltd) has accused Dangote Petroleum Refinery of trying to dominate Nigeria’s fuel market through a court case challenging fuel import licences issued to other marketers.
In documents filed before the Federal High Court in Lagos, NNPC argued that cancelling or restricting import permits as requested by Dangote Refinery could weaken competition, disrupt fuel supply, increase price instability, and threaten the country’s energy security.
The legal dispute is part of an ongoing case filed by Dangote Refinery against the Attorney-General of the Federation over the issuance of fuel import licences to several marketers, including the NNPC.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has also applied to join the suit, widening the battle over Nigeria’s fuel import policy and the growing influence of the Dangote Refinery in the downstream sector.
Dangote Refinery had argued that the continued approval of import licences undermines local refining efforts and goes against the objectives of the Petroleum Industry Act (PIA), which was designed to encourage domestic refining capacity.
However, NNPC maintained that the law still allows regulators to issue import licences to companies with refining permits or strong international petroleum trading records. The company added that fuel importation remains necessary where local production cannot fully satisfy domestic demand.
According to the court filings, NNPC said Dangote Refinery had not provided sufficient evidence to prove it could consistently meet Nigeria’s fuel needs nationwide without interruptions.
The state-owned oil company also denied claims that it deliberately frustrated Dangote Refinery’s operations or withheld crude oil supply from the facility, explaining that crude allocation decisions are based on commercial, operational, security, and logistical considerations.
Fuel marketers involved in the matter also opposed Dangote’s position, warning that limiting import licences could reduce market competition and create supply risks.
The court is expected to hear the matter in the coming weeks.
The dispute comes as Dangote Refinery prepares for a planned Initial Public Offering (IPO) later this year, with analysts closely watching how the legal battle could affect market competition and the future structure of Nigeria’s petroleum sector.
Dangote Refinery, valued at about $20 billion, began operations in 2024 and is regarded as Africa’s largest single-train refinery, with a processing capacity of 650,000 barrels per day. The refinery was expected to significantly reduce Nigeria’s long-standing dependence on imported fuel.
Despite the refinery’s operations, fuel imports have continued as marketers insist that local production has not yet fully met national demand.
