The Nigerian National Petroleum Company Limited (NNPC) has formally opposed a lawsuit filed by Dangote Refinery challenging fuel import licences granted to rival petroleum marketers as a high-stakes legal dispute over Nigeria’s downstream fuel market intensifies.
In a strongly worded court response, NNPC accused Dangote Refinery of seeking to restrict competition in Nigeria’s fuel market, a move the state-owned oil giant warned could jeopardise the country’s energy security and expose millions of Nigerians to supply shortages and rising pump prices.
Dangote Refinery, Africa’s largest oil refinery with a processing capacity of 650,000 barrels per day, had filed a suit against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), challenging the agency’s decision to issue fuel import licences to several petroleum marketers and NNPC itself.
The refinery argued that the licences undermine local refining investment and conflict with the Petroleum Industry Act (PIA), Nigeria’s landmark oil and gas reform law. With its refinery now operational at scale, Dangote maintains that continued fuel imports are unnecessary and damaging to domestic production.
NNPC pushed back sharply, insisting that the law explicitly permits import licences for qualified companies active in refining and petroleum trading. The corporation argued that Dangote Refinery has failed to present verifiable evidence that its facility alone can meet Nigeria’s total fuel demand. It further warned that restricting imports could trigger dangerous supply disruptions, price volatility, and broader energy security risks. NNPC also denied allegations of sabotaging Dangote’s operations or deliberately withholding crude oil supply, dismissing the claims as unsubstantiated.
The NMDPRA has since applied to join the case as a formal party, signalling its intent to defend the licences it issued and clarify its regulatory authority. Independent fuel marketers have equally filed opposition to Dangote’s suit, citing concerns over competition and supply chain stability.
The dispute comes at a critical moment, as Dangote Refinery has announced plans for a September Initial Public Offering (IPO). Legal uncertainty surrounding its market position and the fuel import regime could weigh on investor confidence ahead of that listing. The case continues before the Federal High Court.
