Nigeria’s state oil company, NNPC Limited, has accused Dangote Petroleum Refinery of attempting to restrict competition and push the country’s fuel market toward monopoly control by challenging import licences issued to rival marketers, according to court documents seen by Reuters.
In a proposed defence filed at the Federal High Court in Lagos, NNPC argued that granting Dangote’s request to cancel or restrict import permits could expose Africa’s largest oil producer to fuel supply disruptions, price instability, and broader risks to national energy security. The case has also drawn in the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which has applied to join the proceedings, further expanding the legal dispute over import policy and the refinery’s market role.
The lawsuit was originally filed in April by Dangote Petroleum Refinery against Nigeria’s attorney general, challenging the issuance and renewal of fuel import licences to marketers and NNPC. Dangote argues that these licences undermine local refining efforts and conflict with provisions governing Nigeria’s downstream petroleum sector.
However, NNPC maintains that existing regulations allow import licences to be issued to companies with refining capacity or a proven track record in international crude and petroleum product trading. It also argues that regulators retain discretion under Nigeria’s backward-integration policy, and that no law imposes a blanket ban on imports except in cases of domestic supply shortfalls.
NNPC further contends that Dangote has not provided credible, independent evidence that its refinery can fully meet Nigeria’s fuel demand or guarantee uninterrupted nationwide supply.
Dangote declined to comment while the case is ongoing.
NNPC also rejected claims that it sabotaged the refinery or deliberately withheld crude oil supplies, stating that crude allocations are determined by operational, commercial, security, and logistical considerations.
The dispute comes months ahead of Dangote’s planned September IPO of its refinery business, raising investor attention around regulatory stability, import competition, and potential revenue outlook for the 650,000-barrel-per-day facility.
Fuel marketers have also opposed Dangote’s suit, warning that restricting import licences could weaken competition and threaten supply security.
