The battle for control of Nigeria’s downstream oil sector has intensified as the Nigerian National Petroleum Company Limited (NNPC) openly opposed moves by the Dangote Petroleum Refinery to stop fuel importation, warning that such action could trigger fuel scarcity, price instability, and monopoly control.
In fresh court filings before the Federal High Court in Lagos, the NNPC argued that petroleum products from the Dangote Refinery are already being sold at “high and fluctuating prices,” insisting that Nigeria cannot rely on a single refinery for nationwide fuel supply.
The legal dispute began after the Dangote Refinery challenged the issuance of petrol import licences by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to marketers and oil traders.
The refinery claimed it currently supplies over 90 per cent of Nigeria’s petrol demand and accused regulators and the NNPC of frustrating local refining through continued fuel importation.
However, the NNPC dismissed the claims, insisting there is no verified evidence proving that Dangote Refinery alone can satisfy Nigeria’s daily fuel consumption without disruptions.
According to the national oil company, depending solely on one supplier poses a major risk to Nigeria’s energy security and could expose the country to severe fuel shortages if operations at the refinery are interrupted.
NNPC further accused the refinery of attempting to dominate the petroleum market by pushing competitors out of the supply chain.
“The reliefs sought by the plaintiff are aimed at substantially restricting or eliminating other participants within the petroleum importation and supply chain,” the company stated in its affidavit.
The oil giant warned that granting Dangote’s request could create a monopoly in the sector, negatively affecting fuel prices, supply flexibility, and competition.
The company also defended the continued issuance of import licences, saying the Petroleum Industry Act allows regulators to approve fuel imports when necessary to guarantee market stability and energy security.
Meanwhile, petroleum marketers under the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) backed the NNPC, stressing that healthy competition remains necessary to keep petrol prices under control.
PETROAN President Billy Gillis-Harry warned against allowing any single operator to dominate Nigeria’s downstream petroleum sector, saying monopoly could lead to exploitative pricing and artificial scarcity.
He acknowledged Dangote Refinery’s massive investment in local refining but maintained that multiple supply channels remain necessary for uninterrupted fuel availability across Nigeria.
The latest court showdown marks another major confrontation between the Dangote Refinery and government oil agencies since the refinery commenced operations in 2024.
Following the removal of fuel subsidy in 2023, Nigeria’s petrol market has become highly competitive, with refiners, importers, marketers, and regulators battling for control over supply and pricing.
While Dangote Refinery continues to push for stronger government protection for local refining, regulators and marketers insist that fuel importation remains necessary to prevent scarcity and ensure stable petrol supply nationwide.
