Alhaji Aliko Dangote with Ojulari during the NNPCL management's visit
NNPCL accuses Dangote Refinery of seeking monopoly by challenging fuel import licences
The Nigerian National Petroleum Company Limited has told a court that Dangote Petroleum Refinery is attempting to restrict competition and push the country’s fuel market towards monopoly by legally challenging import licences issued to other marketers, according to court filings.
In a proposed defence submitted to the Federal High Court in Lagos, NNPC argued that granting Dangote’s request to cancel or limit import permits could expose Africa’s largest oil producer to supply disruptions, price volatility and risks to national energy security.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority has applied to join the case, broadening a legal dispute over import policy and Dangote refinery’s role in the market.
The litigation comes months before Dangote’s planned September initial public offering of its refinery business, raising uncertainty over market rules, import competition and the revenue outlook investors might assign to the 650,000-barrel-per-day facility.
Dangote Refinery filed the lawsuit in April against Nigeria’s attorney general, challenging fuel import licences issued or renewed by the NMDPRA to marketers and NNPC.
Dangote contends that the licences weaken domestic refining and breach provisions of the Petroleum Industry Act.
NNPC rejected that position, stating that the law permits import licences for companies that hold local refining licences or have proven records in international crude and petroleum-product trading.
It added that regulators possess discretion to manage imports under Nigeria’s backward-integration policy and that no mandatory ban on imports exists except where domestic supply falls short.
NNPC also said Dangote had failed to present “credible, independent or verifiable evidence” that its refinery could satisfy Nigeria’s total fuel demand or ensure uninterrupted supply nationwide, the court documents show.
Dangote declined to comment while the case is ongoing. NNPC denied allegations that it had sabotaged Dangote’s refinery or deliberately withheld crude, explaining that crude allocations depend on operational, commercial, security and logistical factors.
A court hearing has been scheduled for the coming weeks. Fuel marketers have also opposed Dangote’s suit, warning it could harm competition and supply security.
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