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Home » Nigeria’s NNPC Says Dangote Refinery Monopoly Push Could Threatens Fuel Competition
Energy

Nigeria’s NNPC Says Dangote Refinery Monopoly Push Could Threatens Fuel Competition

by Oluebube Elechi May 25, 2026
written by Oluebube Elechi May 25, 2026
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LAGOS, May 25 – Nigeria’s state-owned oil company NNPC Ltd. has accused Dangote Petroleum Refinery of attempting to tighten its grip on the country’s fuel market by challenging import licences issued to rival fuel marketers, according to court filings reviewed by Reuters.

In a proposed defence filed at the Federal High Court in Lagos, NNPC argued that restricting fuel import permits could leave Nigeria exposed to supply shortages, price shocks and broader risks to energy security. The company said allowing only one dominant supplier in the market could weaken competition and disrupt fuel availability across the country.

The legal dispute has drawn in the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which is seeking to join the case as a party. The regulator had issued and renewed the contested import licences to NNPC and independent marketers.

Dangote Refinery filed the suit in April against Nigeria’s attorney general, arguing that the import approvals undermine local refining and conflict with provisions of the Petroleum Industry Act. The company has maintained that Nigeria should prioritise domestic refining capacity over imported fuel supplies.

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NNPC, however, said the law permits fuel imports by companies holding refining licences or firms with established international trading records. It also argued that regulators retain the authority to manage imports under the country’s backward-integration policy.

According to the court filing, NNPC further stated that Dangote had not provided “credible, independent or verifiable evidence” showing the 650,000-barrel-per-day refinery could consistently meet Nigeria’s fuel demand nationwide.

The dispute comes ahead of Dangote refinery’s planned September initial public offering, placing renewed focus on Nigeria’s fuel import policy and competitive landscape. Fuel marketers have also opposed the lawsuit, warning it could weaken supply stability and limit market competition.

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