The Nigerian National Petroleum Company Limited (NNPC Ltd) has accused the Dangote Petroleum Refinery of attempting to restrict competition and create a monopoly in Nigeria’s downstream petroleum sector by challenging fuel import licences issued to rival marketers.
The allegation was made in court filings submitted before the Federal High Court in Lagos, where NNPC defended the decision of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing petrol import permits to oil marketers despite the operations of the Dangote refinery.
The dispute began after Dangote Petroleum Refinery filed a suit questioning the legality of granting fresh import licences for Premium Motor Spirit (PMS), commonly known as petrol, to other marketers and oil companies.
Dangote Refinery reportedly argued that continued fuel importation discourages local refining and contradicts the objectives of the Petroleum Industry Act (PIA), especially at a time when the refinery claims it has the capacity to meet a significant percentage of Nigeria’s fuel demand.
However, NNPC rejected the argument, insisting that preventing other companies from importing petrol could expose Nigerians to the dangers of a single-supplier market.
According to NNPC, fuel importation remains necessary to ensure healthy competition, stable supply, and fair pricing across the country.
The national oil company also argued that Dangote’s move could give the refinery excessive control over the petroleum supply chain if rival marketers are blocked from importing products.
NNPC further maintained that the NMDPRA acted within the law by approving import licences for several oil marketing firms, stressing that Nigeria’s energy security depends on maintaining multiple supply channels.
Reports indicate that some of the companies granted import licences include NIPCO, Matrix Energy, AA Rano, Pinnacle Oil, Bono Energy, and Shafa.
The legal battle comes amid increasing competition and tension within Nigeria’s oil and gas industry following the commencement of operations at the multi-billion-dollar Dangote Refinery, widely regarded as Africa’s largest single-train refinery.
