The Nigerian National Petroleum Company Limited (NNPC) is currently opposing a lawsuit filed by the Dangote Petroleum Refinery, which seeks to invalidate fuel import permits issued to rival market. The NNPC warns that granting the refinery’s request could create a monopoly and threaten Nigeria’s energy supply. [

The Nigerian National Petroleum Company Limited has told a Lagos Federal High Court that Dangote refinery’s fuel prices are too high and too unstable, warning that giving the refinery what it wants could create a monopoly in Nigeria’s petroleum sector.

NNPC Fires Back

NNPC filed a counter-affidavit against Dangote Refinery’s lawsuit. The state oil company is asking the court to throw out the case entirely, calling it premature and an abuse of the legal process.

The Petroleum Products Retail Outlet Owners of Nigeria (PETROAN) sided with NNPC, arguing that competition in the sector must be protected to prevent price exploitation. They believe having multiple fuel sources will eventually bring prices down.

The Core Dispute

Dangote refinery had gone to court to challenge import licences given to marketers and NNPC by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The refinery says these licences violate existing laws and an earlier court order.

The NMDPRA recently approved permits for over 700,000 metric tonnes of petrol imports, even though Dangote refinery claims it now supplies more than 90% of the country’s daily fuel consumption.

Dangote accused NNPC and others of sabotaging its $20 billion investment by refusing to supply crude oil and continuing to import fuel when the refinery has enough capacity to meet the nation’s needs.

NNPC’s Arguments

NNPC made several key points in its response:

The company said Dangote’s products are already sold at high and fluctuating prices based on its own commercial interests, not what’s best for Nigerians.

NNPC accused the refinery of forum shopping, pointing out that Dangote had filed a similar case in Abuja in 2024 before withdrawing it and starting a new one in Lagos.

The oil company argued there is no proof that Dangote refinery can independently meet Nigeria’s full fuel demand. They said the refinery’s production figures are selective and incomplete.

NNPC stressed that fuel supply involves more than just refining. It requires logistics, storage, distribution, and strategic reserves – things a single company cannot handle alone.

The Monopoly Warning

NNPC warned that relying on one supplier for the national fuel supply is dangerous. If the refinery faces any operational issues – shutdowns or disruptions – and import channels have been cut off, the country could face severe fuel shortages.

The company said granting Dangote’s requests would effectively eliminate other players in the supply chain and create a monopoly. This would hurt consumers, destabilise prices, reduce supply flexibility, and expose the economy to substantial risks.

Defending Import Licences

NNPC defended the import licences, saying they are lawful and necessary for energy security. The company argued that the Petroleum Industry Act does not ban imports. Instead, it gives regulators the discretion to issue import permits to companies with active refining licences or proven international trading track records.

The case is ongoing at the Federal High Court in Lagos.