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Fresh tensions are brewing in Nigeria’s oil sector as the Nigerian National Petroleum Company Limited (NNPC) and petroleum marketers push back against attempts by the Dangote Refinery to stop fuel imports into the country.
The dispute, now before a Federal High Court in Lagos, could shape the future of Nigeria’s downstream petroleum industry and determine whether fuel importation continues despite the presence of the multibillion-dollar Dangote Refinery.
According to court documents, the NNPC warned that granting Dangote’s request to halt fuel import licences could create a dangerous monopoly in Nigeria’s petroleum sector and expose the country to supply disruptions and price instability.
The state oil company argued that petrol produced by Dangote Refinery is already being sold at “high and fluctuating prices” driven by commercial interests.
NNPC also insisted that relying on a single refinery for the nation’s fuel supply would be risky for Nigeria’s energy security.
The legal battle began after Dangote Refinery challenged the continued issuance of petrol import licences by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The refinery argued that fuel imports were unnecessary because it now supplies a large portion of Nigeria’s petrol needs and claimed the continued importation of fuel was undermining local refining investments.
Dangote Refinery also accused some operators and regulators of frustrating its operations, including allegations surrounding crude oil supply challenges and fuel import approvals.
However, the NNPC rejected those accusations, telling the court that there was no verified evidence proving Dangote Refinery could independently meet Nigeria’s total daily fuel demand nationwide.
The company explained that supplying fuel across Nigeria goes beyond refining capacity alone and also involves transportation, storage, distribution networks, logistics, and emergency reserve management.
According to the NNPC, shutting out fuel importers could leave the country vulnerable to severe shortages if anything disrupts operations at the refinery.
The company warned that “reliance on a single supplier” could trigger supply crises, distribution failures, and price shocks capable of affecting the entire economy.
NNPC further maintained that fuel import licences remain lawful under the Petroleum Industry Act and are necessary to guarantee energy security and market stability.
Meanwhile, petroleum marketers under the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) have also backed continued fuel importation.
The association stressed that healthy competition is important to prevent monopoly control, protect consumers, and encourage fair pricing in the downstream oil sector.
PETROAN President, Billy Gillis-Harry, acknowledged Dangote Refinery’s massive investment and contributions to local refining but insisted that multiple operators should be allowed to function in the industry.
According to him, competition helps reduce fuel prices, improve efficiency, and prevent exploitation of consumers.
He warned that allowing a single dominant supplier could lead to arbitrary pricing, reduced consumer choices, and supply risks.
On the other hand, local refiners under the Crude Oil Refineries Association of Nigeria (CORAN) have defended Dangote Refinery and criticised the continued dependence on imported petroleum products.
The association argued that local refinery operators have shown greater commitment to Nigeria’s energy future by investing billions of dollars into infrastructure despite policy uncertainties and operational challenges.
The latest clash highlights the growing battle for control of Nigeria’s deregulated petroleum market following the removal of fuel subsidy and increasing competition between refiners, importers, marketers, and regulators.
As the court case continues, many Nigerians are watching closely, especially as fuel prices remain unstable and economic pressures continue to affect households and businesses nationwide.
