THE Nigerian National Petroleum Company Limited (NNPC) has informed the Federal High Court in Lagos that petroleum products from Dangote Petroleum Refinery are sold at high and unstable prices.
It argued that granting the refinery’s request of allowing it to be the sole fuel supplier in Nigeria could create a monopoly.
In a counter-affidavit filed in opposition to Dangote Refinery’s suit (No. FHC/L/CS/857/2026), NNPC asked the court to dismiss the case, describing it as premature, incompetent, and an abuse of court process.
“The plaintiff’s petroleum products are already sold at significantly high and fluctuating market prices, dictated by its commercial interests,” NNPC said.
The ICIR reports that the dispute stemmed from Dangote Refinery’s challenge to the issuance of petrol import licences by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to marketers and NNPC.
The refinery argued that the licences violated existing regulations and undermined its $20 billion investment, especially as it claimed to supply more than 90 per cent of Nigeria’s petrol demand. The company accused NNPC and regulators of frustrating its operations through inadequate crude oil supply and continued fuel importation despite its production capacity.
Responding, NNPC argued that there was no independently verified evidence proving the refinery could meet Nigeria’s fuel demand without support from imports.
According to the national oil company, the refinery’s production figures are selective and incomplete and do not account for critical aspects of fuel distribution such as logistics, storage, transportation, and strategic reserves.
The NNPC warned that relying on a single supplier could threaten national energy security and expose the country to shortages, supply disruptions, and price instability if refinery operations are interrupted.
The company also argued that the refinery’s requests would unfairly restrict other operators in the importation and supply chain, effectively creating monopoly control of the sector.
Defending the continued issuance of import licences, NNPC said the Petroleum Industry Act permitted regulators to approve imports when necessary to ensure energy security and market stability. It maintained that the law did not impose a mandatory ban on fuel importation.
It further denied allegations that it sabotaged Dangote Refinery’s operations or deliberately withheld crude oil supplies, stating that crude allocation depends on commercial agreements, logistics, production realities, and security considerations.
Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) also backed NNPC’s position, insisting that competition in the petroleum sector was necessary to prevent price exploitation and encourage lower fuel prices through multiple supply sources.
PETROAN President, Billy Gillis-Harry, stressed that while Dangote Refinery’s investment was commendable, Nigeria’s downstream market must remain open and competitive to protect consumers from arbitrary pricing and supply shocks.
The latest legal battle marks another major confrontation between Dangote Refinery and government oil agencies over fuel importation, crude supply arrangements, and competition in Nigeria’s deregulated downstream petroleum sector.
The ICIR reports that the NNPC’s fight with Dangote Refinery continues as the national oil company persistently fails to revamp the government-owned Warri, Port-Harcourt and Kaduna refineries after wasting a huge chunk of state resources on them.
Nanji is an investigative journalist with the ICIR. She has years of experience in reporting and broadcasting human angle stories, gender inequalities, minority stories, and human rights issues. She has documented sexual war crimes in armed conflict, sex for grades in Nigerian Universities, harmful traditional practices and human trafficking.