Dangote price war: NNPC backs fuel imports, warns court against monopoly

By: Abudu Olalekan

NNPC isn’t backing down in its fight with Dangote Refinery over fuel imports. If anything, it’s digging in.

In a filing at the Federal High Court in Lagos, the Nigerian National Petroleum Company Limited told the judge that petrol and other products coming out of Dangote’s refinery are being sold at “significantly high and fluctuating” prices. And here’s the bigger warning: if the court grants what Dangote is asking for, Nigeria could end up with one dominant player calling the shots in the downstream market. That’s basically monopoly territory, NNPC said.

This is all playing out in Suit No: FHC/L/CS/857/2026, before the Lagos Judicial Division. NNPC’s position was contained in a counter-affidavit opposing Dangote’s originating summons.

And NNPC isn’t alone.

Fuel marketers under PETROAN (Petroleum Products Retail Outlet Owners Association of Nigeria) are siding with the national oil company too. Their argument is straightforward: let competition breathe. Multiple supply sources, they say, is one of the few real ways prices can cool down instead of being “exploited” by any one supplier.

In the court papers seen by Reportersroom, NNPC asked the court to throw out the case entirely, saying it’s incompetent, premature, shows no real cause of action, and amounts to an abuse of court process. Strong words. Very strong.

Dangote’s beef with import licences
Dangote Refinery’s main complaint is the continued issuance of petrol import licences by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to marketers and NNPC.

According to Reportersroom, the regulator recently approved licences covering over 700,000 metric tonnes of petrol, even as the refinery claims it now supplies over 90% of Nigeria’s daily PMS needs.

Dangote took the matter to court, dragging in the Attorney-General and NNPC, and asking the judge to cancel those import permits. The refinery’s argument is that the licences break existing regulations and also violate an earlier court order to keep things as they were (status quo).

At the heart of it, Dangote is saying: why import fuel when we can make it here? The company also accused NNPC and others of frustrating the $20bn Lekki project—especially through crude supply issues and continued importation.

NNPC’s response: “Too early, and you don’t have standing”
NNPC says it will file a preliminary objection challenging the competence of the suit and Dangote’s locus standi (basically, their right to bring the case the way they did).

The company also took a swipe at Dangote’s pricing, saying the refinery’s products are already expensive and swing up and down based on its own commercial interests. No sugar-coating.

Then came another accusation: forum shopping.

NNPC told the court that Dangote had earlier filed a similar case in Abuja—Suit No. FHC/ABJ/CS/1324/2024—against NMDPRA and others over import licences and levies, withdrew it, and then brought another one in Lagos. NNPC says that pattern is an abuse of court process.

“Show us the proof you can supply Nigeria, nonstop”
One big part of NNPC’s argument is this: it says there’s no credible, independent evidence that Dangote can singlehandedly meet Nigeria’s fuel demand nationwide.

NNPC also said the refinery didn’t provide verified numbers on Nigeria’s actual daily consumption or prove it can guarantee uninterrupted supply across the country. And even if you can refine, that’s not the full job.

Fuel supply, NNPC stressed, isn’t just about production capacity. It’s storage, evacuation, trucking, distribution, strategic reserves, and keeping the system running when something goes wrong.

Because something always goes wrong.

NNPC warned that relying on a single supplier is risky for national energy security. If Dangote’s refinery has any serious disruption—shutdown, operational hiccup, anything—Nigeria could face shortages fast if imports and other channels are blocked.

And that’s why NNPC says granting Dangote’s request would squeeze out other players and hand the refinery too much control over the downstream market.

What NNPC says the law allows
NNPC also defended the continued issuance of import licences, saying it’s lawful and necessary for stability. It argued that Section 317(9) of the Petroleum Industry Act (PIA) actually contemplates import licences in certain cases, while Section 317(8) only gives regulators discretion to apply a Backward Integration Policy—it doesn’t impose an automatic ban on imports.

NNPC further denied claims of sabotage or deliberate denial of crude supply, saying crude arrangements depend on real-world issues like security, logistics, production levels, contracts, and commercial terms.

Marketers: keep the market open
PETROAN President Billy Gillis-Harry said Dangote has every right to go to court—fair enough. But he insisted the downstream sector must stay competitive for price moderation, availability, and energy security.

He warned against allowing the market to tilt toward monopoly, regardless of how big any single investment is. In his view, competition helps reduce prices through pressure. Monopoly does the opposite. It can mean arbitrary pricing, fewer choices, and a lazy market.

He praised Dangote’s investment and its contribution to jobs and local refining, but still argued that multiple operators must be allowed to function under regulation.

Refiners also pushing back on imports
On the other side, the Crude Oil Refineries Association of Nigeria (CORAN) has been vocal against continued imports too. CORAN’s Publicity Secretary, Eche Idoko, recently argued that real commitment should be measured by capital invested and long-term risk—construction, forex swings, crude uncertainty, power and logistics headaches—not just trading.

Their point: local refiners have money on the ground. Importers don’t carry that kind of risk.

Why this fight matters
This is now one of the biggest legal clashes since Dangote Refinery started operations. And it’s happening in a market that has been brutal since subsidy removal in 2023—where prices move with market forces, and everybody is fighting for supply control, margins, and survival.

Dangote wants stronger protection for local refining and tighter limits on imports. NNPC and marketers are saying: not so fast. Keep the channels open, or you could trigger scarcity and price shocks.