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By Chuka Madu

 

Nigerian National Petroleum Company Limited and Dangote Petroleum Refinery are now locked in a fierce legal and commercial showdown that could shape the future of Nigeria’s fuel business for years to come.

At the centre of the growing dispute is a major accusation from the national oil company that the Dangote refinery is trying to dominate the country’s petroleum market by pushing rivals out of fuel importation.

Fresh court documents filed before the Federal High Court in Lagos reveal that NNPC strongly opposed Dangote Refinery’s attempt to challenge import licences issued to other fuel marketers and petroleum traders.

According to the state oil company, stopping competitors from importing fuel could hand too much power to a single refinery and expose Nigeria to dangerous supply problems, unstable fuel prices and wider energy risks.

The legal battle started after Dangote Refinery sued the Federal Government, arguing that continued approval of fuel imports weakens local refining efforts and goes against the spirit of the Petroleum Industry Act.

The refinery insists Nigeria should prioritise locally refined fuel instead of depending heavily on imported petroleum products when a massive domestic refinery already exists within the country.

But NNPC is pushing back hard.

In its proposed defence, the company argued that Nigerian law does not completely ban fuel importation and still allows regulators to approve import licences where necessary.

According to the oil giant, the law gives room for companies with local refining licences or strong international trading records to continue importing fuel products legally.

NNPC also maintained that regulators have the authority to manage fuel supply in ways that protect the economy and prevent shortages.

The company warned the court that granting Dangote’s request could damage market competition and leave Nigeria dangerously dependent on one supplier.

The state-owned oil company further argued that Dangote Refinery has not yet provided enough independent proof that it can consistently supply fuel across the entire country without interruptions.

That position reflects concerns already being quietly discussed within the petroleum industry for months.

Although the refinery has become one of Africa’s biggest industrial projects, many marketers still believe Nigeria cannot completely rely on a single facility for its petrol needs at this stage.

The legal fight has also pulled the Nigerian Midstream and Downstream Petroleum Regulatory Authority into the matter after the regulator applied to join the case.

Industry watchers say the dispute is no longer just about fuel import licences. It has now become a broader power struggle over who controls Nigeria’s downstream petroleum market.

The timing is equally important.

Dangote Refinery is preparing for a planned public share offering expected in September, and analysts believe the outcome of the case could affect investor confidence, future earnings and the refinery’s long-term market strength.

For months, the refinery has repeatedly argued that local fuel production should come first before import licences are issued to marketers.

However, former NMDPRA boss Farouk Ahmed had consistently resisted any arrangement that appeared capable of handing overwhelming market control to one operator.

That disagreement eventually exploded into a public feud between billionaire businessman Aliko Dangote and the former regulator.

Dangote openly accused the regulatory authority of frustrating local refining by continuing to approve fuel imports despite the existence of his refinery.

He also alleged corruption within the system and claimed some officials were working closely with international traders and importers against domestic refining interests.

The businessman even raised questions about the lifestyle of the former regulator, alleging that some of his children attended expensive schools abroad, claims that generated huge controversy across the country.

Farouk Ahmed later resigned following the public tension surrounding the dispute.

This is not the first time both sides have faced off in court.

Back in 2024, Dangote Refinery filed another major suit seeking N100 billion in damages against the NMDPRA for approving import licences for several petroleum marketers, including NNPC and other private operators.

The refinery argued at the time that import permits should only be granted when local production cannot satisfy demand.

Lawyers representing the marketers disagreed sharply, accusing Dangote Refinery of attempting to gain excessive control over fuel supply, distribution and pricing in Nigeria.

They insisted that competition remains essential for a healthy petroleum sector and warned against creating a monopoly in such a critical industry.

Interestingly, that earlier lawsuit was quietly withdrawn by Dangote Refinery in July 2025 without any public explanation.

Yet the core disagreement never truly disappeared.

For decades, Nigeria has depended heavily on imported petrol because government-owned refineries failed to function properly.

The $20 billion Dangote Refinery was widely celebrated as a game-changing project expected to reduce that dependence and save the country huge amounts of foreign exchange.

With a refining capacity of 650,000 barrels per day, the facility remains the largest single-train refinery in Africa.

Still, petrol imports have continued because marketers argue that local supply alone has not fully covered national demand.

Now, with both sides digging in publicly and privately, the court battle is rapidly becoming one of the most important economic and political fights in Nigeria’s oil industry.

The case is expected to come up for hearing in the coming weeks, with many Nigerians watching closely to see who eventually gains the upper hand in the struggle over the nation’s fuel future.