A legal dispute has erupted between the Nigerian National Petroleum Company Limited and Dangote Petroleum Refinery over fuel import licences, with both parties taking opposing positions on how Nigeria’s downstream petroleum market should be regulated.

NNPC told the Federal High Court in Lagos that attempts to restrict or cancel import permits for other oil marketers could give a single operator excessive control over the fuel market. The company warned that such an outcome could reduce competition and threaten the stability of fuel supply across the country.

It argued that Nigeria still depends on a mix of local refining and imports to meet national demand, and that regulators are empowered to approve import licences where necessary to avoid shortages. NNPC also insisted that maintaining multiple supply sources helps protect the country from disruptions and price shocks.

Dangote Refinery, however, maintains that continued importation of petroleum products undermines domestic refining efforts. The company is seeking to limit import licences, arguing that stronger protection for local production is necessary under the Petroleum Industry Act to encourage self-sufficiency.

The refinery has long positioned itself as a key solution to Nigeria’s dependence on imported fuel, but says that competing imports reduce the incentive for full utilisation of local refining capacity.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has also applied to join the case, highlighting the wider regulatory implications of the dispute.
Industry marketers have pushed back against Dangote’s position, warning that restricting imports could weaken competition and create supply gaps if local production falls short.

The case is expected to continue in the coming weeks and could influence how Nigeria balances local refining ambitions with market competition and fuel security in the downstream sector.