Business
NNPC accuses Dangote refinery of seeking fuel monopoly in court filing
The Nigerian National Petroleum Company Limited (NNPC Ltd) has accused Dangote Petroleum Refinery of attempting to monopolise Nigeria’s fuel market through a lawsuit challenging import licences granted to rival marketers.
In court documents, the state oil company argued that granting Dangote’s request to void or restrict fuel import permits would undermine competition and expose Nigeria to supply disruptions, price instability and threats to national energy security.
The position was contained in a proposed defence filed before the Federal High Court in Lagos in response to a suit instituted by Dangote Petroleum Refinery against the Attorney-General of the Federation.
Reuters reported that the legal dispute has resulted in the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) applying to join the case.
The move comes less than a month after Dangote Petroleum Refinery filed a fresh lawsuit against Nigeria’s Attorney-General, seeking to overturn fuel import licences granted to oil marketers and the NNPC.
The lawsuit exchange has also broadened the battle over Nigeria’s fuel import policy and the market influence of Dangote’s 650,000 barrels-per-day refinery.
The dispute comes ahead of Dangote Refinery’s planned initial public offering (IPO) in September, raising fresh concerns over market regulation, competition, and the refinery’s future revenue outlook.
In its lawsuit against the government, the refinery argued that licences issued to rival marketers undermine local refining efforts and violate provisions of the Petroleum Industry Act (PIA), which it said was designed to encourage domestic refining capacity.
However, NNPC has rejected the claim, arguing that the law permits the issuance of import licences to companies with local refining licences or established records in international crude oil and petroleum products trading.
The state oil company further argued that regulators retain the discretion to manage fuel imports under Nigeria’s backward integration policy and that there is no outright ban on fuel imports except where local production sufficiently meets domestic demand.
According to the court documents, NNPC also contended that Dangote refinery had failed to provide “credible, independent or verifiable evidence” that it could consistently meet Nigeria’s total fuel demand and guarantee uninterrupted nationwide supply.
Dangote refinery declined to comment on the matter, citing the ongoing court proceedings.
NNPC also denied allegations that it deliberately frustrated Dangote refinery’s operations or withheld crude oil supplies from the facility.
The company said crude oil allocations were determined by operational, commercial, security and logistical considerations.
Fuel marketers have equally opposed Dangote’s suit, warning that restricting import licences could weaken market competition and threaten fuel supply stability across the country.
The court is expected to hear the matter in the coming weeks.
Background
Since commencing operations in 2024, Dangote Refinery has repeatedly pushed for local marketers to source petroleum products primarily from domestic refineries rather than continue importing refined fuel.
However, the former NMDPRA leadership under Farouk Ahmed consistently resisted any move perceived as creating a monopoly, insisting that allowing a single refinery to dominate supply would undermine competition and threaten Nigeria’s long-term energy security.
That disagreement led to a feud between Aliko Dangote and Mr Ahmed.
Mr Dangote later accused Mr Ahmed of corruption and alleged that the regulator was colluding with international traders and fuel importers to frustrate local refining by continuing to issue import licences.
He also alleged that Mr Ahmed was living beyond his legitimate means, claiming that four of his children were enrolled in expensive secondary schools in Switzerland, raising concerns over possible abuse of office and regulatory integrity.
Mr Ahmed later resigned following the controversy.
Previous lawsuit
In 2024, Dangote Refinery, in suit number FHC/ABJ/CS/1324/2024, asked the court to award N100 billion in damages against the NMDPRA for issuing import licences to some marketers and permitting the importation of petroleum products.
The marketers listed in the suit were NNPC Ltd, Matrix Petroleum Services Limited, AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, and 2015 Petroleum Limited.
In the suit dated 6 September 2024, the plaintiff’s lawyer, Ogwu Onoja, asked the court to declare that the NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licences for the importation of petroleum products.
Dangote Refinery argued that such licences should only be issued when a petroleum product shortfall exists.
The refinery also asked the court to declare that the NMDPRA failed in its statutory responsibility under the PIA by failing to encourage local refineries, such as Dangote Refinery.
However, in a counter-affidavit marked FHC/ABJ/CS/1324/2024 dated 5 November 2024 and filed by Ahmed Raji (SAN), the marketers asked the court to dismiss Dangote Refinery’s claims, insisting that competitive practices are essential to Nigeria’s economic health and the viability of the oil sector.
They argued that they were fully qualified to receive import licences from the NMDPRA under Section 317(9) of the PIA.
The defendants further alleged that the plaintiff was attempting to monopolise Nigeria’s petroleum industry by seeking sole control of supply, distribution, and pricing.
In July 2025, Dangote Refinery quietly discontinued the lawsuit challenging the import approvals without publicly stating its reasons, leaving unresolved concerns over market competition and supply dynamics in one of Africa’s largest fuel markets.
READ ALSO: NNPC posts N276 billion profit in March
For decades, Nigeria has relied heavily on imported petrol because its state-owned refineries have performed poorly.
The $20 billion Dangote Refinery, owned by billionaire businessman Aliko Dangote, was expected to end that dependence by supplying refined petroleum products locally.
With an installed capacity of 650,000 barrels per day, the facility is Africa’s largest single-train refinery and is projected to reduce pressure on foreign exchange used for fuel imports significantly.
However, petrol imports have persisted as the refinery continues to ramp up production and distribution capacity, while marketers maintain that domestic output alone has yet to meet national demand fully.
Mutual Benefits Assurance reported on Friday a 45 per cent increase in net profit for the 2025 financial year, receiving a major boost from its insurance business.
Shares in the insurer had gone up by 9.5 per cent on Lagos’ Customs Street as of 10:32 West Africa Time, following the news.
Insurance service result leapt 718.9 per cent to N8.8 billion, according to its audited financials, easing the blow that a slide in net investment income would have had dealt on earnings.
The net investment income of the underwriter dropped by 11.1 per cent in the period under review after incurring N659.7 million in foreign exchange loss in contrast to a gain of N5.3 billion posted a year earlier.
Insurance revenue climbed by 19.6 per cent to N80 billion, with Nigeria contributing more than three-fourths of that sum, while Niger and Liberia – other markets where the company operates – accounted for the rest.
The results also showed that motor insurance remains the biggest contributor to insurance revenue pool of the insurer, whose underwriting operations span oil & gas, aviation, agriculture, marine and life among others. Revenue from motor insurance stood N26.2 billion, up from N17.9 billion a year earlier.
Apart from assurance business, the company has operations in real estate, microfinance as well as oil & gas exploration and production.
One of the key highlights of the reasonably strong performance was the N9.2 billion recorded as insurance service result before reinsurance contracts held, which compares to a negative position of N1.2 billion reported in 2024, when soaring insurance service costs wiped out insurance revenue.
READ ALSO: CBN retains interest rate at 26.5%
Mutual Benefits Assurance has proposed a dividend per share of N0.04 for the review period, translating into a potential payout of N802.5 million, two times what it paid shareholders for 2024.
Strengthening profit, the company cut back other employee benefit expenses by 7.8 per cent and other operating expenses by 40.5 per cent.
Profit before income tax rose by 47.6 per cent to N17.4 billion, while profit after tax advanced to N16.4 billion.
Total assets expanded by 19.8 per cent to N176.2 billion, driven by an increase in financial assets at amortised cost.
President Bola Ahmed Tinubu congratulates the National Drug Law Enforcement Agency (NDLEA) and the staff for the remarkable achievement in busting a Nigerian-Mexican drug syndicate and dismantling a highly sophisticated multi-million-dollar illegals drug production network in the country.
Chairman of the agency, Brigadier General Mohammed Buba Marwa (rtd), on Wednesday announced the major drug bust following a massive operation spanning weeks of intelligence gathering and meticulous planning by NDLEA operatives in collaboration with international partners.
President Tinubu remarks: “This successful operation, which led to the arrest of foreign nationals, local kingpins and other collaborators, as well as the seizure of chemicals and illicit drugs valued at over $360 million, demonstrates exceptional professionalism, courage, and unwavering commitment to safeguarding society from the devastating effects of narcotics.”
“I commend the bravery, resilience, and dedication displayed by operatives of the NDLEA throughout this mission. I urge them not to be complacent in confronting the menace of drug trafficking.
“West Africa has become a great concern in the global war against narcotics as drug barons turn our region into a transit hub for moving cocaine, synthetic drugs and unregulated pharmaceuticals to Europe and North America.
“Drugs not only pose a critical security threat for our region, but they also pose a grave danger to the future of our youth, some of whom have become victims of the trade.
“I call on all Nigerians to see the fight against illicit drugs not NDLEA’s alone. Everyone has a role to play. We must remain vigilant and promptly report suspicious activities within our communities to assist security agencies in combating criminal networks.
“This landmark success is a strong message that our security agencies will not tolerate organised crime and criminality anywhere in the country, and that those who threaten public safety and national security will face the wrath of the law.”
The post Tinubu Commends NDLEA for Landmark Victory Against International Drug Network appeared first on Business Today NG.
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