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.
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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.
The United States Mission in Nigeria has reaffirmed its commitment to deepening trade, investment, security, and cultural relations with Nigeria as it marked the 250th anniversary of American Independence and Freedom in Lagos.
Speaking at the celebration, the Chargé d’Affaires at the U.S. Mission to Nigeria, Keith Heffern, said the anniversary celebrates 250 years of American history while looking ahead to the country’s future leadership in innovation and global engagement.
Mr Heffern described Nigeria as one of the United States’ most important partners in Africa, noting that economic relations between both countries have continued to expand.
“Nigeria is now the United States’ second-largest trading partner in Sub-Saharan Africa. In 2025, two-way trade between our countries reached nearly $15 billion, representing a 14 per cent increase over 2024,” he said.
He added that more than 100 US companies currently operate in Nigeria, saying the investments support jobs, economic opportunities, and growth in both countries.
According to him, one of the mission’s priorities is helping American companies succeed in Nigeria through the US-Nigeria Commercial and Investment Partnership, a five-year Memorandum of Understanding signed with Nigeria’s Ministry of Industry, Trade and Investment.
Now in its second year, Mr Heffern said the initiative has brought together nearly 50 American and Nigerian companies to remove barriers to trade and investment.
He noted that Lagos hosted the first ministerial-level meeting under the partnership in January and said cooperation is focused on the digital economy, agriculture, and infrastructure to promote long-term economic growth.
Security, Cultural Collaboration
Beyond commerce, Mr Heffern highlighted the growing security collaboration between the two countries. He noted that the National Drug Law Enforcement Agency (NDLEA), working with the US Drug Enforcement Administration (DEA), recently dismantled a major transnational criminal organisation involved in drug trafficking and money laundering.
“Efforts like this disrupt the illicit networks that undermine security, finance criminal activity, and threaten the safety and prosperity of our two nations,” the diplomat said.
Mr Heffern said cultural exchanges remain a strong pillar of the bilateral relationship, with this year’s event themed ‘Motown’ to celebrate the global influence of American music and its connection to Nigeria’s creative industry.
He said Nigerian Afrobeats stars continue to enjoy global recognition, citing Rema and Burna Boy as examples of artists who have achieved international success.
Looking ahead, he said the United States hopes to strengthen cultural and commercial cooperation through sports as it prepares to host the 2026 FIFA World Cup and the 2028 Summer Olympics.
Mr Heffern also highlighted the impact of US exchange programmes, stating that more than 14,000 Nigerians have participated in U.S. government-sponsored exchanges and now form a network of leaders contributing to stronger bilateral relations.
He further announced that construction is underway on the new US Consulate General complex in Eko Atlantic, describing it as one of America’s most significant investments worldwide and “a lasting symbol” of the U.S. commitment to Nigeria.
Earlier at the event, the US Consul General in Lagos, Rick Swart, reflected on his diplomatic career as he prepares to retire from the US Department of State at the end of July.
Mr Swart said the celebration was particularly meaningful given his experience in Lagos after serving in Mali and several other West African countries over the previous 35 years.
He acknowledged Lagos’ diversity, noting its creativity, resilience, innovation, and hospitality towards all its inhabitants.
“Of all the places Bonnie and I could have concluded our diplomatic journey, I cannot imagine a better place than Lagos, Nigeria.
“It has been the honour of my career to serve here in Lagos. The memories and friendships we have made here will stay with us long after we depart,” he said.
Partnership expansion
Also speaking, Lagos State Governor Babajide Sanwo-Olu hailed the American government, describing the United States as a country whose history has shaped global conversations for 250 years.
He said Lagos and the United States have maintained a productive relationship spanning more than six decades through partnerships in finance, technology, healthcare, education, and skills development.
He also said thousands of Nigerians have benefited from exchange programmes and innovations from the United States, expressing confidence that the partnership would create new opportunities for both countries in the years ahead.
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“That singular occasion, idea, and symbol was an act of modern history. There is no part of the world that has not heard of the United States of America. And it continues to shape the global conversation.
“And we’re indeed happy that, for us in Lagos, we have created that relationship for over six decades. We see the United States and Lagos as friends, not new friends, because Nigeria takes a bigger part in that friendship.
“And so one can’t help but feel lucky among the various recipients or beneficiaries of the exchange programmes that we’ve had over this long relationship. We’ve seen relationships in finance, technology, and health. We’ve seen skills being transferred,” Mr Sanwo-Olu said.
The governor noted that Nigeria remains one of America’s largest trading partners in Sub-Saharan Africa and expressed optimism that bilateral businesses and investment would continue to expand.
BY NKECHI NAECHE-ESEZOBOR—The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks with effect from July 1, 2026, as part of efforts to strengthen the stability of the country’s financial system and enforce regulatory compliance.
The apex bank said the action was taken in accordance with its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
According to the CBN, the revocation was approved by its Governor, Mr. Olayemi Cardoso, following the affected banks’ failure to meet the regulatory requirements necessary for continued operation as licensed financial institutions.
The Bank explained that the decision was necessitated by one or more regulatory infractions, including insufficient assets to meet liabilities, closure of operations without prior approval from the CBN, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months of receiving a licence, and failure to maintain the minimum capital requirement unimpaired by losses.
The CBN stated that the revocation forms part of its ongoing supervisory and regulatory measures aimed at safeguarding the stability of the financial sector, protecting depositors, and ensuring that all licensed financial institutions operate in compliance with existing laws and regulatory standards.
The apex bank reaffirmed its commitment to promoting a safe, sound, and resilient financial system, adding that it will continue to take appropriate regulatory and supervisory actions whenever necessary to maintain public confidence in Nigeria’s financial system.
The post CBN Revokes Licences of 46 Microfinance Banks appeared first on Business Today NG.
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