Nigeria's NNPC tells a court that Dangote petrol is too expensive and imports must continue

The Nigerian National Petroleum Company Limited has told the Federal High Court in Lagos that petroleum products from the Dangote Petroleum Refinery are sold at significantly high and fluctuating market prices, and that fuel imports must be allowed to continue to prevent monopoly control and protect Nigerian consumers from price exploitation.

NNPC made the arguments in a counter-affidavit filed in opposition to the Dangote refinery's originating summons in Suit No. FHC/L/CS/857/2026, in which Africa's largest private refinery has asked the court to void import licences recently issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority to six petroleum marketers. The case is before the Federal High Court, Lagos Judicial Division.

In its counter-affidavit, NNPC asked the court to dismiss or strike out the Dangote suit on grounds that it was incompetent, premature, disclosed no cause of action and constituted an abuse of court process. The state oil company said it would raise a preliminary objection challenging the refinery's locus standi. "The plaintiff's suit is premature; the plaintiff lacks locus standi," the affidavit said.

Petroleum Products Retail Outlet Owners Association of Nigeria also filed documents supporting NNPC's position, arguing that competition must be allowed in the petroleum sector to prevent price exploitation, and that multiple sources of petrol supply would bring about a reduction in fuel prices.

The lawsuit arose after the NMDPRA granted import licences to six companies covering between 600,000 and 720,000 metric tonnes of premium motor spirit. The companies cleared to import are NIPCO, AA Rano, Matrix Energy, Shafa Energy, Pinnacle Oil and Gas, and Bono Energy. Dangote argues the approvals violated an existing court order from April 29 that directed all parties to maintain the status quo, and are inconsistent with the Petroleum Industry Act, which he contends only permits imports when domestic supply is insufficient.

The dispute adds a new front to a commercial conflict that has been developing since the refinery began operations in 2024. Dangote has publicly accused NNPC of sabotaging his $20 billion investment by denying the refinery adequate crude supplies and supporting competing fuel imports even as the facility runs above its 650,000-barrel-per-day nameplate capacity. In the first quarter of 2026, domestic refining accounted for approximately 76.7 percent of total national petrol supply, with imports at 965 million litres compared to the refinery's 3.18 billion litres.

NNPC's counter-affidavit represents the most direct formal challenge yet to Dangote's legal strategy. By arguing in court that his petrol prices are too high and that competition from imports is necessary for Nigerian consumers, the state oil company has effectively sided with the marketers whose import licences Dangote wants cancelled. The case is expected to be heard in the coming weeks.