Nigeria TV Info 

Dangote Faces Price War as NNPC Backs Fuel Imports

Fresh tensions have erupted in Nigeria’s downstream oil sector as the Nigerian National Petroleum Company Limited (NNPC) defended continued fuel imports amid an ongoing legal battle with the Dangote Petroleum Refinery. The dispute has intensified concerns over fuel pricing, market competition, and the future of local refining in the country.

According to court filings before the Federal High Court in Lagos, NNPC argued that granting Dangote Refinery exclusive market protection could create a monopoly in Nigeria’s petroleum sector. The state oil firm maintained that imported fuel remains necessary to ensure price stability, competition, and uninterrupted supply across the country.

The Dangote Refinery, owned by Aliko Dangote, had filed a suit challenging fuel import licences issued to NNPC and several marketers. The refinery argued that Nigeria’s domestic refining capacity, especially from its 650,000 barrels-per-day facility in Lekki, is now sufficient to meet national demand and reduce dependence on imported petrol.

However, fuel marketers and industry stakeholders have pushed back strongly against Dangote’s position. Petroleum dealers warned that restricting imports could disrupt supply chains and weaken market competition. They argued that multiple suppliers are needed to prevent price manipulation and keep petrol prices affordable for Nigerians.

The disagreement comes amid renewed volatility in global oil markets triggered by geopolitical tensions and rising crude oil prices. In recent months, petrol prices in Nigeria have fluctuated sharply, with marketers citing high landing costs and exchange rate pressures.

Industry analysts say the rivalry between Dangote Refinery and NNPC could trigger a prolonged price war in the downstream sector, similar to previous price cuts witnessed in 2025 when both sides competed aggressively for market share.

The outcome of the court case is expected to shape Nigeria’s fuel market structure, determine the role of imports, and influence future fuel pricing across Africa’s largest economy.