Nigeria's Dangote Refinery and NNPC dispute fuel import licences

Nigeria’s downstream petroleum sector is embroiled in a legal battle between the privately owned Dangote Petroleum Refinery and the state‑run Nigerian National Petroleum Company Limited (NNPCL). Dangote has filed a lawsuit to stop the issuance of new fuel import licences, arguing that its 650,000‑barrel‑per‑day refinery now supplies roughly 80 % of the country’s petrol demand and that domestic refining capacity can meet a substantial share of national consumption. The NNPCL counters that continued imports are needed to preserve competition, protect consumers from price shocks and avoid supply disruptions.

The dispute comes as imported gasoline volumes have fallen sharply, with local refineries providing about 76.7 % of the nation’s fuel in the first quarter of 2026. Proponents of the refinery contend that reducing imports could ease pressure on Nigeria’s foreign‑exchange reserves, boost macro‑economic stability and generate billions of dollars in export earnings, while critics warn that restricting imports might create monopoly risks. The outcome of the court case is expected to shape Nigeria’s energy‑security strategy, refining policy and the broader industrial investment climate.