Nigeria's State Oil Firm Accuses Dangote of Attempting to Monopolize Country's Oil Market

The Nigerian National Petroleum Company (NNPC) has accused the Dangote oil refinery, owned by billionaire Aliko Dangote, of attempting to establish a monopoly over the country's fuel market by challenging fuel import licenses issued to competitors, Reuters reported, citing court documents.

In April, Dangote filed a lawsuit against Nigeria's Attorney General and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The company sought to cancel or restrict import licenses, arguing that they hinder the development of domestic oil refining.

The NNPC rejected the company's claims, stating that the law allows import licenses to be issued to companies with the appropriate permits and experience in international petroleum product trading. In documents filed with the Federal High Court in Lagos, the NNPC stated that granting Dangote's demands could lead to supply disruptions, price instability, and threats to Nigeria's energy security.

In April, former Nigerian President Olusegun Obasanjo stated that the oil refineries of the state-owned NNPC in Port Harcourt, Warri, and Kaduna would "never work," despite efforts to find technical partners to operate them. He reported that the NNPC facilities are "too small, poorly maintained, and have too much corruption surrounding them."