‘We Don’t Want a Monopoly’ — NNPC Raises Alarm Over Dangote Refinery’s Grip on Fuel Market

 By Kehinde Awosina 






The Nigerian National Petroleum Company Limited has raised fresh concerns over what it describes as attempts by the Dangote Petroleum Refinery to limit competition in the downstream petroleum sector, warning that such moves could risk market dominance and disrupt Nigeria’s liberalised fuel supply framework.


The allegation comes amid ongoing tensions in the deregulated petroleum market, where regulatory and supply data continue to shape debates over fuel sufficiency and pricing stability.


According to figures contained in the April Factsheet released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Dangote Refinery supplied an average of 40.7 million litres per day (ML/D) to the domestic market.


The data further indicated that national Premium Motor Spirit (PMS) consumption currently stands at about 51.1 million litres per day, leaving a significant supply gap that is currently met through imports and other distribution channels.


The report also showed that PMS sufficiency levels have declined, dropping from an estimated 20 days to 14 days, raising fresh concerns about buffer stock stability and supply resilience in the downstream sector.


Against this backdrop, the Nigerian National Petroleum Company Limited argued that recent actions and market positions taken by the refinery—particularly its challenge to import licences issued to other marketers—could be interpreted as an attempt to restrict competition and edge the market toward monopoly control.


However, industry stakeholders maintain that the evolving structure of Nigeria’s downstream sector remains highly sensitive, with both local refining output and imports still playing critical roles in meeting national demand.


The debate comes as Nigeria continues its transition from fuel import dependency to domestic refining, with the Dangote facility expected to play a central role in long-term supply stability.


While the refinery has consistently positioned itself as a key solution to Nigeria’s fuel challenges, concerns from state-linked operators highlight the ongoing policy and regulatory balancing act between promoting local refining capacity and maintaining competitive market conditions.


Authorities are expected to continue monitoring supply levels and market behaviour as the downstream sector adjusts to new production realities.

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