Dangote Draws Battle Lines as Fuel Import Fight Heads Back to Court

Aliko Dangote, President of Dangote Industries Limited, has said he is prepared to face legal challenges as the dispute over fuel imports, domestic refining and import licences intensifies in Nigeria.

Dangote spoke amid renewed litigation involving the Dangote Petroleum Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) over the continued importation of refined petroleum products into Nigeria.

The latest development followed a Federal High Court ruling in Abuja directing the NMDPRA to continue granting, extending or renewing fuel import licences for Matrix Energy, A.A. Rano and AYM Shafa, provided the companies meet the relevant legal and regulatory requirements.

Justice Inyang Ekwo ruled that the regulator’s handling of the companies’ applications did not comply with provisions of the Petroleum Industry Act (PIA). The court also held that the NMDPRA has a responsibility to promote competition in the midstream and downstream petroleum sectors.

The ruling did not give the three companies unrestricted authority to import petroleum products. Their operations remain subject to applicable regulatory and statutory requirements.

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The judgment has added fresh momentum to a wider dispute over whether Nigeria should continue granting petrol import licences as domestic refining capacity expands.

The Dangote Refinery, which has a stated capacity of 650,000 barrels per day, has challenged the continued issuance or renewal of some import licences in a separate case.

The refinery’s position is that continued imports should be restricted where domestic refining capacity is available to supply the local market. The case remains before the court.

The NMDPRA, however, has continued to approve import permits, citing the need to safeguard petroleum supply and energy security.

The regulator approved permits covering about 830,000 metric tonnes of petrol for several marketers for the fourth quarter of 2026. The beneficiaries included Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Gas and Bono Energy.

The development has intensified debate over competition in Nigeria’s downstream oil sector, particularly as the Dangote Refinery expands its contribution to domestic fuel supply.

Dangote’s comments also came as his business interests face other legal challenges outside Nigeria.

In Kenya, a court has ordered the preservation of the existing status quo over land earmarked for Dangote’s proposed 700,000-barrel-per-day refinery in Lamu, following a dispute involving residents who claim ancestral rights over part of the proposed project site.

Dangote has maintained that he is prepared to defend his investments through the legal process.

The businessman has also said Africa could largely eliminate its dependence on imported refined petroleum products by 2030, as new refineries come on stream across the continent.

In Nigeria, the continuing dispute places domestic refining, fuel imports, competition, petroleum regulation and energy security at the centre of an increasingly significant legal and commercial battle.

The competing positions have not been finally resolved, with the various court cases still ongoing.

Dangote Draws Battle Lines as Fuel Import Fight Heads Back to Court

NNPC Profit Rises to N7.2tn Despite Revenue Decline

The Nigerian National Petroleum Company Limited (NNPC Ltd) recorded a N7.2 trillion profit after tax in 2025, representing a 33.3 per cent increase from the N5.4 trillion it reported in 2024, despite a significant decline in revenue.

NNPC Group Chief Executive Officer, Bayo Ojulari, disclosed the figures on Tuesday while presenting the company’s audited financial results for the 2025 financial year in Abuja.

The company recorded N34.5 trillion in revenue in 2025, down from N45.1 trillion reported for 2024. Despite the revenue decline, profit increased as NNPC attributed the stronger bottom-line performance to improved operational efficiency and financial discipline.

Ojulari said lower international crude oil prices and reduced petroleum product sales, following changes in the downstream petroleum market, put pressure on revenue during the year.

However, improved operational performance helped cushion the impact, allowing NNPC profit to rise to N7.2 trillion.

The company also reported N22.33 trillion in taxes, royalties and other remittances to the Federal Government, representing a 39 per cent increase compared with the previous year.

The results also showed stronger production performance across the company’s upstream operations.

According to NNPC, crude oil and condensate production reached an average peak of 1.77 million barrels per day in 2025, the company’s highest level in five years.

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Domestic gas supply also rose to a three-year high of 7.2 billion standard cubic feet per day, reflecting increased gas production and supply to the Nigerian market.

NNPC said the financial performance demonstrated the impact of efforts to improve asset management, increase production and strengthen efficiency across its businesses.

The company’s latest results come as Nigeria continues to seek higher crude oil production, increased domestic gas supply and greater investment across the petroleum value chain.

NNPC, which became a commercial company under the Petroleum Industry Act (PIA) in 2022, has been pursuing a strategy focused on increasing oil and gas output, expanding gas monetisation and strengthening its downstream operations.

The company said its future growth strategy would require continued investment in infrastructure, workforce development and operational capabilities.

NNPC also highlighted investments in digital capabilities and artificial intelligence as part of efforts to improve efficiency and strengthen its workforce.

More than 1,000 newly recruited professionals joined the company in 2025 and underwent a one-year internship and training programme before being deployed across its operations.

The company also reported that women now occupy more than 23 per cent of its leadership positions, compared with an industry average of 17 per cent.

The 2025 results come against the backdrop of major changes in Nigeria’s petroleum sector, including the removal of petrol subsidy and increased private-sector participation in fuel supply.

NNPC said the improved profitability had strengthened its capacity to invest in operations, contribute to government revenue and support Nigeria’s energy security.

The company’s performance will continue to be closely watched as Nigeria seeks to raise oil production, expand gas utilisation and increase the economic contribution of the oil and gas sector.

NNPC Profit Rises to N7.2tn Despite Revenue Decline

Crude Oil Prices Ease After Monday Spike, Fuel Price Cuts Loom

Global crude oil prices eased on Tuesday after a sharp rally triggered by renewed uncertainty over the possibility of a ceasefire between the United States and Iran, offering some relief to an oil market that has remained highly sensitive to geopolitical developments.

Brent crude, the international benchmark, fell to about $105.04 per barrel, while US West Texas Intermediate (WTI) declined to $92.24 per barrel, according to Reuters. The prices had risen sharply earlier amid concerns over possible disruptions to Middle East oil supplies.

The latest movement is particularly significant for Nigeria, where changes in international crude prices are increasingly reflected in the domestic petrol market following the removal of petrol subsidy and the operation of a largely market-driven downstream petroleum sector.

Nigeria has in recent weeks witnessed significant fluctuations in petrol prices as international crude prices rose on the back of Middle East tensions.

Dangote Petroleum Refinery, which has become a major source of domestic petrol supply, raised its gantry price to N1,350 per litre earlier in September before subsequently reducing it by N25 to N1,325 per litre as crude prices eased.

The impact has also begun to filter through to some retail outlets. Recent checks showed petrol selling at varying prices across the country, with some marketers reducing pump prices by between N20 and N25 per litre in response to lower wholesale costs.

In Abuja, for instance, MRS reportedly reduced its pump price from N1,395 to N1,370 per litre, while other marketers also adjusted their prices downward.

However, the latest fall in crude prices does not necessarily translate into an immediate or uniform reduction at filling stations.

This is because the price motorists pay is influenced by several factors, including the cost of crude, refining and wholesale prices, transportation and logistics, exchange-rate movements, and the margins of individual marketers.

Nigeria’s dependence on crude oil makes developments in the international petroleum market particularly important to the domestic economy.

Although the Dangote refinery has substantially increased local refining capacity and reduced reliance on imported petrol, international crude prices remain an important factor in determining the cost of feedstock and, ultimately, petroleum products.

The recent volatility has therefore kept motorists, transport operators and businesses on alert, with any sustained decline in crude prices potentially creating room for further reductions in petrol prices.

The latest crude movement followed reports of renewed diplomatic tension between Washington and Tehran.

Iran had reportedly proposed a seven-day truce, but US President Donald Trump rejected the proposal, triggering fresh concerns about the outlook for regional stability and oil supplies.

Crude prices surged during Monday’s trading session before retreating as investors reassessed the immediate supply risks and continued to monitor diplomatic efforts.

For Nigerian consumers, the key issue now is whether the downward movement in international crude prices will be sustained long enough to translate into broader and more significant reductions in petrol prices at filling stations.