The Nigerian National Petroleum Company Limited (NNPC) has strongly opposed the lawsuit filed by Dangote Petroleum Refinery over fuel import licences, warning that any move to restrict fuel imports could hand excessive market control to a single player and expose Nigeria to supply shortages. The state-owned oil company made its position known before the Federal High Court in Lagos, arguing that fuel importation remains critical to maintaining stability in the nation’s energy sector.
At the heart of the dispute is a legal challenge by Dangote Refinery against fuel import licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to marketers and NNPC. The refinery, which filed the suit in April, contends that continued issuance of import permits undermines local refining efforts and contradicts provisions of the Petroleum Industry Act (PIA), which seeks to encourage domestic petroleum production.
However, NNPC maintains that restricting import licences could jeopardize Nigeria’s fuel supply chain. According to court filings, the company warned that such a move could trigger supply disruptions, price volatility, and broader risks to national energy security. NNPC further argued that existing laws allow the regulator to grant import licences to qualified companies with refining licences or established records in international petroleum trading.
The national oil company also dismissed claims that it had deliberately withheld crude oil supplies from Dangote Refinery or attempted to hinder its operations. It stated that crude allocation decisions are based on operational, commercial, logistical, and security considerations. In addition, NNPC argued that Dangote Refinery had not presented sufficient independent evidence proving it can consistently meet Nigeria’s nationwide fuel demand without support from imported products.
Meanwhile, the legal battle continues to attract wider industry attention, with fuel marketers joining the opposition against the refinery’s suit and warning that limiting imports could weaken competition in the downstream sector. The NMDPRA has also applied to be joined in the case, further intensifying the debate over Nigeria’s fuel import policy and the growing influence of Dangote Refinery, which is also preparing for a planned Initial Public Offering (IPO) later this year.
source: The cable