Fresh Drama: NNPC opposes Dangote refinery suit in Court, warns against ‘monopoly control’ of fuel market
The Nigerian National Petroleum Company (NNPC) Limited has opposed the lawsuit filed by Dangote Petroleum Refinery challenging the issuance of fuel import licences to marketers, warning that restricting imports could expose Nigeria to supply disruptions and monopoly control.
According to Reuters, NNPC told the Federal High Court in Lagos that granting Dangote refinery’s request to void or restrict import permits could threaten the country’s energy security and destabilise fuel supply nationwide.
In court documents, the national oil company argued that such a move could expose Nigeria to “supply disruptions, price instability and risks to national energy security.”
The legal dispute centres on import licences issued or renewed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to fuel marketers and NNPC.
Dangote refinery had filed the suit in April against the Attorney-General of the Federation, contending that the issuance of import licences undermines local refining efforts and violates provisions of the Petroleum Industry Act (PIA).
Fuel marketers had also criticised the suit, arguing that it could destabilise Nigeria’s downstream petroleum sector.
Rejecting Dangote refinery’s claims, NNPC maintained that the law permits the issuance of import licences to companies with local refining licences or established records in international crude oil and petroleum products trading.
The company further argued that the NMDPRA retains discretionary powers to regulate imports under Nigeria’s backward integration policy.
NNPC added that there is no mandatory prohibition on fuel imports except in cases where domestic supply is proven to be sufficient.
The oil company also stated that Dangote refinery failed to provide “credible, independent or verifiable evidence” demonstrating its capacity to meet Nigeria’s total fuel demand or guarantee uninterrupted nationwide supply.
NNPC further denied allegations that it deliberately withheld crude oil supply from the refinery or sought to frustrate its operations.
According to the filing, crude allocation decisions are guided by “operational, commercial, security and logistical factors.”
Meanwhile, the NMDPRA has applied to join the suit, further expanding the legal battle over Nigeria’s fuel import policy and Dangote refinery’s growing influence in the market.
Fuel marketers have also opposed the lawsuit, warning that restricting imports could reduce competition and threaten supply stability.
The dispute comes amid plans by Dangote refinery to launch its initial public offering (IPO) in September.