The Nigerian National Petroleum Company Limited has urged the Federal High Court in Lagos to dismiss a suit filed by Dangote Petroleum Refinery seeking to invalidate fuel import licences issued to marketers, warning that the move could destabilise supply, trigger price shocks and hand the downstream market to a single dominant player.
In a strong legal opposition, the NNPC Limited told the court that granting Dangote Refinery’s request would expose Nigeria’s petroleum sector to serious risks, including supply disruptions and threats to national energy security.
The dispute centres on import licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to fuel marketers and the national oil company, amid ongoing tensions over the structure and competitiveness of Nigeria’s downstream petroleum market.
Dangote Petroleum Refinery had approached the court seeking to void or restrict the import permits, arguing that continued issuance of licences undermines local refining capacity and conflicts with provisions of the Petroleum Industry Act, which prioritises domestic production.
But in its counter-affidavit, the NNPC Limited insisted that restricting imports would be economically and operationally dangerous, arguing that Nigeria cannot rely solely on a single domestic refinery to meet nationwide fuel demand.
The company maintained that existing regulations empower the downstream regulator to issue import licences where necessary, especially under the government’s broader energy security and backward integration framework.
According to NNPC Limited, there is no blanket restriction on fuel importation under Nigerian law, stressing that imports remain critical whenever local production falls short of national consumption needs.
It further argued that Dangote Petroleum Refinery has not provided sufficient independent evidence to demonstrate that it can consistently meet Nigeria’s total fuel requirements or guarantee uninterrupted nationwide supply.
NNPC Limited also dismissed allegations suggesting it deliberately frustrates the refinery’s operations by withholding crude supply, insisting that crude allocation decisions are guided by operational, commercial, security and logistical considerations.
The NMDPRA has also applied to join the suit, further widening the legal and regulatory battle over fuel import policy and the competitive structure of the downstream petroleum sector.
Meanwhile, petroleum marketers have backed the continued issuance of import licences, warning that any restriction could weaken competition, distort pricing and threaten fuel availability across the country.
The legal showdown comes at a sensitive period for Nigeria’s energy market, as Dangote Petroleum Refinery prepares for a planned initial public offering later in the year, a move expected to further reshape investor interest in the downstream sector.
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