NNPC opposes Dangote import licence suit, warns of fuel supply risks

The Nigerian National Petroleum Company (NNPC) Limited has opposed the lawsuit filed by Aliko Dangote’s refinery challenging fuel import licences issued to marketers, warning that restricting imports could expose Nigeria to supply disruptions and monopoly control.

NNPC, in court documents filed before a federal high court in Lagos, argued that granting the request by the Dangote petroleum refinery to void or restrict fuel import permits would threaten the country’s energy security and destabilise fuel supply nationwide.

The legal dispute centres on licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to fuel marketers and NNPC for the importation of petroleum products.

Dangote refinery had filed a suit in April against the Attorney-General of the Federation, insisting that the import licences undermine local refining and violate provisions of the Petroleum Industry Act.

Reacting to the suit, NNPC maintained that the law permits the issuance of import licences to companies with local refining licences or established records in crude oil and petroleum products trading.

The national oil company also argued that the regulator retains discretionary powers to manage fuel imports under Nigeria’s backward integration policy.

According to NNPC, there is no law mandating a total ban on fuel imports except when domestic production becomes fully sufficient to meet national demand.

The company further argued that Dangote refinery failed to provide “credible, independent or verifiable evidence” proving it can independently satisfy Nigeria’s fuel needs without interruptions.

NNPC also denied allegations that it deliberately withheld crude oil supply from the refinery or attempted to frustrate its operations, stating that crude allocation decisions are guided by operational, commercial, security and logistical considerations.

Fuel marketers have equally opposed the suit, warning that restricting imports could weaken competition and create instability in the downstream petroleum market.

The legal battle comes amid plans by Dangote refinery to launch an initial public offering later this year.