KEY POINTS
- NNPC accused Dangote Refinery of attempting to monopolise Nigeria’s fuel market through its lawsuit against fuel import licences.
- Dangote Refinery argued that fuel imports violate the Petroleum Industry Act and undermine local refining capacity.
- The dispute has intensified concerns over fuel supply stability, energy security, and investor confidence ahead of Dangote Refinery’s planned IPO.
The Nigerian National Petroleum Company Limited, NNPC, has accused the Dangote Petroleum Refinery of attempting to dominate Nigeria’s downstream petroleum sector through its legal challenge against fuel import licences issued to other marketers.
In its defence before the Federal High Court in Lagos, NNPC argued that granting Dangote’s requests could expose Nigeria to fuel shortages, unstable prices, and threats to national energy security.
The state-owned oil company maintained that the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, acted lawfully in issuing import licences to marketers and operators in the sector.
Fuel Imports Still Necessary, NNPC Insists
NNPC stated that the Petroleum Industry Act does not prohibit fuel imports except in situations where there is verified local sufficiency.
According to the company, the law allows import licences to be granted to firms with refining capacity or strong records in petroleum trading, while regulators also retain discretionary powers under the country’s backward integration policy.
The company rejected Dangote Refinery’s interpretation of the law, insisting that fuel imports remain necessary for maintaining supply stability and controlling price volatility in the domestic market.
The dispute originated from a lawsuit filed by Dangote Petroleum Refinery against the Attorney-General of the Federation, NNPC, and other regulatory agencies over the continued issuance and renewal of fuel import licences.
Dangote Refinery is seeking an interim injunction restraining authorities from approving new import licences for Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and Jet A1 fuel.
