National oil company warns that restricting petrol imports could trigger supply shortages, price instability, and monopoly risks…..
The Nigerian National Petroleum Company (NNPC) Limited has pushed back against the lawsuit filed by Dangote Petroleum Refinery seeking to halt the issuance of fuel import licences to marketers, warning that such a move could destabilise Nigeria’s fuel supply chain and threaten national energy security.
According to court filings reported by Reuters on Friday, NNPC argued before the Federal High Court in Lagos that restricting fuel imports in favour of a single refinery could expose the country to supply disruptions, fuel scarcity, and price volatility.
The state-owned oil company maintained that granting Dangote refinery’s request to void or limit import permits would create serious risks for Nigeria’s downstream petroleum sector.
NNPC told the court that preventing marketers from importing fuel could lead to “supply disruptions, price instability and risks to national energy security.”
The legal dispute revolves around import licences issued or renewed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to fuel marketers and NNPC itself.
Dangote refinery had earlier approached the court in April, challenging the licences and arguing that continued fuel imports undermine local refining efforts and violate provisions of the Petroleum Industry Act (PIA).
The refinery reportedly sued the Attorney-General of the Federation and other parties, insisting that Nigeria should prioritise locally refined petroleum products over imports.
However, NNPC rejected the claims, arguing that the law still permits the issuance of import licences to companies with valid refining licences or established records in crude oil and petroleum products trading.
The company further stated that the NMDPRA retains discretionary authority to regulate imports under the country’s backward integration policy.
According to NNPC, there is no legal provision that outrightly bans fuel imports unless local refineries can sufficiently meet national demand.
The national oil company also questioned Dangote refinery’s capacity to fully supply the Nigerian market without interruptions.
In its court filing, NNPC argued that the refinery had failed to provide “credible, independent or verifiable evidence” proving it can consistently satisfy Nigeria’s fuel needs nationwide.
NNPC additionally denied allegations that it deliberately frustrated Dangote refinery’s operations by withholding crude oil supply.
The company said crude allocation decisions are based on operational realities, commercial considerations, logistics, and security factors rather than attempts to undermine any refinery.
Meanwhile, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has also applied to join the lawsuit, further intensifying the legal battle over Nigeria’s fuel import policy.
Fuel marketers have equally opposed Dangote refinery’s position, warning that limiting imports could weaken market competition and create supply uncertainties across the country.
The dispute comes at a critical time as Dangote refinery prepares for a planned Initial Public Offering (IPO) expected later this year.
Industry analysts say the outcome of the case could significantly shape the future of Nigeria’s downstream petroleum market, fuel pricing structure, and competition within the sector.