NNPC Challenges Dangote Refinery Bid to Restrict Fuel Imports as Legal Battle Deepens

The Nigerian National Petroleum Company (NNPC Limited) has opposed a legal move by Dangote Petroleum Refinery seeking to restrict fuel import licences issued to marketers, arguing that such a step could destabilise supply and tilt Nigeria’s downstream market.

According to Reuters on Friday, NNPC told a federal high court in Lagos that the request by Dangote Refinery to invalidate or limit import permits would expose the country to avoidable risks in fuel availability, pricing and overall energy security.

In filings cited by Reuters, the national oil company said the proposal could trigger “supply disruptions, price instability and risks to national energy security,” insisting that Nigeria’s fuel market structure depends on a balance between local refining and controlled imports.

The dispute centres on import licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to fuel marketers and, in some cases, NNPC itself. Dangote Refinery is challenging the legality and continued issuance of these permits, arguing they undermine domestic refining capacity and contradict the objectives of the Petroleum Industry Act (PIA).

The refinery, which is the largest single-train facility in Africa, maintains that increased local production should significantly reduce reliance on imported petroleum products and strengthen Nigeria’s self-sufficiency in refined fuel supply.

But NNPC countered that existing laws permit import licences for qualified marketers and companies with established trading capacity, adding that the regulatory framework is designed to prevent supply shocks in the event of local production shortfalls.

It further argued that Nigeria’s backward integration policy allows imports where domestic supply is insufficient, stressing that there is no blanket restriction on fuel imports under current regulations.

NNPC also told the court that Dangote Refinery had not provided credible evidence showing it can fully meet Nigeria’s national fuel demand or guarantee uninterrupted supply across the country.

Responding to allegations that it was frustrating crude allocation to the refinery, NNPC said such decisions are guided by operational, commercial, security and logistical considerations, not political or competitive motives.

Fuel marketers involved in the case have also opposed Dangote Refinery’s suit, warning that restricting import licences could weaken competition and create supply vulnerabilities in the downstream sector.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has applied to join the case, expanding what is shaping up to be a major legal and policy test for Nigeria’s fuel import and refining framework.

The case comes at a time when Dangote Refinery is preparing for a possible initial public offering (IPO), a development expected to further heighten scrutiny of its role in Nigeria’s evolving energy market.