The Nigerian National Petroleum Company (NNPC) Ltd has told a Federal High Court in Lagos that the Dangote Petroleum Refinery cannot yet demonstrate the capacity to fully meet Nigeria’s total fuel demand or guarantee uninterrupted nationwide supply.
According to court documents cited by Reuters, the NNPC made the submission in its defence to a suit filed by the Dangote Group challenging the issuance of fuel import licences to other marketers and the state oil company.
NNPC argued that Dangote Refinery has not provided “credible, independent or verifiable evidence” showing it can single-handedly satisfy the country’s petrol consumption needs. It warned that restricting import licences based on such a claim could expose Nigeria to fuel shortages, price instability, and broader energy security risks.
The state oil company further maintained that existing regulations under the Petroleum Industry Act allow import licences for companies with refining capacity or experience in international crude and product trading. It added that regulators retain discretion to balance imports under Nigeria’s backward integration policy, especially where local supply is insufficient.
Dangote Refinery, owned by industrialist Aliko Dangote, had filed the suit in April against the Attorney General of the Federation and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The company argues that import licences issued to marketers undermine local refining investment and contradict the spirit of the Petroleum Industry Act.
However, NNPC rejected claims that it had sabotaged Dangote’s operations, stating that crude oil allocations are determined by commercial, operational, security, and logistical considerations.
The NMDPRA has also applied to join the case, which is expected to further expand the legal battle over Nigeria’s downstream petroleum policy and market regulation.
Meanwhile, several fuel marketers have opposed Dangote’s suit, warning that limiting imports could reduce competition and weaken fuel supply security.
A hearing in the case is expected in the coming weeks, as the dispute unfolds against the backdrop of Dangote Refinery’s planned initial public offering, which investors are closely watching for its potential impact on Nigeria’s energy market.
