NNPC Challenges Dangote in Court, Gives Reason Petrol Importation Must Continue
- The NNPC has asked the Federal High Court in Lagos to allow fuel importation to continue
- The oil company warns that restricting licences could trigger supply shortages, price volatility, and energy security risks
- The state oil company is opposing Dangote Petroleum Refinery’s lawsuit seeking to cancel import permits
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigerian National Petroleum Company Limited (NNPC Ltd) has told a court that importing petrol must continue in order to safeguard Nigeria against supply deficits, price increases and the possibility of a monopoly in the downstream sector.
The court filings at the Federal High Court in Lagos contain NNPC's argument against Dangote Petroleum Refinery's attempt to overturn the issuance of fuel import licences to NNPC and a number of other petroleum traders.
Source: Getty Images
NNPC and Dangote in court
According to documents filed with the court and viewed by Reuters, NNPC argued that halting fuel imports would affect Nigeria's energy security, reduce market competitiveness, and that under the Petroleum Industry Act, regulators are allowed to grant import licences to both companies capable of processing fuels domestically and to firms with a track record in international petroleum trading, giving regulators discretional power under Nigeria's backward integration policy.
The company stated that Dangote Refinery failed to provide "credible, independent or verifiable evidence that it is capable of meeting Nigeria's petrol requirement consistently nationwide without interruption."
The lawsuit now involves a bid by the Nigerian Midstream and Downstream Petroleum Regulatory Authority to join the attorney-general and independent petrol traders.
Recently, the regulator issued approvals for six companies to import 720,000 tonnes of petrol, despite growing domestic refining capacity, a move which Hammed Fashola of the Independent Petroleum Marketers Association of Nigeria supported, stating Dangote should compete on price rather than seek to halt imports.
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PETROAN speaks
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) warned of potential instability and rising prices across the sector if import licenses are cancelled, BusinessDay reports.
The court case comes amid questions surrounding the performance of Nigeria's own state-owned refineries despite billions of dollars of government investment: despite billions already spent on Port Harcourt, Warri and Kaduna, the former two, relaunched late last year, are struggling with sustained operations, though NNPC recently signed an MOU to revive them through Technical Equity Partnership with Chinese companies.
Source: Twitter
Dangote Refinery met its maximum 650,000 barrel-per-day capacity in February 2026 and was supplying almost 80% of Nigeria's daily petrol consumption in April.
The refinery previously sued over the issue in 2024 but withdrew the case after government intervention.
The case is expected to be heard in the coming weeks.
Marketers fight back as Dangote files
Earlier, Legit.ng reported that marketers are ready to oppose a suit filed by the Dangote Petroleum Refinery to stop the issuance of new petrol import licences in the country.
The legal battle followed recent approvals granted by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to six companies to import about 720,000 metric tonnes of Premium Motor Spirit (petrol) to support domestic supply.
Marketers approved to import PMS are: NIPCO, AA Rano, Matrix Energy, Shafa, Pinnacle Oil, and Bono Energy.
Source: Legit.ng
