NNPC Challenges Dangote in Court Over Fuel Import Licences
The Nigerian National Petroleum Company Limited (NNPC Ltd) has urged the Federal High Court in Lagos to permit the continued importation of petrol, arguing that halting imports would jeopardise Nigeria's energy security. The state oil company warned that restricting import licences could lead to supply deficits, price volatility, and increased risk of monopoly in the downstream sector.
NNPC's court filing opposes a lawsuit by Dangote Petroleum Refinery, which seeks to cancel import permits granted to NNPC and other traders. The company argued that under the Petroleum Industry Act, regulators have the discretion to issue import licences to both domestic refiners and firms with international trading experience.
NNPC stated that Dangote Refinery has not provided credible or verifiable evidence that it can consistently meet Nigeria's petrol demand nationwide without interruption. The case now involves a bid by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to join the attorney-general and independent petrol traders.
Recently, NMDPRA approved six companies to import 720,000 tonnes of petrol, despite growing domestic refining capacity. Hammed Fashola of the Independent Petroleum Marketers Association of Nigeria supported the move, saying Dangote should compete on price rather than seek to halt imports.
PETROAN Warns of Instability
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) cautioned that cancelling import licences could trigger instability and rising prices across the sector. The court case unfolds amid questions about the performance of Nigeria's state-owned refineries, which have struggled despite billions of dollars in investment. Port Harcourt and Warri refineries, relaunched late last year, are facing operational challenges, though NNPC recently signed a memorandum of understanding with Chinese companies to revive them through a Technical Equity Partnership.
Dangote Refinery reached its maximum capacity of 650,000 barrels per day in February 2026 and supplied nearly 80% of Nigeria's daily petrol consumption in April. The refinery previously filed a similar suit in 2024 but withdrew it after government intervention. The current case is expected to be heard in the coming weeks.
Marketers Oppose Dangote's Suit
Earlier reports indicated that marketers are prepared to oppose Dangote's legal action to stop new petrol import licences. The legal battle follows NMDPRA's approval for six companies—NIPCO, AA Rano, Matrix Energy, Shafa, Pinnacle Oil, and Bono Energy—to import about 720,000 metric tonnes of Premium Motor Spirit to support domestic supply.
The outcome of this case could have significant implications for Nigeria's fuel supply, pricing, and the competitive landscape of the downstream petroleum sector.
