NNPC Warns Dangote Import Ban Bid Could Threaten Nigeria’s Energy Security
Nigeria’s state oil firm, NNPC Limited, has accused Dangote Petroleum Refinery of attempting to stifle competition and establish monopoly control over the country’s fuel market by challenging import licences issued to rival marketers.
According to court documents seen by Reuters, NNPC, in a proposed defence filed before the Federal High Court in Lagos, argued that granting Dangote Refinery’s request to cancel or restrict fuel import permits could expose Nigeria to supply shortages, price instability, and threats to national energy security.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority has also applied to join the suit, further intensifying the legal battle surrounding fuel importation and the market dominance of the 650,000 barrels-per-day refinery.
The dispute comes ahead of Dangote Refinery’s planned September initial public offering (IPO), raising concerns over future market regulations, competition, and revenue projections for the refinery business.
Dangote Petroleum Refinery had filed the suit in April against Nigeria’s Attorney General, challenging import licences granted or renewed by the NMDPRA to marketers and NNPC. The refinery argued that continued import approvals undermine local refining efforts and violate provisions of the Petroleum Industry Act.
However, NNPC maintained that the law permits the issuance of import licences to companies holding refining licences or with established records in crude oil and petroleum products trading.
The national oil company further argued that regulators retain discretionary powers to manage fuel imports under Nigeria’s backward integration policy, insisting there is no legal provision mandating a complete ban on imports except where local supply becomes sufficient.
NNPC also told the court that Dangote Refinery had failed to provide “credible, independent or verifiable evidence” proving it could consistently meet Nigeria’s total fuel demand or guarantee uninterrupted nationwide supply.
The company denied allegations that it deliberately frustrated Dangote Refinery’s operations or withheld crude oil supplies, stating that crude allocation decisions are based on operational, commercial, security, and logistical considerations.
Dangote Refinery declined to comment on the matter, citing the ongoing court proceedings.
Fuel marketers have equally opposed the suit, warning that restricting imports could negatively affect market competition and threaten fuel supply stability across the country.
The Federal High Court is expected to hear the matter in the coming weeks.
