NNPC Opposes Dangote’s Legal Action
The Nigerian National Petroleum Company Limited has asked the Federal High Court in Lagos to dismiss a suit filed by Dangote Petroleum Refinery.
NNPC argued that granting the refinery’s requests could create monopoly control in Nigeria’s downstream petroleum sector.
The company stated this in a counter-affidavit filed before the Federal High Court, Lagos Judicial Division.
It said Dangote refinery’s petroleum products already sell at high and unstable market prices.
NNPC also described the suit as premature and lacking legal standing.
Dangote Challenges Import Licences
Dangote refinery had challenged the issuance of petrol import licences to marketers and NNPC.
The refinery accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority of approving fuel imports despite strong local refining capacity.
It argued that the licences violated regulations and earlier court directives.
Dangote also claimed that continued imports weaken domestic refining and hurt its multibillion-dollar investment.
NNPC Raises Supply Concerns
NNPC said the refinery failed to provide independent proof that it can meet Nigeria’s fuel demand.
The company argued that refining capacity alone does not guarantee national supply.
It said fuel distribution also depends on storage, transportation, logistics, and strategic reserves.
According to NNPC, relying on one supplier could expose Nigeria to energy risks.
The company warned that any disruption at the refinery could trigger fuel shortages and market instability.
Monopoly Fears Drive Opposition
NNPC told the court that Dangote’s request could push out other operators in the importation and supply chain.
It warned that such a move could weaken competition and hurt consumers.
The company said a monopoly could distort prices, reduce supply flexibility, and threaten economic stability.
NNPC insisted that multiple supply channels remain necessary for energy security.
Company Defends Import Licences
The national oil firm defended the continued issuance of import licences.
It said the licences remain lawful under the Petroleum Industry Act.
NNPC explained that the law gives regulators discretionary powers over backward integration policy.
It added that no section of the law imposes a total ban on petroleum imports.
The company also denied claims that it blocked crude oil supply to Dangote refinery.
It said supply decisions depend on commercial agreements, security issues, logistics, and production realities.
Marketers Back Competitive Market
The Petroleum Products Retail Outlet Owners Association of Nigeria supported NNPC’s position.
Its National President, Billy Gillis-Harry, said competition remains vital for price stability and product availability.
He warned against allowing the downstream sector to tilt toward monopoly.
According to him, healthy competition can reduce fuel prices and protect consumers from price exploitation.
He added that multiple operators help prevent supply disruptions and artificial scarcity.
Refiners Continue Import Debate
The dispute has deepened divisions within Nigeria’s petroleum sector.
The Crude Oil Refineries Association of Nigeria has also challenged continued fuel importation.
The group argued that local refiners have shown stronger long-term commitment through heavy investment.
However, marketers and regulators maintain that Nigeria still needs several supply channels.
They cited distribution challenges, emergency supply needs, and uncertain national demand.
Court Battle Highlights Industry Tension
This case marks another major legal clash between Dangote refinery and government oil agencies.
The dispute centers on fuel imports, crude supply, market competition, and energy policy.
Since fuel subsidy removal in 2023, competition among refiners, importers, marketers, and regulators has intensified.
The court’s decision could shape the future of Nigeria’s downstream oil sector.
