A fresh legal battle is unfolding in Nigeria’s oil sector as the Nigerian National Petroleum Company (NNPC) told a Federal High Court that Dangote Petroleum Refinery cannot yet guarantee enough fuel supply for the entire country.
According to court documents reported by Reuters, NNPC argued that the refinery has not provided sufficient proof that it can consistently meet Nigeria’s petrol demand nationwide.
The dispute began after Dangote Refinery filed a lawsuit against the Federal Government and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Dangote reportedly challenged the continued issuance of fuel import licences to marketers and oil companies, arguing that such permits weaken local refining and go against parts of the Petroleum Industry Act.
However, NNPC strongly disagreed.
In its response filed before the Federal High Court in Lagos, the national oil company warned that stopping fuel import licences too early could create serious problems for the country.
According to NNPC, relying entirely on one refinery without proven nationwide supply capacity could expose Nigeria to fuel shortages, unstable prices and broader energy security risks.
The company insisted that Dangote Refinery has not yet presented “credible” and independently verified evidence showing it can fully satisfy Nigeria’s fuel needs without interruption.
NNPC also defended the current import system, explaining that Nigerian laws still allow regulators to issue import licences where necessary, especially if local supply remains insufficient.
The oil company rejected allegations that it deliberately frustrated Dangote’s operations, stating that crude oil allocations are influenced by logistics, security and operational realities.
Meanwhile, several fuel marketers are also reportedly opposing Dangote’s lawsuit, warning that limiting fuel imports could reduce market competition and affect fuel availability across the country.
The NMDPRA has now applied to join the case, further expanding what is becoming one of the biggest fuel sector disputes in recent times.
The legal fight is attracting major attention because it comes just months before Dangote Refinery’s planned public share offering expected later this year.
Industry observers believe the outcome of the case could significantly shape Nigeria’s fuel market, import policies and competition within the petroleum sector.
A court hearing is expected in the coming weeks.
Source: Reuters
