NNPC opposes Dangote refinery suit, warns against ‘monopoly

By Abubakar Yunusa

The Nigerian National Petroleum Company (NNPC) Limited has opposed the lawsuit filed by Dangote Petroleum Refinery challenging fuel import licences issued to marketers, warning that restricting imports could expose Nigeria to supply disruptions and monopoly control.

According to Reuters on Friday, NNPC argued before the federal high court in Lagos that granting Dangote refinery’s request to void or restrict import permits would threaten the country’s energy security and destabilise fuel supply.

In the court documents, NNPC said the move could expose Nigeria to “supply disruptions, price instability and risks to national energy security”.

The legal dispute centres on import licences issued or renewed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to fuel marketers and NNPC.

Dangote refinery, reacting to the move, filed a suit in April against the attorney-general of the federation, arguing that the licences undermine local refining and violate provisions of the Petroleum Industry Act (PIA).

Marketers had also kicked against Dangote refinery’s suit, saying it would destabilise the country’s downstream petroleum sector.

NNPC rejected Dangote refinery’s claim, insisting that the law permits the issuance of import licences to firms with local refining licences or proven records in international crude and petroleum products trading.

The company also argued that the regulator retains discretionary powers to manage imports under Nigeria’s backward integration policy.

NNPC said there is no mandatory prohibition on fuel imports except in situations where domestic supply is sufficient.

The national oil company further argued that Dangote refinery failed to provide “credible, independent or verifiable evidence” that it can meet Nigeria’s total fuel demand or guarantee uninterrupted nationwide supply.

NNPC also denied allegations that it deliberately withheld crude supply from the refinery or attempted to frustrate its operations.

According to the filing, crude allocation decisions are based on “operational, commercial, security and logistical factors”.

Also, the NMDPRA has applied to join the suit, widening the legal battle over fuel import policy and Dangote refinery’s growing market position.

Fuel marketers have also opposed the suit, warning that restricting imports could weaken competition and threaten supply stability.

The dispute comes amid plans by Dangote refinery to conduct initial public offering (IPO) in September.