NNPC, marketers oppose Dangote’s bid to stop fuel imports
The Nigerian National Petroleum Company Limited has opposed moves by the Dangote Petroleum Refinery to stop fuel importation into Nigeria, warning that such action could give the refinery too much control over the downstream petroleum sector.
The position was contained in a counter-affidavit filed before the Federal High Court in Lagos in response to a suit by the Dangote refinery challenging the issuance of petrol import licences by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The refinery had asked the court to void licences issued to fuel importers and the NNPC, arguing that local refining capacity can meet the country’s petrol demand and that continued importation weakens domestic refining efforts.
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However, the NNPC told the court that petroleum products from the Dangote refinery are sold at high and unstable prices driven by market interests. The company argued that depending on one supplier could create supply problems, price instability and risks to national energy security.
According to the NNPC, Dangote refinery has not provided independently verified evidence proving it can guarantee uninterrupted fuel supply across the country. The company added that fuel distribution involves more than refining, including storage, transportation and nationwide logistics.
The oil firm also maintained that the Petroleum Industry Act does not ban fuel importation, saying regulators still have the authority to issue import licences in the interest of market stability and energy security.
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The NNPC further denied allegations that it deliberately frustrated Dangote refinery operations or blocked crude oil supply to the company.
Oil marketers under the Petroleum Products Retail Outlet Owners Association of Nigeria also backed the continued importation of petroleum products. The association said competition in the sector is necessary to prevent price exploitation and ensure stable fuel supply.
PETROAN President Billy Gillis-Harry said no single operator should dominate the downstream sector, regardless of investment size or refining capacity. He added that competition encourages fair pricing, efficiency and product availability.
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The legal dispute marks another major confrontation between the Dangote refinery and government oil agencies since the refinery began operations in Lekki. The disagreement centres on fuel importation, crude oil supply and the implementation of the Petroleum Industry Act after the removal of petrol subsidy in 2023.
The Dangote refinery has repeatedly pushed for stronger support for local refining and restrictions on imports, insisting that continued fuel importation undermines domestic production.
