The Nigerian National Petroleum Company Limited (NNPC Ltd.) and the Office of the Attorney General of the Federation (AGF) have mounted a strong legal defence against Dangote Refinery’s fresh bid to halt petroleum product imports, warning that the move could destabilise Nigeria’s fuel supply system and threaten national energy security.
The dispute, now before the Federal High Court in Lagos under suit number FHC/L/CS/857/2026, marks one of the most consequential clashes yet in Nigeria’s downstream petroleum market. Dangote Refinery is seeking a court order to stop the Federal Government and regulators from issuing or renewing import licences for Premium Motor Spirit (PMS), Automotive Gas Oil (AGO) and Jet A1, insisting its refining capacity can meet the country’s fuel demand.
Beyond the import restriction request, the refinery also accused the Federal Government and its agencies of failing to provide adequate crude oil supply needed to sustain its operations.
NNPCL, however, is pushing back forcefully. In submissions made to the AGF, the national oil company argued that granting Dangote’s requests could weaken Nigeria’s energy security framework and interfere with statutory responsibilities assigned to it under the Petroleum Industry Act (PIA).
The matter took a procedural twist after the Federal High Court, on April 29, ordered all parties to maintain the status quo pending further proceedings. Court documents show NNPCL was served with the order on May 4, prompting the AGF to seek the company’s official position three days later. NNPCL responded on May 8 ahead of the scheduled hearing.
Sources familiar with the proceedings disclosed that NNPCL considers the current suit substantially similar to an earlier 2024 case filed by Dangote Refinery, identified as FHC/ABJ/CS/1324/2024, which was later discontinued after defendants mounted a robust legal challenge. The company argued that the new filing attempts to revive similar claims under Sections 317(8) and 317(9) of the Petroleum Industry Act.
In its legal position, NNPCL maintained that Section 317(9) can only become operational through a formally activated Backward Integration Policy under Section 317(8), stressing that no gazette, directive or official instrument has been issued to activate the provision. It added that the law affects its own operations due to its trading activities and ownership interests in the Port Harcourt, Warri and Kaduna refineries.
NNPCL also leaned on Section 64(m) of the PIA, which designates it as Nigeria’s statutory supplier of last resort. According to officials familiar with the case, this role requires the company to maintain import planning, strategic storage capacity and nationwide distribution readiness to prevent shortages and safeguard supply continuity.
The national oil company warned that approving Dangote’s requests could restrict its ability to respond swiftly to fuel emergencies or scarcity situations. It further argued that NNPCL, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) are indispensable parties because they hold critical operational and regulatory data relating to crude allocation, import planning, refining, storage and nationwide distribution.
Industry stakeholders say the outcome of the case could reshape Nigeria’s fuel supply model, redefine competition in the downstream sector and influence the future balance between local refining and fuel imports in the post-subsidy era.