The Nigerian National Petroleum Company Limited (NNPC Ltd) has told the Federal High Court in Lagos that petrol produced by the Dangote Petroleum Refinery and Petrochemicals FZE is being sold at relatively high and unstable prices, arguing that restricting fuel imports could hand the refinery excessive control over Nigeria’s downstream petroleum market.
NNPC made the position in a counter-affidavit filed in response to a suit brought by the Dangote refinery in Case No. FHC/L/CS/857/2026 at the Federal High Court, Lagos Division.
In the filing, the state oil company urged the court to dismiss the suit, describing it as incompetent, premature, and an abuse of judicial process. It also argued that the refinery lacked legal standing and had not disclosed a valid cause of action.
The dispute stems from the refinery’s challenge to import licences issued to marketers and the NNPC by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). Dangote refinery is asking the court to invalidate approvals that allow fuel imports, insisting they undermine domestic refining efforts and existing regulatory provisions.
Marketers under the Petroleum Products Retail Outlet Owners Association of Nigeria also backed NNPC’s position, arguing that open competition is necessary to prevent monopolistic pricing and ensure stable fuel costs across the country.
NNPC maintained that the refinery had previously taken similar legal action in Abuja before withdrawing it and re-filing in Lagos, a move it described as forum shopping.
The company further argued that there is no credible evidence proving that the Dangote refinery can fully meet Nigeria’s daily fuel demand independently.
It stressed that national supply security depends not only on refining capacity but also on logistics, storage, distribution networks, and reserve management.
According to NNPC, relying on a single domestic supplier would expose the country to serious risks, including shortages and supply disruptions in the event of operational shutdowns or production interruptions at the refinery.
It also warned that limiting importation channels could destabilise the market, leading to price volatility, distribution challenges, and broader energy insecurity.
NNPC maintained that regulators acted within their legal powers in issuing import licences, stating that the Petroleum Industry Act allows discretionary use of backward integration policies rather than a total ban on imports.
The company added that restricting imports as requested by the refinery could effectively eliminate competition in the sector and create a monopoly, which it said would harm consumers and weaken market stability.
