In Fuel Import Licence Dispute, NNPC Accuses Dangote Refinery of Seeking Monopoly
*Warns court action could destabilise supply, undermine energy security
Wale Igbintade
The Nigerian National Petroleum Company Limited (NNPC), in a statement of defence before a Federal High Court in Lagos, has accused the Dangote Petroleum Refinery of seeking to undermine competition in the downstream petroleum sector through its legal challenge to fuel import licences issued to rival marketers.The state oil company, NNPC Limited, argued that granting the reliefs sought by Dangote Petroleum Refinery would expose Nigeria to fuel supply disruptions, price instability, and risks to national energy security.NNPC maintained that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) acted within its statutory powers in issuing import licences.It said the law permits licences for companies with local refining capacity or a proven record in petroleum trading, and that regulators retain discretion under Nigeria’s backward integration policy.The company further argued that there was no legal requirement mandating a ban on imports except in cases of verified domestic shortfall.It rejected Dangote Refinery’s interpretation of the Petroleum Industry Act, insisting that fuel imports remain a lawful mechanism for stabilising supply and pricing in the domestic market.The dispute stems from a suit filed by Dangote Petroleum Refinery challenging the issuance and renewal of import licences granted to petroleum marketers and the NNPC.The refinery is seeking an interim injunction restraining the Attorney-General of the Federation and relevant agencies from issuing or renewing licences for Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and Jet A1.Dangote argued that continued issuance of import licences undermines local refining and violates Section 317(9) of the Petroleum Industry Act, which it interprets as restricting imports to situations where there is a proven supply shortfall.
