NNPC Tells Court Dangote Cannot Yet Meet Nigeria’s Fuel Demand Alone

The Nigerian National Petroleum Company, NNPC, has told a Federal High Court in Lagos that Dangote Petroleum Refinery cannot yet prove it can meet Nigeria’s full fuel demand on its own, as the legal fight over import licences moves deeper into court.

Leadership, citing court filings seen by Reuters, and Arise News both reported that NNPC accused Dangote of trying to use the case to squeeze out rival importers and gain too much control over the downstream market.

The dispute is one of the biggest downstream-market fights since the Dangote refinery began shaping fuel supply conversations in Nigeria. At stake is not just who imports fuel, but how quickly regulators should reduce Nigeria’s dependence on imported products.

Import licences are at the centre of the dispute

Dangote filed the suit in April against the Attorney-General of the Federation and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, arguing that continued issuance or renewal of fuel import licences undermines local refining and runs against the Petroleum Industry Act.

The refinery is seeking to stop fresh licences for petrol, diesel and jet fuel imports, insisting imports should only continue where there is a verified domestic supply shortfall.

That argument will appeal to people who want Nigeria to protect domestic refining after years of relying on imported fuel. But NNPC’s position is that protection cannot come at the cost of supply security, especially in a market where any disruption quickly becomes a national problem.

NNPC warns of shortages and price instability

In its defence, NNPC said Dangote has not produced “credible, independent or verifiable evidence” that it can satisfy the country’s total petrol demand or guarantee uninterrupted nationwide supply. It also argued that the law does not impose a blanket import ban and still allows regulators to use licences to stabilise the market.

NNPC’s point is straightforward: if the court blocks imports too early and local output slips, Nigerians will feel it at the pump almost immediately. Dangote, on the other hand, is betting that shielding local refining now is the only way to stop Nigeria from staying addicted to imported fuel.

The court battle goes beyond one company. It will test how Nigeria balances industrial policy with consumer protection, competition, pricing and fuel availability. A ruling that favours Dangote too broadly could shrink competition. A ruling that leaves import licences wide open could weaken the case for local refining investment.

For motorists and businesses, the practical question is simpler: will this fight make fuel supply more stable, or will it create another round of uncertainty in an already sensitive market?

Sources: Leadership, Arise News