The Nigerian National Petroleum Company Limited (NNPC Ltd.) and the Office of the Attorney General of the Federation (AGF) have moved to vigorously challenge a fresh lawsuit by Dangote Refinery seeking to halt the issuance and renewal of petroleum import licences in Nigeria.
The suit, marked FHC/L/ CS/857/2026 before the Federal High Court in Lagos, is the latest escalation in the growing legal and commercial battle over Nigeria’s downstream petroleum market and crude oil supply obligations.
Dangote Refinery is asking the court to restrain the Federal Government and regulatory agencies from issuing or renewing import licences for Premium Motor Spirit, Automotive Gas Oil and Jet A1, arguing that its refining capacity is now sufficient to meet national demand.
The refinery also accused the Federal Government and agencies, including NNPC Ltd., of failing to ensure adequate crude oil supply to support its operations.
However, documents and submissions now before the AGF indicate that NNPC Ltd. is strongly opposing the suit, insisting that the reliefs sought could undermine national fuel security and disrupt statutory supply obligations imposed on the national oil company under the Petroleum Industry Act (PIA).
The matter took a dramatic turn after the Federal High Court on April 29 ordered all parties, including NNPC Ltd., to maintain the status quo pending further proceedings. NNPC was formally served with the enrolled order on May 4, while the AGF subsequently requested the company’s official position on May 7. NNPC responded the following day ahead of the scheduled hearing fixed for May 13.
NNPC, in its response to the AGF, argued that the case is substantially identical to an earlier suit filed by Dangote Refinery in 2024, marked FHC/ABJ/CS/1324/2024, which was eventually discontinued after what insiders described as a vigorous legal challenge mounted by the defendants. According to NNPC’s position, the current suit merely seeks to revive the same claims under Sections 317(8) and 317(9) of the Petroleum Industry Act.
The national oil company is therefore seeking to be joined as a necessary party in the matter while simultaneously challenging the competence of the suit. NNPC further argued that Section 317(9) of the PIA can only operate pursuant to a formally activated Backward Integration Policy under Section 317(8), noting that no gazette, directive or official policy instrument has been issued to activate such provisions.
The company also maintained that the law, in any case, applies to NNPC because of its long-standing trading operations and ownership interests in the Port Harcourt, Warri and Kaduna refineries.
In its submission to the AGF, NNPC stressed that under Section 64(m) of the PIA, it remains the statutory supplier of last resort, a responsibility that requires continuous import planning, strategic fuel storage and nationwide distribution readiness to prevent shortages and safeguard energy security.
Officials familiar with the matter said NNPC warned that granting Dangote’s requests could directly impair its ability to respond swiftly to supply emergencies or potential scarcity situations.
The company also argued that NNPC, the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Nigerian Upstream Petroleum Regulatory Commission are all proper and necessary parties because they possess critical operational and regulatory information relating to crude allocation, import planning, refinery operations, storage and nationwide product distribution.
Industry observers say the outcome of the case could significantly reshape Nigeria’s petroleum supply framework, competition structure and fuel import regime in the post subsidy era.
