FUEL SUPPLY SHOWDOWN: AGF, NNPC move to defend energy security

By Nnamdi Ojiego

The Nigerian National Petroleum Company Limited (NNPC Ltd.) and the Office of the Attorney General of the Federation (AGF) have launched a vigorous legal challenge against a new lawsuit filed by Dangote Refinery seeking to halt the issuance and renewal of petroleum product import licences across the country, arguing that the move poses a direct threat to national energy security.

The suit, marked FHC/L/CS/857/2026 and pending before the Federal High Court in Lagos, represents the latest and most dramatic escalation in the ongoing legal and commercial battle over Nigeria’s downstream petroleum market. 

Dangote Refinery is asking the court to restrain the Federal Government and all regulatory agencies from issuing or renewing import licences for Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and Jet A1, contending that its own refining capacity is now sufficient to satisfy the entirety of national demand.

In addition to the import ban request, the refinery has also formally accused the Federal Government and its agencies, including NNPC Ltd., of failing to ensure adequate crude oil supply to support its operations. 

However, documents and submissions now before the AGF reveal that NNPC Ltd. is strongly opposing the suit. 

The national oil company insists that the reliefs sought by Dangote could fundamentally undermine Nigeria’s fuel security framework and disrupt statutory supply obligations imposed on the company under the Petroleum Industry Act (PIA).

The legal confrontation took a dramatic procedural turn after the Federal High Court, on April 29, ordered all parties, including NNPC Ltd., to maintain the status quo pending further proceedings. Court records indicate that NNPC was formally served with the enrolled order on May 4, following which the AGF requested the company’s official position on May 7. 

NNPC responded swiftly the following day, ahead of the scheduled hearing fixed for May 13. Sources familiar with the deliberations told this newspaper that NNPC’s response to the AGF argues that the current case is substantially identical to an earlier suit filed by Dangote Refinery in 2024, marked FHC/ABJ/CS/1324/2024. That previous case, insiders said, was eventually discontinued after what was described as a vigorous legal challenge mounted by the defendants. NNPC contends that the 2026 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. In a detailed submission to the AGF, NNPC argued that Section 317(9) of the PIA can only operate pursuant to a formally activated Backward Integration Policy under Section 317(8).

 Critically, the company noted that no gazette, directive, or official policy instrument has been issued to activate such provisions. NNPC further maintained that the law, in any case, applies to its own operations because of its long-standing trading activities and ownership interests in the Port Harcourt, Warri, and Kaduna refineries.

Perhaps most significantly, NNPC stressed in its submission that under Section 64(m) of the PIA, it remains the statutory supplier of last resort. Officials familiar with the matter explained that this responsibility requires NNPC to engage in continuous import planning, strategic fuel storage management, and nationwide distribution readiness in order to prevent shortages and safeguard energy security. 

The company warned the AGF 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 (NMDPRA), and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) are all proper and necessary parties to the suit because they possess critical operational and regulatory information relating to crude allocation, import planning, refinery operations, storage logistics, 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. 

As of press time, the court has fixed May 13 for further proceedings, with all parties ordered to maintain the status quo.

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