The Federal Government of Nigeria, alongside the Nigerian National Petroleum Company Limited (NNPC Ltd.) and other regulatory bodies, has firmly resolved to oppose a new lawsuit filed by Dangote Refinery, escalating tensions within the nation’s petroleum and energy sector.
To ensure a robust and unified response, the Office of the Attorney General of the Federation (AGF) has officially taken full charge of coordinating the government’s legal defense. Filed before the Federal High Court in Lagos under suit number FHC/L/CS/857/2026, this legal battle has reignited intense national debates surrounding fuel importation, domestic refining capacity, and crude oil supply obligations.
At the heart of the dispute is the request by Dangote Refinery, a massive 650,000-barrel-per-day facility led by billionaire Aliko Dangote, for the court to halt the issuance and renewal of import licenses for premium motor spirit, automotive gas oil, and jet A1. Management of the refinery argues that the multi-billion-dollar facility now possesses the full capacity to meet Nigeria’s total domestic fuel demand, making continued petroleum imports legally and economically unjustifiable.
Furthermore, Dangote Refinery alleges that key government agencies, including NNPC Ltd., have consistently failed to guarantee the adequate and sustainable supply of crude oil required to keep its operations running optimally.
However, official documents submitted to the Attorney General show that the Federal Government is prepared to vigorously challenge Dangote’s claims in court. Following a court order directing all parties to maintain the status quo, the Attorney General requested formal position papers from NNPC Ltd. and other regulatory agencies to construct a watertight defense.
In its detailed submission to the AGF, NNPC Ltd. rejected Dangote’s arguments entirely, warning that granting the requested import ban would severely destabilize national fuel security, disrupt emergency fuel supply arrangements, and fatally weaken the strategic petroleum distribution system established under the Petroleum Industry Act (PIA).
NNPC Ltd. further countered what it views as an attempt to create a market monopoly, arguing that eliminating import competition would expose Nigerian consumers to supply shortages and extreme price volatility. The national oil company also pointed out that Dangote Refinery has yet to provide reliable, independent verification proving it can consistently satisfy the nation’s entire fuel consumption without disruption.
Earlier, the Federal High Court had ordered all parties to maintain the status quo pending a hearing, a directive formally served to NNPC on May 4, which prompted the AGF to request the company’s position on May 7 ahead of the scheduled May 13 court appearance.
In its defense filings, NNPC Ltd. noted that the current lawsuit closely mirrors a previous action filed by Dangote in 2024 under suit number FHC/ABJ/CS/1324/2024, which was ultimately withdrawn following government intervention and legal pushback. While Dangote is now leveraging sections 317(8) and 317(9) of the Petroleum Industry Act to demand an import monopoly, government legal experts argue these provisions cannot be enforced in the manner suggested without explicit executive directives.
