Fuel import battle: AGF leads federal defence, NNPC warns against threat to energy security

The Office of the Attorney General of the Federation (AGF) is leading a coordinated legal defence against the fresh lawsuit filed by Dangote Refinery seeking to halt the issuance and renewal of petroleum import licences in Nigeria, with the Nigerian National Petroleum Company Limited (NNPC Ltd.) and other regulatory agencies backing the Federal Government’s position over concerns about national energy security.

The suit, marked FHC/L/CS/857/2026 before the Federal High Court in Lagos, has intensified the growing legal and commercial dispute surrounding Nigeria’s downstream petroleum sector, fuel import regime and crude supply obligations.

Dangote Refinery is asking the court to restrain the Federal Government and relevant agencies from issuing or renewing import licences for Premium Motor Spirit, Automotive Gas Oil and Jet A1, insisting that its refining capacity is sufficient to meet Nigeria’s domestic fuel needs.

The refinery also accused government agencies, including NNPC Ltd., of failing to guarantee adequate crude oil supply to support its operations.

However, documents now before the Office of the Attorney General of the Federation show that the AGF is spearheading the defence of the suit, after formally requesting the positions of NNPC Ltd. and other affected agencies following the Federal High Court’s order directing parties to maintain the status quo pending further proceedings.

NNPC Ltd., in its response to the AGF, strongly opposed the suit, warning that the reliefs being sought by Dangote Refinery could undermine national fuel security, disrupt emergency supply obligations and weaken Nigeria’s strategic fuel distribution framework under the Petroleum Industry Act (PIA).

The Federal High Court had on April 29 ordered all parties to maintain the status quo. NNPC Ltd. was formally served with the enrolled order on May 4, while the AGF subsequently sought the company’s official position on May 7 ahead of the hearing scheduled for May 13.

NNPC responded the following day, arguing that the current action substantially mirrors an earlier suit filed by Dangote Refinery in 2024, marked FHC/ABJ/CS/1324/2024, which was later discontinued after what insiders described as a robust legal challenge mounted by the defendants.

According to the submission made to the AGF, NNPC maintained that the new suit is essentially an attempt to revive similar claims under Sections 317(8) and 317(9) of the Petroleum Industry Act.

The national oil company is now seeking to be joined as a necessary party in the matter while also challenging the competence of the suit.

NNPC further argued that Section 317(9) of the PIA can only take effect through 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 provisions cited by Dangote cannot apply to NNPC Ltd. because of its existing trading operations and ownership interests in the Port Harcourt, Warri and Kaduna refineries.

In its submission supporting the AGF’s defence, NNPC stressed that under Section 64(m) of the PIA, it remains the statutory supplier of last resort, a responsibility requiring continuous import planning, strategic reserves and nationwide distribution readiness to prevent shortages and protect Nigeria’s energy stability.

Officials familiar with the matter disclosed that NNPC warned the AGF that granting Dangote Refinery’s requests could significantly impair the country’s ability to respond swiftly to fuel supply emergencies or scarcity situations.

The company also argued that NNPC Ltd., the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Nigerian Upstream Petroleum Regulatory Commission are all necessary parties in the matter because they possess critical operational and regulatory information relating to crude allocation, import planning, refinery operations, storage capacity and nationwide fuel distribution.

Industry analysts believe the outcome of the case could have far-reaching implications for Nigeria’s petroleum supply architecture, competition dynamics and post-subsidy fuel import framework.