AGF Leads Defence as NNPC Battles Dangote Over Fuel Import Ban Suit

The Office of the Attorney General of the Federation is leading a coordinated legal defence against a lawsuit filed by Dangote Refinery seeking to halt the issuance and renewal of petroleum import licences in Nigeria.

The case, marked FHC/L/CS/857/2026 before the Federal High Court in Lagos, has escalated tensions within Nigeria’s downstream petroleum sector as stakeholders battle over fuel importation rights, crude oil allocation and national energy security.

Dangote Refinery is asking the court to restrain the Federal Government and regulatory agencies from issuing or renewing licences for the importation of Premium Motor Spirit, Automotive Gas Oil and Jet A1 fuel products.

The refinery argued that its production capacity is sufficient to meet Nigeria’s domestic demand and further accused government agencies, including Nigerian National Petroleum Company Limited, of failing to guarantee adequate crude oil supply to support refinery operations.

However, documents before the AGF’s office indicate that the Federal Government, backed by NNPC Ltd. and other agencies, is strongly opposing the suit over fears that granting the requests could weaken Nigeria’s fuel supply architecture.

The Federal High Court had earlier ordered all parties to maintain the status quo pending the determination of the matter.

NNPC Ltd., in its submission to the AGF, argued that the suit substantially mirrors an earlier legal action filed by Dangote Refinery in 2024, which was later withdrawn after what insiders described as a strong legal challenge mounted by the defendants.

According to the national oil company, the latest suit seeks to revive similar claims under Sections 317(8) and 317(9) of the Petroleum Industry Act.

NNPC further maintained that the cited provisions cannot take effect without the formal activation of a Backward Integration Policy through an official gazette or policy instrument.

The company also argued that the law cannot apply to NNPC Ltd. because of its operational interests and trading activities linked to the Port Harcourt, Warri and Kaduna refineries.

Backing the Federal Government’s position, NNPC stressed that under Section 64(m) of the Petroleum Industry Act, it remains the statutory supplier of last resort, a responsibility that requires continuous fuel import planning and strategic reserve management to prevent shortages across the country.

Officials familiar with the matter disclosed that NNPC warned the AGF that restricting fuel import licences could significantly reduce Nigeria’s ability to respond to emergencies, supply disruptions and nationwide scarcity.

Industry analysts believe the outcome of the case could shape the future of Nigeria’s fuel supply system, competition framework and post-subsidy petroleum market reforms.