A Federal High Court in Lagos has dismissed an objection raised by the Nigerian National Petroleum Company Limited (NNPC) in an ongoing lawsuit filed by Dangote Oil Refinery. The lawsuit seeks to halt the importation of gasoline, arguing that the newly commissioned refinery has sufficient capacity to meet Nigeria’s domestic fuel demand.
The ruling, delivered on Tuesday, marks a significant development in the legal battle between Nigeria’s largest oil company and Africa’s largest privately owned refinery. The case has drawn widespread attention due to its potential impact on the nation’s fuel supply chain, local refining capacity, and government policies on fuel importation.
Dangote Oil Refinery, which began production earlier this year, filed the lawsuit against NNPC, alleging that the government’s continued importation of refined petroleum products was undermining the refinery’s viability. The company argues that, with its 650,000 barrels per day refining capacity, Nigeria no longer needs to rely on gasoline imports, and that the government should prioritize purchasing locally refined products.
NNPC, however, filed an objection to the suit, contending that it retains the right to import fuel under existing contractual obligations and market stabilization strategies. The state-owned oil company claimed that a sudden halt to imports could disrupt supply and lead to nationwide fuel shortages.
Justice Ibrahim Liman ruled against NNPC’s preliminary objection, stating that the case presented by Dangote Refinery raises substantial legal and economic questions that warrant a full hearing. He emphasized that NNPC’s arguments were “premature at this stage,” and that the lawsuit should proceed to determine whether the continued importation of gasoline violates existing laws or the economic interests of the country.
The judge further noted that Dangote Refinery, as a major player in Nigeria’s energy sector, has the right to challenge policies that could potentially affect its operations and investment.
The court’s decision has sparked debates within Nigeria’s petroleum sector. Supporters of Dangote Refinery argue that reducing fuel imports will boost local refining capacity, create jobs, and strengthen the naira by cutting Nigeria’s reliance on foreign exchange for fuel purchases. Others, however, caution that an abrupt transition from imports to local refining could cause supply disruptions if Dangote Refinery encounters operational challenges.
Industry analysts suggest that the case could reshape Nigeria’s fuel import policies and redefine NNPC’s role in the downstream petroleum sector. “This lawsuit is not just about Dangote versus NNPC. It is about Nigeria’s long-term strategy for fuel security and economic self-sufficiency,” said energy economist Dr. Chinedu Okafor.
Following the ruling, Dangote Group released a statement expressing confidence in the legal process and reiterating its commitment to Nigeria’s economic development. “Our goal has always been to support the nation’s energy independence. We believe in fair competition and the need for policies that encourage local production over unnecessary imports,” the statement read.
On the other hand, NNPC has vowed to continue defending its position in court. An NNPC spokesperson stated that the company “remains committed to ensuring stable fuel supply for Nigerians and will comply with all legal directives as the case progresses.”
With NNPC’s objection dismissed, the lawsuit will proceed to a full trial, where the court will determine whether the continued importation of fuel violates economic fairness or government commitments to local refining. Legal experts anticipate that the case could set a precedent for future disputes between private investors and state-owned enterprises in Nigeria’s energy sector.
As the legal battle unfolds, TheLink News NG will provide continuous updates on its potential impact on fuel pricing, supply, and national energy policies.
