The Nigerian National Petroleum Company (NNPC) Limited has opposed the lawsuit filed by Dangote Petroleum Refinery challenging fuel import licences issued to marketers, warning that restricting imports could expose Nigeria to supply disruptions and monopoly control.
According to Reuters on Friday, NNPC argued before the
federal high court in Lagos that granting Dangote refinery’s request to void or
restrict import permits would threaten the country’s energy security and
destabilise fuel supply.
In the court documents, NNPC said the move could expose
Nigeria to “supply disruptions, price instability and risks to national energy
security”.
The legal dispute centres on import licences issued or
renewed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority
(NMDPRA) to fuel marketers and NNPC.
Dangote refinery, reacting to the move, filed a suit in
April against the attorney-general of the federation, arguing that the licences
undermine local refining and violate provisions of the Petroleum Industry Act
(PIA).
Marketers had also kicked against Dangote refinery’s suit,
saying it would destabilise the country’s downstream petroleum sector.
NNPC rejected Dangote refinery’s claim, insisting that the
law permits the issuance of import licences to firms with local refining
licences or proven records in international crude and petroleum products
trading.
The company also argued that the regulator retains
discretionary powers to manage imports under Nigeria’s backward integration
policy.
NNPC said there is no mandatory prohibition on fuel imports
except in situations where domestic supply is sufficient.
The national oil company further argued that Dangote
refinery failed to provide “credible, independent or verifiable evidence” that
it can meet Nigeria’s total fuel demand or guarantee uninterrupted nationwide
supply.
NNPC also denied allegations that it deliberately withheld
crude supply from the refinery or attempted to frustrate its operations.
According to the filing, crude allocation decisions are
based on “operational, commercial, security and logistical factors”.
Also, the NMDPRA has applied to join the suit, widening the
legal battle over fuel import policy and Dangote refinery’s growing market
position.
Fuel marketers have also opposed the suit, warning that
restricting imports could weaken competition and threaten supply stability.
The dispute comes amid plans by Dangote refinery to conduct
initial public offering (IPO) in September.
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