The Office of the Attorney General of the Federation (AGF) is leading a fortified team of legal experts to challenge the fresh lawsuit by Dangote Refinery.
The suit is seeking to halt the issuance and renewal of petroleum import licences in Nigeria.
The Nigerian National Petroleum Company Limited (NNPCL) and other regulatory agencies are standing with the federal government on the legal tussle, which experts believe, seeks to define the future of the nation’s energy security.
Marked FHC/L/CS/857/2026 before the Federal High Court in Lagos, the suit has deepened the rising legal and commercial dispute around Nigeria’s downstream petroleum sector, fuel import regime and crude supply obligations.
On its side, Dangote Refinery is praying 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 oil giant also accused government agencies, including NNPC Ltd., of failing to guarantee adequate crude oil supply to support its operations.
But from the documents before the OAGF reveal that the AGF is leading a legal team upon being briefed on the positions of the NNPCL and other affected agencies, after the court ordered all parties to maintain the status quo pending further proceedings.
And making its position known to the OAGF, the NNPCL 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).
On April 29, the court had ordered all parties to maintain the status quo.
NNPCL 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.
Responding a day after, the NNPCL contended that the current action is substantially the same with 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.
In its submission to the OAGF, the NNPCL maintained that the new suit is essentially an attempt to revive similar claims under Sections 317(8) and 317(9) of the PIA.
The national oil company seeks 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 NNPCL 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.
Some sources conversant with the matter quoted the NNPCL as cautioning the AGF against granting Dangote Refinery’s requests, as that could significantly impair the country’s ability to respond swiftly to fuel supply emergencies or scarcity situations.
The company also argued that NNPCL, 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.
The outcome of the case, according to top industry stakeholders, could have far-reaching implications for Nigeria’s petroleum supply architecture, competition dynamics and post-subsidy fuel import framework.
