The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has defended its decision to issue petroleum import licenses to multiple companies, citing insufficient production from the Dangote Refinery to meet national demand.

The regulatory body's position comes in response to a legal challenge by Dangote Refinery and Petrochemicals FZE, which sought to invalidate import licenses granted to the Nigerian National Petroleum Company (NNPC) and several other oil companies. Dangote's lawsuit (FHC/ABJ/CS/1324/2024) alleged violations of the Petroleum Industry Act (PIA).

In a December 2024 counter-affidavit, NMDPRA senior regulatory officer Idris Musa emphasized several key points:

Production Capacity:

- Current Dangote Refinery output remains insufficient for national petroleum requirements

- The authority cannot rely solely on Dangote's unverified claims about diesel and jet fuel production capacity

- Multiple supply sources are necessary to ensure energy security

Market Competition:

- Allowing Dangote exclusive market rights would create a monopoly

- NMDPRA aims to prevent market dominance and ensure healthy competition

- The authority anticipates improved competition once NNPCL's four refineries and additional modular refineries become operational

Regulatory Compliance:

- The disputed 0.5% levy complies with PIA requirements

- Dangote's free zone status doesn't exempt it from local regulations

- The refinery maintains the right to sell products globally, not just within Nigeria

NMDPRA dismissed Dangote's allegations of conspiracy, stating the company failed to provide supporting evidence. The authority maintains that issuing additional import licenses is necessary to prevent product shortages and protect consumer interests.

The case continues, with NNPC requesting dismissal of Dangote's suit as of November 2024.​​​​​​​​​​​​​​​​