The $20bn refinery goes to war in court as petrol import approvals spark a major showdown with federal regulators
Dangote Petroleum Refinery has filed a fresh suit before the Federal High Court in Lagos against the Attorney General of the Federation, challenging fuel import licences recently granted to six petroleum marketers and the Nigerian National Petroleum Company (NNPC) by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The new legal action comes barely a year after the refinery quietly withdrew an earlier case over similar import approvals issued to NNPC and some fuel traders, leaving unresolved questions about competition and fuel supply in Africa’s largest petroleum market.
In the latest filing, Dangote is asking the court to nullify import permits issued or renewed by the NMDPRA, arguing the approvals violate an earlier court order directing all parties to maintain the status quo. The refinery insists the fresh licences — issued this month — threaten its operations and contravene the law, which only permits fuel importation where local supply is insufficient.
The approvals cover 720,000 metric tonnes of Premium Motor Spirit (PMS) distributed among six marketers: NIPCO (120,000MT), AA Rano (150,000MT), Matrix (150,000MT), Shafa (120,000MT), Pinnacle (120,000MT), and Bono (60,000MT).
Regulators and petroleum marketers have defended the imports, arguing they are necessary to guarantee adequate supply and prevent scarcity. The NMDPRA also claimed Dangote Refinery currently supplies more than 90 per cent of Nigeria’s daily petrol consumption.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) added its voice to the debate, calling on the Federal Government to restore petrol import licences to prevent a possible spike in inflation. PETROAN National President Billy Gillis-Harry backed the World Bank’s recent warning that restricted competition and supply limitations in the downstream sector were contributing to rising fuel prices, with PMS prices already exceeding import parity levels.
The World Bank also cautioned that continued supply rigidity, combined with rising international crude oil prices, could worsen inflationary pressure in Nigeria.
Sources: thesun.ng