Connect with us

Business

NNPC accuses Dangote refinery of seeking fuel monopoly in court filing

info

Published

on

WhatsApp Image 2023 11 14 at 7.08.40 AM e1761856902627.jpeg

The Nigerian National Petroleum Company Limited (NNPC Ltd) has accused Dangote Petroleum Refinery of attempting to monopolise Nigeria’s fuel market through a lawsuit challenging import licences granted to rival marketers.

In court documents, the state oil company argued that granting Dangote’s request to void or restrict fuel import permits would undermine competition and expose Nigeria to supply disruptions, price instability and threats to national energy security.

The position was contained in a proposed defence filed before the Federal High Court in Lagos in response to a suit instituted by Dangote Petroleum Refinery against the Attorney-General of the Federation.

Reuters reported that the legal dispute has resulted in the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) applying to join the case.

The move comes less than a month after Dangote Petroleum Refinery filed a fresh lawsuit against Nigeria’s Attorney-General, seeking to overturn fuel import licences granted to oil marketers and the NNPC.

PT WHATSAPP CHANNEL

The lawsuit exchange has also broadened the battle over Nigeria’s fuel import policy and the market influence of Dangote’s 650,000 barrels-per-day refinery.

The dispute comes ahead of Dangote Refinery’s planned initial public offering (IPO) in September, raising fresh concerns over market regulation, competition, and the refinery’s future revenue outlook.

In its lawsuit against the government, the refinery argued that licences issued to rival marketers undermine local refining efforts and violate provisions of the Petroleum Industry Act (PIA), which it said was designed to encourage domestic refining capacity.

However, NNPC has rejected the claim, arguing that the law permits the issuance of import licences to companies with local refining licences or established records in international crude oil and petroleum products trading.

The state oil company further argued that regulators retain the discretion to manage fuel imports under Nigeria’s backward integration policy and that there is no outright ban on fuel imports except where local production sufficiently meets domestic demand.

According to the court documents, NNPC also contended that Dangote refinery had failed to provide “credible, independent or verifiable evidence” that it could consistently meet Nigeria’s total fuel demand and guarantee uninterrupted nationwide supply.

Dangote refinery declined to comment on the matter, citing the ongoing court proceedings.

NNPC also denied allegations that it deliberately frustrated Dangote refinery’s operations or withheld crude oil supplies from the facility.

The company said crude oil allocations were determined by operational, commercial, security and logistical considerations.

Fuel marketers have equally opposed Dangote’s suit, warning that restricting import licences could weaken market competition and threaten fuel supply stability across the country.

The court is expected to hear the matter in the coming weeks.

Background

Since commencing operations in 2024, Dangote Refinery has repeatedly pushed for local marketers to source petroleum products primarily from domestic refineries rather than continue importing refined fuel.

However, the former NMDPRA leadership under Farouk Ahmed consistently resisted any move perceived as creating a monopoly, insisting that allowing a single refinery to dominate supply would undermine competition and threaten Nigeria’s long-term energy security.

That disagreement led to a feud between Aliko Dangote and Mr Ahmed.

Mr Dangote later accused Mr Ahmed of corruption and alleged that the regulator was colluding with international traders and fuel importers to frustrate local refining by continuing to issue import licences.

He also alleged that Mr Ahmed was living beyond his legitimate means, claiming that four of his children were enrolled in expensive secondary schools in Switzerland, raising concerns over possible abuse of office and regulatory integrity.

Mr Ahmed later resigned following the controversy.

Previous lawsuit

In 2024, Dangote Refinery, in suit number FHC/ABJ/CS/1324/2024, asked the court to award N100 billion in damages against the NMDPRA for issuing import licences to some marketers and permitting the importation of petroleum products.

The marketers listed in the suit were NNPC Ltd, Matrix Petroleum Services Limited, AYM Shafa Limited, A.A. Rano Limited, T. Time Petroleum Limited, and 2015 Petroleum Limited.

In the suit dated 6 September 2024, the plaintiff’s lawyer, Ogwu Onoja, asked the court to declare that the NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licences for the importation of petroleum products.

Dangote Refinery argued that such licences should only be issued when a petroleum product shortfall exists.

The refinery also asked the court to declare that the NMDPRA failed in its statutory responsibility under the PIA by failing to encourage local refineries, such as Dangote Refinery.

However, in a counter-affidavit marked FHC/ABJ/CS/1324/2024 dated 5 November 2024 and filed by Ahmed Raji (SAN), the marketers asked the court to dismiss Dangote Refinery’s claims, insisting that competitive practices are essential to Nigeria’s economic health and the viability of the oil sector.

They argued that they were fully qualified to receive import licences from the NMDPRA under Section 317(9) of the PIA.

The defendants further alleged that the plaintiff was attempting to monopolise Nigeria’s petroleum industry by seeking sole control of supply, distribution, and pricing.

In July 2025, Dangote Refinery quietly discontinued the lawsuit challenging the import approvals without publicly stating its reasons, leaving unresolved concerns over market competition and supply dynamics in one of Africa’s largest fuel markets.

READ ALSO: NNPC posts N276 billion profit in March

For decades, Nigeria has relied heavily on imported petrol because its state-owned refineries have performed poorly.

The $20 billion Dangote Refinery, owned by billionaire businessman Aliko Dangote, was expected to end that dependence by supplying refined petroleum products locally.

With an installed capacity of 650,000 barrels per day, the facility is Africa’s largest single-train refinery and is projected to reduce pressure on foreign exchange used for fuel imports significantly.

However, petrol imports have persisted as the refinery continues to ramp up production and distribution capacity, while marketers maintain that domestic output alone has yet to meet national demand fully.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

First HoldCo appoints new non-executive director

info

Published

on

Untitled design 43.jpg

First HoldCo Plc has appointed Gwen Mwaba as a non-executive director of the financial institution, effective 15 October, following an approval by the Central Bank of Nigeria (CBN).

The lender disclosed the appointment in a regulatory filing signed by Abiola Baruwa, the group company secretary, on Thursday.

First HoldCo said the appointment was made in accordance with the Nigerian Exchange Limited (NGX) Rulebook.

According to the lender, Ms Mwaba brings significant expertise in corporate governance and board oversight, credit risk and portfolio management, banking strategy, capital deployment, structured trade and commodity finance, development finance, environmental, social and governance (ESG) issues, and emerging-market risk.

Profile

Ms Mwaba brings nearly three decades of experience in global banking and development finance institutions, with particular expertise in credit risk oversight, portfolio governance, corporate and sovereign lending, structured trade and commodity finance, development finance and emerging markets.

Until recently, she served as managing director of Trade Finance and Correspondent Banking at the African Export-Import Bank (Afreximbank), based in Cairo, Egypt.

PT WHATSAPP CHANNEL
Dangote Refinery AD

In that role, Ms Mwaba had executive leadership responsibility for trade finance and structured credit activities across Africa and the Caribbean.

The newly appointed director also oversaw a $19.5 billion portfolio of sovereign, financial institution and corporate exposures.

She contributed to the bank’s Pre-Credit and Credit Committees, providing senior credit judgement on major lending transactions. She also oversaw portfolio strategy, sector exposures and country risk limits.

Before that, Ms Mwaba served as regional head for Anglophone West Africa at Afreximbank, overseeing regional strategy and credit origination across Nigeria, Ghana, Sierra Leone, Liberia, The Gambia and Cape Verde.

Earlier, she was executive vice president of Structured Trade and Commodity Finance at Standard Bank Plc, London, where she was responsible for complex commodity finance, export credit agency-backed facilities and pre-export financing transactions across Africa.

Her earlier banking career included senior roles at Stanbic Bank Zambia and Standard Bank South Africa, including head of Vehicle and Asset Finance and head of Corporate Banking.

READ ALSO: CBN restates single-digit inflation target as FG woos investors with tax credits

Ms Mwaba’s wider industry experience includes membership of the editorial board of Trade Treasury & Payments.

Until recently, her also served on the Multilateral Institutions Board Advisory Panel of the International Trade and Forfaiting Association (ITFA) and the World Trade Organization-led Expert Group on Trade Finance.

Ms Mwaba holds a Master of Business Administration (MBA) from Heriot-Watt University, United Kingdom, and a Bachelor of Science (Honours) degree in Applied Accounting from Oxford Brookes University, United Kingdom.

She is a Fellow of the Association of Chartered Certified Accountants (FCCA) and holds a professional qualification from the Chartered Institute of Transport.


Discover more from Premium Times Nigeria

Subscribe to get the latest posts sent to your email.

Continue Reading

Business

TUDUN WADA, OTHER PLATEAU COMMUNITIES TO GET ELECTRICITY BOOST!

info

Published

on

IMG 5795.jpeg

70-TRANSFORMER PROJECT REACHES 98% COMPLETION AS PLATEAU EXPANDS POWER ACCESS

There could be brighter days ahead for Tudun Wada and several other communities across Plateau State, as the state government says its ongoing 70-transformer electricity intervention project has reached 98% completion. ⚡️

The intervention is aimed at improving electricity supply and expanding access to power in communities that have experienced inadequate or unreliable electricity supply.

Among the communities listed to benefit from the intervention are Tudun Wada, Naraguta, Rikkos, Nasarawa, Agingi, Longwa, Zawan and Du, alongside other communities across the state.

💡 TUDUN WADA AMONG BENEFICIARIES

For residents of Tudun Wada, the development could mean improved power capacity for homes, businesses, shops, schools and other community activities.

Reliable electricity remains an important part of everyday life, particularly for small businesses and entrepreneurs who depend on power to operate equipment, preserve goods and provide services.

From barbershops and salons to restaurants, cold-drink businesses, tailoring shops, phone charging centres, printing businesses and other small enterprises, improved electricity supply could help reduce dependence on alternative sources of power.

⚡️ OLD TRANSFORMERS TO BE REFURBISHED

According to the Commissioner for Water Resources and Energy, Hon. Bashir Lawandi Datti, the intervention is not only about installing new transformers.

Some existing and old transformers are also being refurbished and redeployed to areas where they are needed.

This approach is expected to help maximise available infrastructure while extending electricity support to more communities.

🏘️ GOVERNMENT TO PRIORITISE AREAS WITH GREATER NEED

Governor Caleb Manasseh Mutfwang has also approved the relocation of some transformer units to communities considered to have greater electricity needs.

The move is expected to ensure that available power infrastructure is directed to areas where it can have the greatest impact.

With the project now reportedly at 98% completion, attention will be on the final stages of implementation and when the affected communities will begin to fully experience the benefits.

MORE POWER, MORE OPPORTUNITIES

Electricity is more than just light in our homes.

For local businesses, it can mean longer operating hours, reduced operating costs and increased productivity.

For students, it can provide better conditions for studying at night.

For households, it can bring greater convenience.

And for communities like Tudun Wada, improved electricity supply could support economic activities and contribute to a better quality of life.

💡 More transformers.
⚡️ More communities.
🏘️ More access to electricity.
📈 More opportunities for Plateau residents.

But the big question remains:

👇 TUDUN WADA RESIDENTS, HOW HAS ELECTRICITY SUPPLY BEEN IN YOUR AREA RECENTLY?

Are you already noticing an improvement, or are you still waiting for the intervention to take effect?

Tell us your area and your experience in the comments. 👇

#PlateauState #TudunWada #Jos #Electricity #PowerSupply #PlateauNews #JosNews #Plateau #CommunityDevelopment #MorePowerMoreOpportunities

Continue Reading

Trending