Nigeria-based Dangote Petroleum Refinery, Africa’s largest petroleum refinery, has filed a fresh lawsuit against the Nigerian government and the country’s downstream regulator in a renewed effort to challenge fuel import licences issued to petroleum marketers and the state-owned Nigerian National Petroleum Company.
The refinery alleges that these licences violate a prior court order and undermine its operations, arguing that domestic refining capacity now exists.
Despite expectations that Dangote Petroleum Refinery would reduce Nigeria’s reliance on fuel imports, the country continues to import fuel due to the refinery’s gradual production ramp-up.
Dangote Refinery is asking the Federal High Court in Lagos to set aside import permits issued or renewed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), arguing that they breach an earlier order to maintain the status quo.
Regulators and marketers have previously argued that imports are needed to ensure adequate supply and prevent shortages.
Recently, the NMDPRA issued licences to six marketers for the importation of 720,000 metric tonnes of premium motor spirit (petrol).
The marketers are NIPCO, AA Rano, Matrix, Shafa, Pinnacle, and Bono. This development comes amid claims by the NMDPRA that Dangote Petroleum Refinery now supplies over 90 per cent of Nigeria’s daily petrol consumption.
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Findings showed that NIPCO is expected to import 120,000 metric tonnes; AA Rano, 150,000 MT; Matrix, 150,000 MT; Shafa, 120,000 MT; Pinnacle, 120,000 MT; and Bono, 60,000 MT, amounting to a total of 720,000 MT.
Dangote has argued that the licences undermine its operations and contravene the law, which it says allows imports only when domestic supply falls short. The refinery defended its capacity, stating that it is now operating at 661,000 barrels per day.
“The refinery has been tested. We have now processed crude at 661,000 barrels a day. So we have demonstrated that capability,” said an official of Dangote Refinery recently.
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