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NNPC Questions Dangote Refinery’s Capacity To Solely Meet Nigeria’s Fuel Demand

...As NNPC, Marketers Battle Dangote Over ‘Fuel Monopoly’ Suit

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The Nigerian National Petroleum Company Limited has accused the Dangote Petroleum Refinery of attempting to monopolise Nigeria’s fuel market through a court action seeking to restrict fuel import licences issued to rival marketers.

According to court documents filed before the Federal High Court in Lagos, NNPC argued that granting Dangote’s request could expose Nigeria to fuel supply disruptions, price instability and threats to national energy security.

Per Second News reports that the Dangote refinery had sued the Attorney General of the Federation and the Nigerian Midstream and Downstream Petroleum Regulatory Authority over the issuance and renewal of import licences to marketers and NNPC.

Dangote maintained that the licences undermine local refining and violate provisions of the Petroleum Industry Act.

However, NNPC countered that the law permits fuel importation by qualified companies and gives regulators the discretion to manage imports under the nation’s backward integration policy.

The state oil firm also told the court that Dangote refinery had failed to provide credible evidence that it could independently meet Nigeria’s fuel demand nationwide without disruption.

NNPC further denied allegations that it deliberately frustrated Dangote refinery’s operations or withheld crude oil supplies.
Fuel marketers have also opposed the suit, warning that restricting imports could threaten competition and fuel supply stability.
The case is expected to be heard in the coming weeks.

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See also  Dangote’s $2bn 900,000 metric tonnes per annum capacity petrochemical plant in Lagos to produce 77 grades of Polypropylene -- Official

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