Dangote Refinery Sues Federal Government Over Alleged Crude Supply Sabotage

The Dangote Petroleum Refinery has taken the Federal Government to court, accusing the Nigerian National Petroleum Company (NNPC) of deliberately starving it of crude oil while letting cheaper foreign imports flood the market.

In an affidavit filed at the Federal High Court in Lagos, the refinery says it receives just five crude oil cargoes a month from the NNPC — far below the thirteen it needs to run at full capacity.

“The government, through the NNPC, has deliberately neglected to do so, in a bid to sabotage the applicant’s investment in the oil and gas industry in Nigeria,” the affidavit reads.

The shortfall has forced Dangote to buy crude from international traders at higher prices, squeezing its margins and threatening the viability of the entire operation.

Import Licence Battle

Beyond crude supply, the refinery is also fighting over import licences. Dangote says it already produces enough to meet national demand, yet the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) keeps issuing import permits to other companies.

The refinery named AA Rano Limited, Matrix Petroleum Services Limited and AYM Shafa Limited among companies benefiting from the licences. It’s asking the court to block the government from issuing or renewing any further import permits.

NNPC Fires Back

The NNPC has rejected every allegation. It denied sabotaging the refinery’s operations and said its regulatory agencies hadn’t frustrated Dangote’s business. The national oil company also noted that Dangote’s fuel prices are already high and fluctuate based on commercial decisions. It plans to challenge the suit on procedural grounds, arguing the refinery lacks legal standing to bring the case.

The court has yet to rule on the injunction request.

Sources: Pulse NG, Punch, Tribune Online