KEY POINTS
- Dangote Refinery accuses the Federal Government, NNPC, and regulators of sabotaging crude supply and undermining its operations.
- The company claims it receives insufficient crude allocations and faces unfair competition from continued fuel import licensing.
- NNPC denies the allegations, challenges the lawsuit’s validity, and insists no sabotage or regulatory breach has occurred.
The Dangote Petroleum Refinery and Petrochemicals FZE has accused the Federal Government and its agencies of deliberately frustrating its operations in Nigeria’s downstream petroleum sector, describing the situation as a calculated attempt to undermine its massive investment.
The allegation was contained in an affidavit filed before the Federal High Court in Lagos, where the company is seeking an interim injunction to stop the issuance and renewal of petroleum import licences.
Dangote Refinery argued that its business model depends heavily on a stable crude oil supply arrangement with the Nigerian National Petroleum Company Limited, NNPC, which it described as central to its refining operations.
According to the company, crude oil is purchased from the Federal Government through NNPC, refined locally, and sold within Nigeria to improve domestic fuel availability and reduce import dependence.
However, it alleged that the government has failed in its responsibility to ensure adequate crude supply to local refineries, insisting the shortfall is deliberate and harmful to its investment.
Alleged Crude Shortfall and Import Cost Burden
The refinery claimed that it is currently receiving only about five crude oil cargoes per month from NNPC, far below the estimated 13 cargoes required for full operational capacity.
Because of this shortfall, it said it has been forced to rely heavily on international crude traders, who sell at higher prices and impose additional premiums due to global market conditions.
Dangote Refinery described this situation as economically damaging and unsustainable, arguing that it undermines the viability of local refining in Nigeria.
It further accused the government of creating regulatory contradictions that worsen its operational challenges.
