Nigeria’s gasoline entrepreneurs are pushing again in opposition to Dangote oil refinery’s lawsuit searching for to invalidate import permits, warning that the transfer may disrupt provide and competitors in Africa’s largest oil market.
Reuters reported final week that Dangote filed a brand new lawsuit in opposition to the Nigerian authorities, difficult a refined product import license issued to a marketer and nationwide oil firm NNPC, saying it risked harming Dangote’s $20 billion refinery and locking in inefficiencies.
The refinery has beforehand known as for import restrictions, saying it could possibly meet home demand.
Nevertheless, the Petroleum Merchandise Advertising and marketing Affiliation of Nigeria (DAPPMAN) stated on Sunday that the license granted by regulator Nigeria Midstream and Downstream Petroleum Regulatory Authority was not an “administrative favor” however a authorized instrument to help the nation’s gasoline provide chain.
Mr DAPPMAN stated the Petroleum Business Act empowers regulators to difficulty licenses as vital to make sure safety of provide. “These licenses exist to guard provide and are usually not supposed to penalize any single producer,” the corporate stated in a press release.
The group additionally warned that retroactively revoking permits may destabilize downstream sectors the place corporations have invested closely in storage and logistics networks based mostly on present approvals.
“We respect Dangote’s proper to hunt authorized redress,” DAPPMAN added. “What we can not settle for is that the industrial pursuits of personal refineries override the orders of regulators.”
Regardless of being a serious oil producer, Nigeria has lengthy been depending on imports.
The Dangote refinery, which started processing crude in 2024, is seen as key to lowering that dependence, however provide dynamics and pricing stay controversial.
DAPPMAN insisted that the market ought to stay aggressive and open to a number of contributors, and stated it might work with legal professionals and related authorities.
