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Dangote Refinery Accuses FG, NNPC of Crude Supply Sabotage
The Dangote Petroleum Refinery has accused the Federal Government and the Nigerian National Petroleum Company Limited (NNPC) of deliberately sabotaging its operations by failing to supply adequate crude oil, an allegation both the government and NNPC strongly denied.
In an affidavit filed at the Federal High Court in Lagos, the refinery sought an interim injunction to stop the issuance and renewal of petroleum import licences, arguing that crude supply agreements with NNPC are central to its operations.
Dangote alleged: “The government, through the NNPC, has deliberately neglected to ensure adequate supply of crude oil to local refineries in a bid to sabotage the applicant’s investment in the oil and gas industry in Nigeria.”
The company said it currently receives only five crude cargoes per month, less than half of the 13 cargoes required for full production, forcing it to buy from international traders at premium prices.
It also accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of breaching the Petroleum Industry Act (PIA) by issuing import licences despite domestic production exceeding national demand. Firms such as A.A. Rano, Matrix Petroleum, and AYM Shafa were listed among beneficiaries.
Dangote warned that continued issuance of import licences and crude supply shortfalls could jeopardise its investment, threaten jobs, and harm the wider economy. “Should the applicant’s investment fail, it would lead to mass loss of employment for Nigerian citizens,” the affidavit stated.
Responding, the NNPC dismissed the claims, saying the suit was premature and that Dangote lacked locus standi.
“The plaintiff’s petroleum products are already sold at significantly high and fluctuating market prices, dictated by its commercial interests,”
NNPC further defended the roles of the NUPRC and NMDPRA, insisting: “The government and its agencies have not deliberately denied the plaintiff crude oil supply or sabotaged its refinery operations.”