ABUJA, Nigeria (VOICE OF NAIJA)-The Dangote Petroleum Refinery and Petrochemicals FZE has accused the Federal Government and its agencies of alleged deliberate sabotage, saying their actions are undermining its operations and frustrating its investment in Nigeria’s downstream petroleum sector.
The Federal Government, however, has denied the allegation.
In an affidavit filed before the Federal High Court in Lagos in support of an application for an interim injunction to stop the issuance and renewal of petroleum import licences, the company said its operations are based on crude oil supply agreements with the Nigerian National Petroleum Company Limited, which it described as central to its refining business.
The NNPC, in response, rejected the claims and indicated it would file a preliminary objection challenging the competence of the suit and the refinery’s locus standi.
A copy of the affidavit showed that the refinery told the court that, as an operator of a domestic refinery in Nigeria, its business includes purchasing crude oil from the Federal Government through the NNPC and refining products for local sale to reduce pressure on government supply obligations.
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However, the company alleged that the government had failed to meet its obligation to ensure adequate crude supply to local refineries, insisting the development was intentional and harmful to its investment.
“However, contrary to the government’s obligation to ensure the adequate supply of crude oil to local refineries such as that of the applicant, 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 refinery alleged.
It further said the shortfall in crude allocation had forced it to rely heavily on international traders, who impose additional premiums on already high global market prices.
The refinery also disclosed that it currently receives five crude oil cargoes monthly from the NNPC, “which is less than half of the 13 cargoes” required for full operational capacity.
On regulatory issues, the company alleged that despite its production exceeding domestic demand, the Nigerian Midstream and Downstream Petroleum Regulatory Authority has continued issuing and renewing import licences in breach of the Petroleum Industry Act.
“In spite of full production by the applicant’s refinery, the reported production of the applicant’s refinery as published by the NMDPRA (both of which exceed national consumption) and the provision of Section 317(9) of the PIA… the NMDPRA has threatened and proceeded to issue import licences to other companies and petroleum marketers in violation of the provisions of the PIA,” it stated.
The refinery listed companies allegedly benefiting from import licences, including A.A. Rano Limited, Matrix Petroleum Services Limited and AYM Shafa Limited, and said import licences are issued quarterly, expressing concern that the NMDPRA may continue to renew them.
It also accused government agencies of creating an unfavourable business environment, stating, “The government’s deliberate acts of sabotage through the NMDPRA, NUPRC and the NNPC create a negative environment for the applicant’s investment in the Nigerian oil and gas industry.”
Despite its complaints, the company said it had engaged relevant authorities in line with the Petroleum Industry Act through a letter dated June 14, 2024, repeatedly appealing for proper implementation of the law.
On its investment, the refinery said it committed substantial capital based on expectations of regulatory support and policy stability under the PIA, warning that the alleged actions could have serious consequences.
“The defendant’s violation of the provisions of the PIA through the NMDPRA, NUPRC and the NNPC portends grave consequences for the applicant’s investment in the oil and gas sector.”
It also warned of broader economic and employment risks, stating that it is among the largest private employers in the country and that disruption could lead to job losses.
“The applicant is one of the largest employers of labour in the formal sector of the country after the government and the largest private employer in the country. Should the applicant’s investment in the refinery fail, it would lead to mass loss of employment for Nigerian citizens.
“If the defendant is not restrained from issuing or continuing with the issuance and/or renewal of import licences to persons/companies (through the agencies under its supervision, such as the NMDPRA) without complying with the provisions of the PIA, the applicant’s investment will be in severe jeopardy of failing, and it would be impossible to compensate this loss in damages.
“The balance of convenience is in favour of the applicant, as it will suffer irreparable damage if this application is not granted,” Dangote argued.
The company filed the motion under Suit No: FHC/L/CS/2026, seeking interim injunctions against the Attorney General of the Federation and relevant government agencies.
Responding, the NNPC said it would challenge the suit’s competence and the refinery’s legal standing. “The plaintiff’s suit is premature; the plaintiff lacks locus standi,” the affidavit said.
It also maintained that the refinery’s products were already subject to market-driven pricing.
“The plaintiff’s petroleum products are already sold at significantly high and fluctuating market prices, dictated by its commercial interests,” it said.
The NNPC defended the roles of the NUPRC and NMDPRA, stating, “The 2nd defendant, NMDPRA, NUPRC and other relevant agencies of government have not frustrated the plaintiff in the execution of its business objectives or refinery operations in any manner whatsoever.”
It further denied allegations of sabotage, saying, “The government and the 2nd defendant have not deliberately denied the plaintiff a crude oil supply,” and added, “Contrary to the plaintiff’s allegations, the 2nd defendant has not sabotaged the plaintiff’s refinery operations.”