The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has criticised the lawsuit filed by the Dangote Petroleum Refinery seeking to revoke fuel import licences issued by the Federal Government through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The association warned that the legal action could destabilise Nigeria’s downstream petroleum sector, disrupt fuel supply security, and weaken competition in the market.
Dangote Refinery recently approached the Federal High Court in Lagos to challenge the issuance of petrol import licences to several oil marketing companies and the Nigerian National Petroleum Company (NNPC) Limited.
The refinery argued that the approvals violate provisions of the Petroleum Industry Act (PIA), which it says only permits fuel imports when there is a shortfall in local supply. The company maintains that continued fuel importation undermines domestic refining investments and negatively affects the operations of local refineries.
According to reports, the NMDPRA recently granted import licences to six marketers — including NIPCO, AA Rano, Matrix Energy, Shafa Energy, Pinnacle Oil and Gas, and Bono Energy — covering hundreds of thousands of metric tonnes of Premium Motor Spirit (PMS), commonly known as petrol.
DAPPMAN defends competitive fuel market
In response, DAPPMAN, on Sunday, insisted that the Nigerian downstream petroleum sector operates effectively because of the participation of multiple players, warning against allowing a single refinery to dominate the market.
The association stated that the Petroleum Industry Act empowers the regulator to issue import licences where necessary to guarantee energy security and stable fuel supply across the country. It added that attempts to restrict imports solely for the commercial interests of one refinery could negatively impact consumers and market stability.
“The import licences at the centre of this lawsuit are not administrative courtesies. They are the legal instruments through which Nigeria’s fuel supply chain functions,” the association said.
DAPPMAN also disclosed plans to engage legal counsel and work with affected member companies to defend the current licensing framework and maintain what it described as a competitive petroleum market. EFA.
