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The Digest:

The Depot and Petroleum Products Marketers Association of Nigeria has warned that a lawsuit filed by Dangote Petroleum Refinery seeking to void fuel import licences could destabilise Nigeria’s downstream petroleum sector. Dangote refinery filed a suit challenging licences issued by NMDPRA to marketers, arguing they breach a court order and the Petroleum Industry Act. DAPPMAN said the licences are critical to maintaining Nigeria’s fuel supply chain and energy security, adding that no private refinery’s interests should override the regulator’s mandate to ensure adequate supply.

Key Points:
  • DAPPMAN members have invested billions in depot infrastructure, relying on licence validity.
  • The lawsuit introduces uncertainty into the entire downstream supply chain.
  • Dangote argues imports are only permitted when the domestic supply is insufficient.
  • NMDPRA maintains licences exist to protect supply security, not disadvantage any producer.
  • A ruling against import licences could create a near-monopoly for Dangote refinery.

Sources: Business Post, Nairametrics