Business
Dangote, NNPC Ltd Wrestle in Court over Crude Supply Sabotage
The Nigerian government and the Dangote Petroleum Refinery and Petrochemicals FZE (DPRP) are at daggers drawn over allegations of crude supply sabotage, which the refinery alleges is aimed at undermining its investments and frustrating its operations.
Though the government, through her agencies deny the allegations, the refinery in a recent affidavit filed before the Federal High Court in Lagos seeking an interim injunction to stop the issuance and renewal of petroleum import licences, averred that its operations are anchored on crude oil supply arrangements with the Nigerian National Petroleum Company Limited (NNPC Ltd), which it described as central to its refining business.
However, the NNPC Ltd refuted the claims, stressing that it would raise a preliminary objection challenging the competence of the suit and the refinery’s locus standi.
In the affidavit, the refinery told the court that, pursuant to its status as the operator of a domestic refinery in Nigeria, its business operations include purchasing crude oil from the Federal Government of Nigeria (FGN) through the NNPC Ltd and refining the products for sale to Nigerians to ease pressure on the government to make petroleum products available for local consumption.
The refinery alleged that the government had failed in its obligation to ensure adequate crude supply to local refineries, claiming the development was deliberate 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.
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According to the company, the shortfall in crude allocation has forced it to consistently source a substantial portion of its crude feedstock through international traders, who charge additional premiums on top of already elevated spot market prices.
The refinery further disclosed that its current allocation from the NNPC Ltd falls far below operational requirements, saying it currently receives just five crude oil cargoes per month from the government’s oil major, “which is less than half of the 13 cargoes” required to maintain full supply of petroleum products.
On regulatory matters, the DDRP alleged that despite producing above domestic demand, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has continued to issue and renew import licences in breach of the Petroleum Industry Act (PIA).
“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 some of the companies allegedly benefiting from the import regime, including A.A. Rano Limited, Matrix Petroleum Services Limited and AYM Shafa Limited.
It further argued that import licences are issued quarterly, “and the applicant is apprehensive that the NMDPRA will continue to issue or renew import licences to these other companies”.
The company also accused government agencies of creating an unfavourable operating environment for its refinery, 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 grievances, the DPRP told the court that it had made attempts to engage relevant authorities in line with the objectives of the PIA through a letter dated June 14, 2024, routinely appealing to the government agencies for the implementation and execution of the objectives of the PIA.
On its investment, the company said it committed massive capital with the expectation of regulatory support and policy stability under the PIA.
It warned that the alleged actions of government agencies could have severe consequences for its operations and the wider economy. “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 stressed its role in employment and national development, warning of broader socio-economic risks if its operations are disrupted. The company argued that it faces irreparable harm if the court does not grant its request.
“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 an ex parte motion on notice under Suit No: FHC/L/CS/2026, seeking urgent interim injunctions against the Attorney General of the Federation and the government agencies.
In response to the allegations, the NNPC Ltd said it would raise a preliminary objection challenging the competence of the suit and the refinery’s locus standi. “The plaintiff’s suit is premature; the plaintiff lacks locus standi,” the affidavit said.
The state oil major declared that the DPRP’s petroleum products were already expensive and subject to price swings dictated by commercial interests. “The plaintiff’s petroleum products are already sold at significantly high and fluctuating market prices, dictated by its commercial interests,” the NNPC Ltd averred.
Specifically, the NNPC Ltd defended the roles of the NUPRC and NMDPRA in the dispute, saying, “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.”
In addition, the NNPC Ltd denied allegations of sabotage and deliberate denial of crude oil supply to the refinery. “The government and the 2nd defendant have not deliberately denied the plaintiff a crude oil supply,” the company stated.
“Contrary to the plaintiff’s allegations, the 2nd defendant has not sabotaged the plaintiff’s refinery operations,” it submitted.
Business
DPRP’s Free Fuel Delivery Expands to Kano, Imo, Nearly 10 More States
In a move expected to reduce distribution costs for independent petroleum marketers and create room for lower petrol prices at the pump, the Dangote Petroleum Refinery & Petrochemicals (DPRP) has expanded its free petroleum product delivery initiative to Kano, Imo, Anambra and Nasarawa States.
A company statement on Sunday in Lagos, has it that the initiative, which began with deliveries to Lagos, Ogun, Rivers, Kaduna, Abuja and Delta States, is designed to bring petroleum products closer to marketers and retailers while removing the cost of transporting products over long distances from the refinery to various parts of the country. By absorbing the delivery cost, the refinery is reducing one of the key expenses built into the downstream distribution chain.
Group Executive Director, Commercial Operations, Oil & Gas, WAEP and Fertiliser, Fatima Aliko Dangote, said the initiative was designed to ensure that the benefits of domestic refining translate into tangible savings for businesses and consumers. “The value of domestic refining must ultimately be felt beyond the refinery gate. By absorbing the cost of delivering petroleum products to our customers, we are removing a significant component of the distribution burden and creating room for those savings to flow through the value chain to consumers. Our goal is to make fuel distribution more efficient, reduce avoidable costs and support more competitive pump prices across Nigeria.”
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The expansion has been welcomed by the Independent Petroleum Marketers Association of Nigeria (IPMAN), which said the initiative would significantly reduce some of the financial and logistical pressures confronting independent marketers and contribute to lower prices for consumers.
National Publicity Secretary and Public Relations Officer of IPMAN, Chinedu Ukadike, said the initiative addresses a longstanding challenge in the petroleum products distribution chain, where marketers commit substantial funds to product purchases and may then have to wait for extended periods before their orders are loaded and transported.
“This gesture, if sustained, will be able to alleviate the sufferings of independent marketers,” Ukadike said. “There has been the issue of financial hold-up, whereby marketers pay for products and are not loaded for days and weeks, and they suffer unnecessary hardship bringing the product down.”
According to him, the refinery’s delivery arrangement reduces the period for which marketers’ funds remain tied up, improves cash flow and allows businesses to deploy their capital more efficiently.
“This time around, Dangote has made it very, very easy for marketers. Marketers are jubilating, and you will see the return on investment as an independent marketer. Your money will not be tied down,” he said.
Ukadike said the initiative could also have a direct impact on pump prices because transportation represents a cost that ultimately forms part of the price paid by consumers.
“You also have less risk, and you have petroleum products at your doorstep. Other consumers will also see that our pump price will not continue to go up. The more Dangote brings down its pump price, the more independent marketers will bring down theirs,” he said.
The reduction in distribution costs is particularly significant for marketers serving locations far from the refinery. Under conventional distribution arrangements, petroleum products transported over long distances incur additional costs associated with haulage, vehicle operations, driver expenses, insurance, road risks and other logistics. Removing or reducing these costs can improve the economics of supplying those markets and create greater scope for competitive retail pricing.
The initiative also reduces the operational risks associated with moving large volumes of petroleum products over long distances. By taking products closer to their destination markets, the refinery is helping to shorten the supply chain and improve the reliability and efficiency of product distribution.
Ukadike commended the management of Dangote Refinery for the initiative and urged the company to extend the programme to more locations across the country, particularly in the northern states, to promote wider access to competitively priced petroleum products.
He described the development as a practical demonstration of the benefits of competition and deregulation in Nigeria’s downstream petroleum sector.
“This is the beauty of deregulation and competition,” he said.
The expansion comes as Nigeria’s downstream petroleum sector continues to adjust to the growth of domestic refining capacity and a more competitive market environment. The Dangote Petroleum Refinery, with a capacity of 700,000 barrels per day, is increasingly supplying refined petroleum products to the domestic market while also expanding its presence in international markets.
The free delivery initiative adds another dimension to the refinery’s impact on the downstream sector. Beyond increasing domestic supply, the refinery is now taking steps to reduce the cost of moving those products from the refinery to consumers.
For motorists and households, the potential benefit is straightforward: the lower the cost of moving petrol through the supply chain, the greater the opportunity for marketers to reduce the price consumers pay at the pump.
Business
Safe Driving: Dangote Transport Unveils Novel Real-Time Driver Monitoring Control Room
Dangote Transport has taken another major step towards improving road safety with the launch of a state-of-the-art Driver Monitoring Control Room (DMCR) that allows drivers operating its trucks to be monitored in real time while on transit across Nigeria.
The innovative facility, located at the Dangote Transport operational base in Ibese, Ogun State, highlighted the company’s commitment to leveraging technology and best practices to reduce road accidents and improve drivers’ behaviour.
The Head of Operations, Dangote Transport, Ibese, Mr. David Idiege, described the DMCR as one of the latest additions to the company’s comprehensive safety architecture.
According to him, the facility enables transport control personnel to observe drivers while they are on the road, monitor compliance with safety standards and promptly intervene whenever risky behaviour is detected.
“We are constantly looking for innovative ways to strengthen safety across our transport operations. The Driver Monitoring Control Room represents another significant milestone in our efforts to ensure that all journeys are conducted safely and responsibly,” Idiege said.
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He explained that the initiative forms part of a broader strategy aimed at reducing accidents, enhancing operational efficiency and safeguarding both the drivers and other road users.
“Safety remains our highest priority. We recognize the responsibility that comes with operating a large fleet of vehicles across the country. That is why we continue to invest heavily in technology, systems and training that help us maintain the highest safety standards,” he stated.
Idiege disclosed that the company has, over the years, implemented several safety measures designed to improve driver performance and minimize risks on the road.
He listed these initiatives to include speed limiters, vehicle immobilizers, speed boosters control systems, facial recognition devices, journey management protocols, mandatory drug and alcohol testing, compulsory rest periods for drivers, periodic recertification as well as regular training and retraining programmes.
“Our approach is holistic. Technology alone is not enough. We combine technology with strict operational procedures, driver welfare programmes, competency assessments, recertification exercises and continuous capacity building to ensure that our drivers remain professional and safety-conscious at all times,” he added.
He further explained that compulsory rest policies help combat fatigue, one of the leading causes of road accidents globally.
“We do not encourage driver fatigue. Every driver is required to comply with our journey management procedures and mandatory rest schedules. We understand that alert and healthy drivers make safer decisions on the road,” he said.
Also speaking during the tour, the Head of Transport Control, Mr. Ifeanyi Ezeala, who conducted journalists around the control facility, explained that the on-board camera system installed across thousands of Dangote trucks was facilitated by technology partner Nova Tracks.
According to Ezeala, the camera system enables real-time visibility into driver conduct and provides transportation managers with critical information needed to proactively address safety concerns.
“The technology allows us to monitor driver activities while journeys are in progress. The cameras provide live feeds and alerts, helping us detect behaviours that could compromise safety and enabling us to take immediate corrective action,” Ezeala explained.
He noted that the monitoring solution is not intended to police drivers but rather to support them and ensure they operate under safer conditions.
“Our objective is preventive rather than punitive. We want to identify potential risks before they develop into incidents. By having visibility into operations in real time, we can contact drivers where necessary, provide guidance and support safer driving decisions,” he said.
Ezeala stated that the system has enhanced fleet management capabilities by providing valuable operational data that strengthens decision-making and supports the company’s overall safety objectives.
“The transportation industry is evolving rapidly, and technology now plays a critical role in fleet safety management. By integrating advanced monitoring systems into our operations, we are creating a safer environment for our drivers and for all road users,” he said.
He commended Nova Tracks for its role in deploying the technology and supporting the company’s vision for safer transportation operations.
The Driver Monitoring Control Room is the latest in a series of investments by Dangote Transport aimed at promoting safe driving, reducing accident risks and advancing operational excellence across its nationwide logistics network.
With thousands of trucks moving raw materials and finished products daily across the country, the company says it will continue to deploy innovative solutions that support safer journeys, improve driver performance and contribute to a safer road transport ecosystem in Nigeria.
Business
NNPC Ltd Expresses Concern for Dearth of Skills in Energy Sector
Nigeria’s widening energy workforce and technical skills gap has left the country on the verge of losing control of its energy future unless the matter is addressed with the urgency it deserves.
The Nigerian National Petroleum Company Limited (NNPC Ltd) raised the concerns on Thursday at the Oil and Gas Trainers Association of Nigeria (OGTAN) HCD Conference and Expo in Warri, Delta State.
The Chief Human Resources Officer, NNPC Limited, Kazachiyang Nuhu, observed the convergence of the Petroleum Industry Act (PIA), the Decade of Gas, which raised participation by local operators and the global energy transition already created higher demand for technical talent that the industry was struggling to supply.
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In a presentation at the OGTAN conference, Nuhu maintained that the changing energy landscape, driven by policy, market shifts, technology and changing expectations of younger workers, had created a technical talent demand that Nigeria could not afford to ignore.
He said artificial intelligence, digitalisation and automation were compressing skill cycles, while capital was increasingly moving towards liquefied natural gas, cleaner molecules and low-carbon opportunities.
Nuhu warned that unless the workforce was urgently reskilled and repositioned, Nigeria could lose its ability to effectively participate in the emerging energy economy.
“Reskill, reposition or risk becoming a spectator in our own industry,” he told stakeholders at the conference.
He identified workforce and skills gaps, an ageing workforce and brain drain, commonly referred to as ‘japa’, among the major challenges confronting the industry.
He also identified a widening disconnect between academia and industry, particularly the gap between what was taught in educational institutions and what the industry required from employees from day one.
Other challenges highlighted included weak safety culture, spills and flaring; vandalism, crude theft, surveillance and metering gaps; supply of quality materials and equipment; ageing assets, reliability and project overruns; digital oilfield and environmental, social and governance skills; as well as refinery operations, product quality, LPG safety and trade finance.
Nuhu noted that the solution required a fundamental shift in how human capital development was approached across the industry, noting that training must become more closely linked to production, safety, reliability and cost, while programmes must be based on current field realities rather than generic manuals.
He called for training to be benchmarked against global standards and supported by emerging technologies such as simulators, digital twins, virtual and augmented reality and artificial intelligence. “Every naira spent on training must translate to a safer plant, a skilled employee, and a stronger balance sheet,” he added.
Nuhu disclosed that the NNPC Ltd would also change the basis on which it engaged training providers, stressing that trainers must understand the direction in which the industry was heading. “We will partner only with trainers who teach the industry we are becoming, not the one we are leaving behind,” he said.
He said the company was already developing its workforce through initial professional development, career pathways, industry exposure, leadership pipelines, mentorship and knowledge transfer.
According to him, the ultimate measure of Nigerian content should be whether Nigerians were acquiring the expertise required to lead major projects to international standards, saying, “Not how many Nigerians were hired, but how many world-class Nigerians led the project.”
Nuhu argued that true local content should be measured by expertise rather than percentages, with future industry needs spanning technical, digital, commercial and human capabilities.
He said this would include skills in renewable integration, gas-to-power, AI, predictive maintenance, energy economics, carbon markets, sustainable finance, adaptive leadership and systems thinking.
He challenged Nigeria to determine whether it would become a contributor or merely a consumer of the future energy economy. He called on industry players, trainers and academia to move from parallel efforts towards a unified capacity compact.
OGTAN President, Chris Osarunmewense, stressed that the association was seeking to sustain conversations around how Nigeria could develop a workforce capable of delivering on the promises of companies operating in the oil and gas industry.
Osarunmewense said human capital development was a continuous process that required the industry to recognise and nurture people’s potential.
“Human capital develops by progression. At OGTAN, therefore, we treasure the potential of people who have developed human capital in nature to effectively operate within the oil and gas industry,” the OGTAN boss said.
He added that the conference was designed to bring stakeholders together and discuss the ways to address the skill gaps in the industry. According to him, the decision to hold the 2026 conference in Warri, rather than Lagos or Abuja, was deliberate, given the city’s place in the history and development of Nigeria’s petroleum industry.
“For us, this choice was meaningful. Warri is not simply a venue; it is part of the history of Nigeria’s oil and gas industry,” he added.
Osarunmewense said the Niger Delta had for decades remained at the heart of Nigeria’s petroleum industry, with the region’s history of exploration, production, processing, services, technical manpower and community development deeply intertwined with the country’s broader energy economy.
The OGTAN president said the association wanted international participants to experience the Niger Delta not merely as a geographical location associated with petroleum production but as a region with talent, enterprise, technical expertise, institutions, communities and significant human capital potential.
He said the collaboration with the Petroleum Training Institute (PTI) further strengthened Warri’s suitability for the conference because of the institute’s role in technical and professional training in the petroleum sector.
Osarunmewense noted that the industry’s human capital challenges could not be resolved by any single stakeholder, stressing the need for collaboration across the value chain.
“The challenges before the industry are too complex for any single organisation to solve. The government alone cannot solve it. Regulators cannot solve it alone. Oil and gas companies cannot solve it alone. Training providers cannot solve it alone. Universities and technical institutions cannot do so alone either. We need collaboration across the value chain,” he emphasised.





