Connect with us

Business

DPRP’s Import Licenses Suit against FG Suffers Setback

Published

on

The petition filed by the Dangote Petroleum Refinery and Petrochemicals (DPRP) against the Federal Government over the issuance of fuel import licences to some petroleum marketers has suffered a setback because of the absence of the presiding judge, Justice Chukwujekwu Aneke of the Federal High Court, Lagos.

The matter was listed for Monday but could not be called up as Justice Aneke was said to be indisposed, prompting the court to adjourn the matter until October 7 for hearing.

The suit, marked FHC/L/CS/857/2026, also involves the Nigerian National Petroleum Company Limited (NNPC Ltd) and several petroleum marketing firms, including NIPCO, AA Rano, Matrix, Shafa, Pinnacle and Bono, which the refinery alleges benefited from the disputed import licences.

ALSO READ: FG Pressures Dangote, Marketers to Cut Depot Prices

The DPRP is asking the court to invalidate the fuel import licences allegedly issued or renewed in favour of the marketers and NNPC Ltd, contending that the approvals were granted in violation of an earlier court order.

The application, brought under Sections 6, 36(1) and 287 of the 1999 Constitution (as amended), Order 26 Rules 1 and 2 of the Federal High Court (Civil Procedure) Rules 2019, and the court’s inherent jurisdiction, seeks an order setting aside all import licences issued or renewed on or about May 6, 2026.

The refinery argues that the licences were granted despite the court’s April 29, 2026 order directing all parties to maintain the status quo as it existed on April 2, 2026.

In its defence, however, the NNPC Ltd urged the court to dismiss the suit, maintaining that the Petroleum Industry Act (PIA) and the Federal Government’s Backward Integration Policy empower the relevant regulatory authorities to issue fuel import licences whenever necessary to guarantee national supply.

The national oil company argued that there is no blanket prohibition on fuel imports, particularly where imports are required to ensure product availability and market stability.

The NNPC Ltd further accused the DPRP of attempting to monopolise Nigeria’s downstream petroleum market through the litigation.

According to the company, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) acted within its statutory powers in issuing the disputed licences, noting that the law permits such approvals for companies with local refining capacity or a proven track record in petroleum trading.

It also contended that the PIA does not impose a total ban on fuel imports except where there is a verified domestic surplus, insisting that importation remains a lawful tool for stabilising fuel supply and prices.

However, the DPRP on its part, argued that the continued issuance and renewal of import licences undermine local refining and violate Section 317(9) of the PIA, which it interprets as restricting imports to situations where there is a proven domestic supply shortfall.

The refinery maintained that with its installed refining capacity of about 650,000 barrels per day, Nigeria has sufficient domestic refining capacity to meet local demand. It relied on regulatory data which it said indicates that daily production of petrol and diesel now exceeds national consumption.

It added that the refinery was established to meet Nigeria’s refined petroleum needs while generating export surpluses, describing the project as a strategic national investment expected to create a multi-billion-dollar market for Nigerian crude oil.

THe NNPC Ltd, however, disputed those claims, arguing that Dangote had failed to present credible and verifiable evidence demonstrating that it could independently guarantee Nigeria’s fuel supply.

The legal dispute has since expanded following an application by the NMDPRA to join the proceedings, transforming the case into a broader challenge over Nigeria’s fuel import policy and the regulation of the downstream petroleum sector.

The DPRP further alleged that the NMDPRA, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the NNPC Ltd have created a hostile operating environment by continuing to issue import licences despite what it described as the absence of any domestic fuel supply shortfall.

The refinery further accused the NNPC Ltd of failing to supply it with adequate crude oil, claiming it receives only about five crude cargoes monthly instead of the 13 cargoes required to operate at full capacity, forcing it to source crude from the international market at higher costs.

The NNPC Ltd denied the allegation, insisting that crude oil allocation is based on operational, commercial, security and logistical considerations, rather than any attempt to frustrate the DPRP’s operations.

The company warned that restricting fuel import licences could expose Nigeria to supply disruptions, price volatility and threats to national energy security.

On its part, the DPRP maintained that continued fuel imports would undermine local refining, discourage investment and frustrate Nigeria’s long-term objective of achieving energy self-sufficiency.

As part of its reliefs, the refinery is seeking an interim injunction restraining the Attorney-General of the Federation and the relevant regulatory agencies from issuing or renewing import licences for Premium Motor Spirit (PMS), Automotive Gas Oil (AGO) and Jet A1 pending the determination of the suit, arguing that it would suffer irreparable financial and operational losses if the licences continue to be issued.

Business

Renaissance Capital Sees Significant Upside in Dangote Refinery, Lifts Valuation by 33.4%

Published

on

Leading investment research firm Renaissance Capital Africa (RCA) has upgraded its valuation of Dangote Petroleum Refinery and Petrochemicals (DPRP) to N700.41 per share, implying a 33.4 percent upside from the refinery’s IPO offer price of N525 per share.

According to RCA, the valuation increase reflects the refinery’s exceptional earnings performance in the first nine months of 2026, driven by stronger refining margins and better-than-anticipated operational results. Revenue, EBITDA and net profit all exceeded the firm’s expectations during the period.

READ ALSO: Dangote Refinery IPO Elicits Participation in 90 Countries Globally

In its October 16, 2026, update, titled “Stronger Refining Margins Drive Earnings Outperformance,” the investment firm cited robust refining margins and stronger operating results as key drivers of the enhanced valuation.

The remarkable investor interest comes against the backdrop of the refinery’s strong operational and financial performance. For the nine months ended September 30, 2026, the DPRP reported revenue of US22.5 billion and net profit of US4.7 billion, representing one of the strongest financial performances recorded by an African industrial enterprise in recent years.

The results marked a significant turnaround from the corresponding period in 2025, when the company recorded a loss of US117.2 million. Revenue grew by 144 percent from US9.2 billion, while EBITDA increased nearly nine-fold to US5.5billionfromUS627.6 million. Operating cash flow rose more than ten-fold to US$3.68 billion, underscoring the refinery’s growing ability to generate substantial earnings and cash flow from its operations.

The company also strengthened its balance sheet considerably, moving from a net debt position of US1.73 billion as of September 2025 to a net cash position of US651 million by September 2026, reflecting improved liquidity and financial resilience.

Continue Reading

Business

Dangote Refinery IPO Elicits Participation in 90 Countries Globally

Published

on

The Dangote Petroleum Refinery & Petrochemicals (DPDP) has revealed that its ongoing Initial Public Offering (IPO) has attracted exceptional participation from investors across Africa and around the world, with subscriptions received from more than 90 countries, including investors from 51 of Africa’s 54 nations.

The unprecedented level of participation positions the transaction as Africa’s first truly pan-African public offering, reflecting strong investor confidence in African-led industrialization and a growing desire among Africans to own strategic assets built on the continent.

The company noted that the IPO has already set new benchmarks in the capital markets, breaking the Nigerian market record on its opening day and surpassing the previous African record within its first ten days, driven by robust demand from retail investors, pension funds, institutional investors, asset managers, and members of the investing public.

On the milestone, Chief Financial Officer of Dangote Group, Murat Erden, said: “This offering represents far more than a capital-raising exercise. It is a landmark opportunity for Africans and global investors alike to participate in the ownership of one of the continent’s most transformative industrial assets. The extraordinary participation from individuals and institutions across Africa demonstrates a shared conviction that Africans should not only benefit from industrial development but also own and create wealth from it.”

The remarkable investor interest comes against the backdrop of the refinery’s strong operational and financial performance. For the nine months ended September 30, 2026, the DPRP reported revenue of US22.5billion and net profit of US4.7 billion, representing one of the strongest financial performances recorded by an African industrial enterprise in recent years.

READ ALSO: Makinde Fires Back at Presidency, Insists on ₦9tn NLNG Dividend Shortfall

The results marked a significant turnaround from the corresponding period in 2025, when the company recorded a loss of US117.2 million. Revenue grew by 144 percent from US9.2 billion, while EBITDA increased nearly nine-fold to US5.5 billion from US627.6 million. Operating cash flow rose more than ten-fold to US$3.68 billion, underscoring the refinery’s growing ability to generate substantial earnings and cash flow from its operations.

The company also strengthened its balance sheet considerably, moving from a net debt position of US1.73 billion as of September 2025 to a net cash position of US651 million by September 2026, reflecting improved liquidity and financial resilience.

According to Erden, the refinery’s current performance significantly exceeds the assumptions underpinning the IPO valuation. “Our financial performance has already advanced well beyond the baseline assumptions used in determining the IPO valuation. The refinery’s operational momentum, scale and efficiency continue to create substantial shareholder value and reinforce our confidence in its long-term growth prospects.”

In a major boost to African capital-market integration, the transaction has also benefited from pioneering cross-border market collaborations involving Botswana, Egypt, Ethiopia and Kenya, helping to broaden access and reduce barriers to participation for investors across the continent.

The DPDP described the IPO as a powerful demonstration of the increasing sophistication, depth and interconnectedness of African financial markets, providing a blueprint for future continent-wide investment offerings.

The company reiterated that the IPO provides a unique opportunity for investors to become shareholders in one of Africa’s largest and fastest-growing industrial enterprises, with the potential for USD-linked dividends, subject to the company’s dividend policy and applicable regulatory approvals.

With the offer scheduled to close on 27 October 2026, the company has intensified investor education and engagement activities across key markets to ensure broader inclusion and participation. The refinery emphasized that no further extension of the offer period is currently planned.

On the significance of the transaction, Erden added: “We are witnessing the emergence of a new chapter in African industrial ownership and capital-market development. The overwhelming response from investors across 51 African countries and more than 90 countries globally is a resounding vote of confidence in Africa’s future and in the ability of world-class African enterprises to deliver sustainable value for shareholders.”

The company expressed appreciation to regulators, stockbrokers, issuing houses, financial institutions, fintech partners, community leaders, investor associations and the investing public for their support and participation throughout the offer period.

 

Continue Reading

Business

Tesla Aims for 2028 Commercial Production of Flying Car

Published

on

Tesla has set a 2028 commercial production date for its new Roadster sports car that can briefly rise into the air using rocket technology.

According to CNN, the date was revealed when the manufacturers demonstrated its functionality on Thursday at a SpaceX testing facility in Texas, United States, where the two-seater vehicle performed a series of manoeuvres, including driving upside down before making a short airborne movement.

The prototype was operated without a driver during the test, with Musk saying the decision was taken “to make sure we don’t kill anyone.”

“Success is not guaranteed. I mean that. It’ll probably work, but if it doesn’t work, we’re at a safe distance,” he said.

READ ALSO: 2027 Election: ‘Your Future Is More Valuable’ — IGP Warn Youths Against Political Violence

CNN reported that the vehicle uses 10 nozzles and high-pressure air tanks to generate thrust, with Musk claiming it could accelerate from zero to 60 miles per hour in less than a second.

The Tesla boss attributed the development to cooperation between the electric vehicle manufacturer and SpaceX, the rocket company he also leads.

He described the project as “the results of what happens when you have a collaboration with the world’s best car company and the world’s best rocket company.”

Musk also sought to assure spectators that the demonstration was genuine, saying, “We need an audience to prove that it’s not AI or SI. So you guys can tell people you saw it with your eyes, because what you see with your eyes, you will not believe.”

Despite the display, questions remain about whether the vehicle can achieve sustained flight and how practical it would be for everyday transportation.

Roger Conner, curator for vertical flight at the Smithsonian’s National Air and Space Museum, told CNN that combining the requirements of road vehicles and aircraft presented significant engineering challenges.

“Aircraft are extremely sensitive to weight, whereas with ground vehicles you want them to have bumpers and crumple zones and all that,” he said.

“Inevitably, something that is a hybrid between the two is going to be a poor performing aircraft and a poor performing vehicle, and also quite expensive,” he added.

Conner questioned whether the demonstration amounted to flying in the conventional sense.

“We’re not talking about sustained flight. We are literally talking about hopping,” he said.

However, Jim Dukhovny, chief executive of flying car startup Alef, said the technology was achievable, while pointing to the difficulties involved in making such vehicles transition safely from vertical take-off to forward flight.

“It absolutely is 100% feasible,” he told CNN.

“That being said, the hardest part on all eVTOLs, and for us, it’s a transition from (rising) vertical to (moving) forward. It needs to be extremely careful, making sure you do not lose lift, and making sure it’s very stable,” he added.

CNN also reported that Alef’s prototype weighs about 254 pounds, uses eight propellers and is designed to carry one person.

Musk said Tesla intended to begin production of the new Roadster in 2028.

CNN reported that the latest display adds to Musk’s ambitions to push Tesla’s vehicle technology beyond conventional electric cars, although the prototype’s ability to operate as a practical flying vehicle has yet to be established.

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.

0
Would love your thoughts, please comment.x
()
x