Close Menu

    Subscribe to Updates

    Get the latest news as they happen

    What's Hot

    Alleged Fake Agency, Adeniyi Adeyemi’s Court Charges Struck Out

    October 12, 2026

    Confession About Oriire Attack: Planning And Execution By ANSARU Terror Group, Al-Qaeda

    October 12, 2026

    First Lady Tinubu Sets Off Distribution Of 2m Sanitary Towel Packs For Girls In Public Schools

    October 12, 2026
    Facebook X (Twitter) Instagram
    Megastar Magazine
    • Politics

      2027 Election: On INEC’s Final Release, 18 Presidential Candidates Vying For Position

      October 12, 2026

      As INEC Releases Final List For 2027 Elections, Candidates Contesting For Lagos Governorship Unveil

      October 11, 2026

      INEC Set To Release Final List Of Governorship, State Assembly Candidates On Saturday

      October 9, 2026

      First Lady Remi Tinubu Asks For Support, Says Economy Is Stabilizing, Inflation Is Coming Down

      October 6, 2026

      Sowore Pays Visit to RCCG for Service on Sunday, Meets Adeboye

      October 5, 2026
    • Entertainment
      1. People
      2. Events
      3. Fashion
      Featured
      Entertainment October 12, 2026

      Nollywood’s ‘Her Daughters’ Mother’ Is Selected For Film Africa 2026

      Recent

      Nollywood’s ‘Her Daughters’ Mother’ Is Selected For Film Africa 2026

      October 12, 2026

      MKO Abiola Movie Showing In 48 Cinemas Across Nigeria

      October 12, 2026

      18th Headies To Take Place In April 2027 ~ Says Organisers

      October 11, 2026
    • Business

      MTN Opens up on Network Outage in Lagos, FCT Including Four Other States

      October 9, 2026

      After 6 Years Operation, Moove Discontinues Nigeria Activities

      October 8, 2026

      2026 Access to Financial Services: Formal Credit Access Doubles to 10% 

      October 7, 2026

      ‘Coca-Cola System Generates $1bn Economic Value in Nigeria’

      October 2, 2026

      Fidelity Bank Headlines Beauty in The Motherland Showcase for 3rd Consecutive Year

      September 28, 2026
    • Health

      WHO Presents New Guidance For Heat-related Illness At Mass Gatherings

      October 1, 2026

      ZAMFARA RELEASE OF FIRST BATCH OF SUCCESSFUL APPLICANTS NURSES & MIDWIVES RECRUITMENT

      September 17, 2026

      Pastor Adeboye Of RCCG Donates Three Dialysis Machines To UBTH

      September 3, 2026

      Lagos Presents Blood Donation Drive Through 10 LGAs

      August 27, 2026

      LAWMA Assures Residents of Plan to Evacuate Refuse Heaps in Lagos

      July 29, 2026
    • Culture

      GLO Sponsorship Commits To 2026 Ofala Festival As It Kicks Off

      October 8, 2026

      FG Plans To Launch African Global Festival In October, Strengthens Culture, Economy

      September 25, 2026

      Awujale Stool: Ruling House Commits Trust In Leaders, Disapproves Removal

      August 13, 2026

      Osun-Osogbo 2026: Nigeria-Africa Celebrates Yoruba Historic Heritage

      August 7, 2026

      FCMB Reiterates Commitment for Ojude Oba as Key Driver of Heritage

      June 7, 2026
    • Lifestyle

      Tinubu Congratulates Shettima on 60th Birthday, Calls him Patriot, Trusted Ally. 

      September 2, 2026

      Gov Dauda Lawal @ 61: A Functionalist In Power

      September 2, 2026

      Jay-Jay Okocha’s Daughter Unveils Wedding Picture In Spain

      August 31, 2026

      Oborevwori, Arigbodi Families Glorified God As Children’s Wedding Ends In Thanksgiving

      August 31, 2026

      Celebrating A Jolly Good Fellow—Happy Birthday, Regie, Mfr

      August 31, 2026
    • Sports

      Olympic Qualifier: Alozie, Kanu Score To Lead Comoros With 2-0

      October 10, 2026

      There’s Possibility of AFCON’s Two-year Cycle ~ CAF President

      October 9, 2026

      Fury-Joshua Bout Sellout Records Over 80,000 Tickets In 60 Minutes

      October 9, 2026

      England Set To Host Netball World Cup For 2031

      October 8, 2026

      Messi Renders Tribute to His Legends ~ Maradona, Father Following Final Argentina Game

      October 8, 2026
    • Contact
    YouTube Facebook Instagram WhatsApp
    Megastar Magazine
    Home » NMDPRA gives reason for issuing oil import licences to NNPCL
    News

    NMDPRA gives reason for issuing oil import licences to NNPCL

    Ifetayo AdeniyiBy Ifetayo AdeniyiJanuary 20, 20258 Mins Read
    Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email Telegram
    Share
    Facebook Twitter WhatsApp Telegram Email

    NMDPRA gives reason for issuing oil import licences to NNPCL

    NMDPRA

    NMDPRA gives reason for issuing oil import licences to NNPCL

    The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has told a Federal High Court in Abuja why it issued oil import licenses to oil marketing companies in the country.

    NMDPRA told Justice Inyang Ekwo in a counter affidavit its filed and deposed to by Idris Musa, a Senior Regulatory Officer in the office, against a suit filed by Dangote Petroleum Refinery and Petrochemicals FZE.

    The regulatory authority, in the application dated and filed Dec. 13, 2024, said the current production of Dangote Refinery, the plaintiff in the suit, is yet to meet the national daily petroleum products sufficiency requirement.

    “Consequently, and in compliance with Section 317 [9] of the PIA (Petroleum Industry Act), the 1st defendant (NMDPRA) issued licenses to import petroleum products to bridge product shortfalls to companies with good track records of international products trading,” Musa said.

    The News Agency of Nigeria (NAN) reports that Dangote Refinery had sued NMDPRA and Nigeria National Petroleum Corporation Limited (NNPCL) as 1st and 2nd defendants.

    Also joined as 3rd to 7th defendants respectively in the originating summons, marked: FHC/ABJ/CS/1324/2024 and dated Sept. 6, are AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.

    The oil company, through its lawyer, Ogwu Onoja, SAN, prayed the court to nullify import licences issued by NMDPRA to the NNPCL and the five other companies for the purpose of importing refined petroleum products.

    The company (plaintiff) also prayed the court to declare that NMDPRA was in violation of Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licenses for the importation of petroleum products.

    It stated that such licenses should only be issued in circumstances where there is a petroleum product shortfall.

    It equally sought a N100 billion in damages against NMDPRA for allegedly continuing to issue import licences to NNPCL and the five companies for importing petroleum products, among other reliefs.

    But the NMDPRA, through its officer, prayed the court to dismiss the suit as it is misconceived, unmeritorious and incompetent.

    Musa argued that Dangote Refinery is not entitled to any of the reliefs sought.

    He said the key functions of NMDPRA is to ensure a vibrant petroleum sector which will be operated in line with international best practice.

    He said it also ensures national energy security through continuity of supply and the prevention of abuse of the market by any individual or group, dominance and unhealthy monopoly, wherein a single company or entity will control the supply chain and determine the fate of over 200 million Nigerians.

    He said in furtherance of the above objectives, the regulatory agency had supported and continued to support all local refineries to enable their optimum capacity utilisation while ensuring that national energy security is maintained.

    According to him, as at 18th Jully, 2024, there are four functional licenced modular refineries.

    “There are also four other refineries owned by the Nigerian National Petroleum Company Limited (NNPCL) which are currently at different stages of maintenance.

    “At the second quarter of 2024, the plaintiff and the four functional licensed modular refineries produced Automative Gas Oil (AGO) and Aviation Turbine Kerosene (ATK) in considerable volumes,” he said.

    Musa, however, added that NMDPRA was closely monitoring the development to ascertain when the locally refined output would meet the country’s daily petroleum products sufficiency.

    Besides, he said the agency is also mandated to promote competition and prevent abuse of dominant market positions and unhealthy monopoly in the oil and gas sector.

    “The Import volume to be allocated between participants (that is licensed importers) by the 1st defendant is based on the criteria to be set out taking into account the respective refining output in the preceding quarter of the year, the share of active wholesale customers, competitive pricing and prudent supply, storage and distribution track records.”

    The official said there had been palpable uncertainties and instability regarding activities and capacity of the Dangote Refinery to solely cater for the petroleum products supply needs of the entire Nigerian population both in short and long term.

    He said the alleged production capacity of the refinery as regards AGO and Jet Oil (Jet A-1) were estimations not backed with scientific proof and the NMDPRA, as regulators, cannot depend on such data to allow the plaintiff own the sole right to cater for the market.

    He said, having taken cognizance of the current state of affairs and in consideration of the oil production output at the preceding quarter before the filing of the suit, NMDPRA found that it would be premature and imprudent to suspend the importation of petroleum products for other entities and simply hand over the sole supply right to Dangote.

    He said the present market structure of local refining would not only result in a monopoly with its pricing implications but also put at risk the nation’s energy security “which is best assured through multiple supply sources given the present market structure of local refining.”

    “The 1st defendant is however optimistic that the anticipated operationalisation of NNPCL’s four refineries in addition to increased output from the four modular refineries will improve the much-required competition in local refining, thereby mitigating the overarching concern of the creation of monopoly and its implication on energy security and pricing.”

    Musa said contrary to Dangote’s argument, NMDPRA’s demand of 0.5 per cent levy is justified.

    He said the levy is prescribed by Sections 47 (2)(c) and 52(7) of the PIA and to be paid at wholesale points by the wholesale customer and not the producer and that this fact is well known to the plaintiff.

    “The plaintiff (Dangote) cannot claim not to be bound by local laws due to its being in a free zone, whilst seeking to take the benefits of the same local laws,” he said.

    According to him, the levies are due immediately upon the sale of petroleum products or natural gas to a wholesale customer and shall be remitted by the plaintiff to the 1st defendant.

    “The plaintiff is to remit such levies to the 1st defendant not later than 21 days following the month of the sale,” he said.

    The official explained that Dangote Refinery was supposed to keep record and or particulars of the levies received from the wholesale customers.

    NMDPRA gives reason for issuing oil import licences to NNPCL

    “I know as a fact that it was when the plaintiff failed to communicate its record of sales of petroleum products or natural gas and remit the statutory levies of 0.5% amongst others that the 1st defendant was constrained to issue a letter dated 10th June, 2024 marked as ‘Exhibit C’ in paragraph 22 of the plaintiffs affidavit.”

    He said the procedure for the payment of the levies agreed is contained in the Midstream and Downstream Petroleum Fees Regulations, 2024, gazetted Nov. 4, 2024.

    He said contrary to the company’s submission, it was untrue that the Dangote Industries Free Zone Regulation 2020 was enacted for it to carry out operations in the free zone “devoid of payment of all levies, taxes and rates by the federal, state and local government in Nigeria.”

    He said it was incorrect to suggest that the refined products from the refinery is to be sold only to Nigerians.

    “Rather, the plaintiff has stated through its alter ego that it need not sell products to only Nigerians, but can sell to other customers globally where there is a demand for same.”

    Musa disagreed that Dangote Refinery’s local production of petroleum products obviates the need to issue import licences to other entities with the capacity to meet the market demands of the Nigerian populace.

    “I know as a fact that the plaintiff does not have the capacity yet, to meet the entire local demand of refined petroleum products based on the count and readiness of its licensed and commissioned production lines.

    “To ensure availability of products to meet the market demand in Nigeria, it is therefore the responsibility of the 1st Defendant to license qualified entities to cater for any shortfall and meet domestic demand.

    “The 1st defendant granted licences to the 2nd to 7th defendants as companies with proven track records of international crude oil and petroleum products trading in line with the provisions of Section 317(8) and (9) of the PIA 2021.

    “It is to meet the shortfall in the domestic supply so as to avoid the hardship and sufferings which inadequate products availability often causes on Nigerians,’ he insisted.

    He denied the allegation that NMDPRA is partaking in any purported “grand conspiracy and concerted efforts” against the refinery, describing it as “an allegation for which the plaintiff has provided no facts or evidence in support.”

    NAN earlier reported that the NNPCL, in its preliminary objection dated and filed Nov. 15, 2024, prayed the court to strike out the case for being incompetent.

     

    Also, the oil marketers, in a joint counter affidavit filed on Nov. 5, 2024, told the court that granting Dangote’s application would spell doom for the country’s oil sector.

    According to them, the plan to monopolize the oil sector is a recipe for disaster in the country.

    The three marketers; AYM Shafa Limited, A. A. Rano Limited and Matrix Petroleum Services Limited, in their response, said the plaintiff did not produce adequate petroleum products for the daily consumption of Nigerians.

    Besides, they argued that there was nothing placed before the court to prove the contrary.

    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email
    Previous ArticleNatasha Akpoti-Uduaghan praises NNPCL for starting Five Mini LNG Plants in Ajaokuta
    Next Article Dangote Refinery gives reason for increment in price of PMS
    Ifetayo Adeniyi
    • Website

    Adeniyi Ifetayo Moses is an Entrepreneur, Award winning Celebrity journalist, Luxury and Lifestyle Reporter with Ben tv London and Publisher, Megastar Magazine. He has carved a niche for himself with over 15 years of experience in celebrity Journalism and Media PR.

    Related Posts

    News October 12, 2026

    Alleged Fake Agency, Adeniyi Adeyemi’s Court Charges Struck Out

    News October 12, 2026

    Confession About Oriire Attack: Planning And Execution By ANSARU Terror Group, Al-Qaeda

    Education October 12, 2026

    First Lady Tinubu Sets Off Distribution Of 2m Sanitary Towel Packs For Girls In Public Schools

    News October 12, 2026

    MTN fixes network outages in Lagos, others, apologises to subscribers

    News October 12, 2026

    Airtel Africa Reaffirms Commitment to Customer Service Delivery

    News October 12, 2026

    Nigeria’s Debt Interest Rises 124% Beyond Revenue

    Leave A Reply Cancel Reply

    Don't Miss
    News October 12, 2026

    Alleged Fake Agency, Adeniyi Adeyemi’s Court Charges Struck Out

    Justice Mohammed Garba Umar of the Federal High Court in Abuja has struck out the…

    Confession About Oriire Attack: Planning And Execution By ANSARU Terror Group, Al-Qaeda

    October 12, 2026

    First Lady Tinubu Sets Off Distribution Of 2m Sanitary Towel Packs For Girls In Public Schools

    October 12, 2026

    Nollywood’s ‘Her Daughters’ Mother’ Is Selected For Film Africa 2026

    October 12, 2026

    Subscribe to Updates

    Get the latest news as they happen

    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    Our Picks

    Telegraph honour late Capt. Okunbo, Lawan, Sanwo-Olu, Emefiele others

    November 25, 2021

    Reinarey Empire Unveils 2022 Collections

    November 11, 2021

    Seasons Greetings!

    December 25, 2021
    New Comments
    • Anozie okolo on Supreme Court Affirms President Tinubu’s Victory As Atiku, Peter Obi Lose
    • Mc richman on Nigeria and South African Music histories
    • Moses Ibrahim on Olu of Warri: Pictorial @ The Ogiame Atuwatse III Economic Summit.
    • Sen Rich Kay on MALARIA ERADICATION: Prince Ned Nwoko & NMEP Meet for joint action.
    Megastar Magazine
    YouTube Facebook WhatsApp Instagram
    • Privacy Policy
    • Terms of Use
    • Contact Us
    © 2026 Megastar Magazine. Designed by MANNDI

    Type above and press Enter to search. Press Esc to cancel.