Dangote Refinery accuses federal government of deliberate sabotage in fresh lawsuit, FG denies claim

• The refinery says it is receiving far less crude oil than needed to operate at full capacity.

• It also claims government agencies are allowing fuel imports that undercut locally refined products despite their production capacity.

• The NNPC has denied all allegations and says it will challenge the case in court.

Dangote Refinery has taken the Federal Government to court, accusing it of deliberately starving the refinery of crude oil and allowing cheaper foreign imports to undercut its operations, allegations the government has flatly denied.

In an affidavit filed before the Federal High Court in Lagos, the refinery says it currently receives just five crude oil cargoes per month from the NNPC, less than half of the thirteen it needs to run at full capacity. 

Because of that shortfall, it has been forced to buy crude from international traders at higher prices, eating into its margins and threatening the viability of the entire operation.

The refinery's position is straightforward: it built a massive plant, created thousands of jobs, and was promised a stable supply of crude and a regulatory environment that protected local production. Instead, it says, the government has done the opposite.

"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 affidavit states.

Beyond the crude supply issue, Dangote is also fighting a separate but related battle over import licences. 

The refinery says it is already producing enough petroleum products to meet national demand, yet the Nigerian Midstream and Downstream Petroleum Regulatory Authority has continued issuing import licences to other companies, allowing foreign fuel to compete directly with locally refined products.

The refinery, named AA Rano Limited, Matrix Petroleum Services Limited and AYM Shafa Limited, are among those allegedly benefiting from the arrangement. It is asking the court to stop the government from issuing or renewing any further import licences.

The NNPC has rejected every allegation. It denied sabotaging the refinery's operations, denied deliberately withholding crude supply, and said its regulatory agencies had not frustrated Dangote's business in any way.

It also pushed back on the refinery's public image, noting that Dangote's fuel prices are already high and subject to fluctuation based on commercial decisions, a line that appears to be laying the groundwork for a broader public argument about who is really serving Nigerian consumers.

The NNPC added that it intends to challenge the suit on procedural grounds, arguing the refinery lacks the legal standing to bring the case at all.

The court is yet to rule on the injunction request.

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