Stopping fuel importation will create monopoly, sustain fuel crisis  - Marketers - Newstrends
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Stopping fuel importation will create monopoly, sustain fuel crisis  – Marketers

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Dangote Draws Battle Lines as Fuel Import Fight Heads Back to Court

Stopping fuel importation will create monopoly, sustain fuel crisis  – Marketers

Three major oil marketers in the country, yesterday, asked the Federal High Court in Abuja to stop what they described as plot by Dangote Petroleum Refinery and Petrochemicals FZE, to monopolise the energy sector of the economy.

The marketers, including AYM Shafa Limited, A. A. Rano Limited and Matrix Petroleum Services Limited, maintained that allowing Dangote Refinery to takeover the oil sector would spell doom for the country.

However, efforts made to reach the Group Head, Communications, Dangote Group, Mr. Anthony Chiejina, last night, were unsucces-sful as several calls made to his known mobile phone were unanswered, while text and WhatsApp messages were not also responded to at press time.
The companies took the position in a reply they filed to challenge the competence of the suit Dangote’s firm filed to nullify licenses they secured to import refined petroleum products into the country.

The marketers were cited as defendants in the suit marked: FHC/ABJ/CS/1324/2024, which also has the Nigeria Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, and the Nigeria National Petroleum Corporation Limited, NNPC, as defendants.

It will be recalled that Dangote Refinery had, in its suit, queried the propriety of licences issued to other key oil marketers to bring refined petroleum products into the country when it has not recorded any shortfall in its own operations.

According to the plaintiff, NMDPRA acted in breach of Sections 317(8) and (9) of the Petroleum Industry Act, PIA, by issuing licenses for the importation of petroleum products to the defendants.

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The plaintiff told the court that the licences were issued to the defendants, “despite the production of AGO and Jet-A1 that exceeds the current daily consumption of petroleum products in Nigeria by Dangote Refinery.”

It, therefore, prayed the court to award N100billion in damages against the NMDPRA for allegedly continuing to issue import licenses to NNPCL and the other defendants for the import of petroleum products, such as Automotive Gas Oil, AGO, and jet fuel (aviation turbine fuel) into Nigeria.

Specifically, Dangote Refinery, among other things, applied for an order of injunction, restraining the 1st defendant (NMDPRA) from further issuing and/or renewing import licenses to the 2nd to 7th defendants or other companies for the purpose of importing petroleum products.

It further sought an order of court directing the 1st defendant to seal off all tank farms, storage facilities, warehouses, and stations used by the defendants for the storage of all refined petroleum products imported into Nigeria.

“An order of mandatory injunction directing the 1st defendant to withdraw immediately all import licenses issued to the 2nd-7th defendants and other companies other than the plaintiff and other local refineries for the purpose of importing refined petroleum products into Nigeria.

“An order of injunction restraining the 1st defendant from imposing and demanding a 0.5% levy meant for off-takers of petroleum products directly and an additional 0.5% wholesale levy in favour of MDGIF or any other levy or sum against the plaintiff.”

However, in their reply to the suit, dated November 5, 2024, the three marketers told the court that the plaintiff does not produce adequate petroleum products for the daily consumption of Nigerians, saying there was nothing before the court to prove the contrary.

The defendants told the court that they were well qualified and entitled to be issued a licence by the 1st defendant to import petroleum products into the country within the provisions of Section 317(9) of the PIA.

They argued that vesting the plaintiff with the power of monopoly in Nigeria’s petroleum industry, as it was seeking through the legal action, would kill competitive pricing of petroleum products in the country, further deteriorate Nigeria’s critically ailing economy “and unleash untold hardship on Nigerians, all of which constitute a recipe for disaster in the polity.

“That if Nigeria puts all her energy eggs in one basket by stopping importation of petroleum products and allowing the Plaintiff to be the sole producer and supplier of petroleum products in Nigeria, with liberty to determine the prices at which it supplies the products, the prices of petroleum products in Nigeria will continue to rise and energy security will elude Nigeria.

“That in the event of any breakdown in or obstruction to the production chain of the plaintiff which stops it from producing, Nigeria will be thrown into energy crises as Nigeria does not have the reserves that would last it for the at least 30 days that it would need to order, pay for, freight and import refined products into tanks in Nigeria.

“That amid the glaring absence of any credible and demonstrable proof that the Plaintiff refines and supplies adequate petroleum products for the daily use/consumption of Nigerians, giving the plaintiff judicial imprimatur to be the sole supplier of refined petroleum products to Nigerians, thereby encouraging monopoly in a major aspect of Nigeria’s oil industry, is a recipe for disaster in Nigeria’s energy sector,” the defendants added.

They insisted that granting the reliefs sought by the plaintiff, which is aimed at making it a monopolist in Nigeria’s petroleum sector, would leave Nigeria and Nigerians at the mercy of the olaintiff, with respect to availability and cost of purchasing petroleum products in the country.
More so, the defendants told the court that they were fully qualified for the import licences issued to them by the 1st Defendant, as they duly met all the legal requirements.

“The import licences lawfully and validly issued to the defendants did not in any way whatsoever, cripple the Plaintiff’s business or its refinery.

“The import licences issued to the defendants by the 1st defendant are in line with the provisions of Petroleum Industry Act, 2021, the Federal Competition and Consumer Protection Act, 2018 and other relevant laws,” the defendants averred.

Justice Inyang Ekwo had earlier adjourned the matter till January 20, 2025, to enable the parties explore an out-of-court settlement of the dispute, even as the plaintiff expressed its readiness to withdraw the suit.

 

Stopping fuel importation will create monopoly, sustain fuel crisis  – Marketers

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Omoda, Jaecoo bet on warranty, after-sales support to win Nigerian car buyers

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Omoda, Jaecoo bet on warranty, after-sales support to win Nigerian car buyers

 

Omoda and Jaecoo are stepping up investment in warranty protection, spare-parts distribution and after-sales services as the emerging automotive brands seek to strengthen customer confidence and establish a lasting presence in increasingly competitive global markets.

The strategy is particularly relevant to Nigeria, where concerns about spare-parts availability, maintenance costs, technical expertise and the reliability of after-sales support often influence decisions when purchasing new vehicles.

Beyond attractive designs, advanced technology and vehicle performance, motorists increasingly want assurances that their investments will remain protected long after driving their cars out of showrooms.

Recognising this changing customer expectation, Omoda and Jaecoo are expanding their international after-sales infrastructure and warranty programmes to improve the ownership experience and address some of the industry’s longstanding concerns.

In the United Kingdom, vehicles from the two brands come with a seven-year or 100,000-mile warranty, while batteries in electrified models enjoy eight-year coverage.

Although warranty conditions differ across markets, the programme underscores the brands’ emphasis on long-term ownership support and customer assurance.

The companies are also advancing their Super Hybrid System, which combines petrol and electric power to deliver improved fuel efficiency while retaining the convenience of conventional refuelling.

The technology is designed to address a major concern among motorists considering electrified vehicles, particularly those who want the benefits of electric mobility without depending entirely on charging infrastructure.

The Jaecoo J7 PHEV has already attracted considerable attention in the UK market, emerging as Britain’s best-selling new SUV in September.

It also secured a Guinness World Record for the lowest fuel consumption recorded by a plug-in hybrid production SUV during the UK Three Peaks Challenge.

Similarly, the flagship Jaecoo J8 combines 428 horsepower with all-wheel-drive capability and an electric-only driving range of more than 130 kilometres.

In Indonesia, a Jaecoo vehicle also secured a Guinness World Record after covering a verified distance of 1,660 kilometres on a single tank of fuel and battery charge, further highlighting the efficiency potential of the brand’s hybrid technology.

Beyond product development and performance achievements, the companies are strengthening the supply chain that supports vehicle ownership.

A major step in this direction was the opening of a 12,000-square-metre spare-parts distribution centre in Dubai’s Jebel Ali Free Zone in December 2024.

The facility stocks more than 20,000 different components to support parts distribution and improve service delivery.

The company has also indicated plans to establish similar facilities across different continents, with expansion already underway in South Africa.

For Nigeria, where the cost and availability of genuine spare parts can significantly affect vehicle ownership expenses, such investments could have important implications.

A dependable distribution network would help reduce the challenges associated with sourcing replacement components, while effective warranty administration and access to trained technicians could improve customer satisfaction and strengthen confidence in the brands.

As competition intensifies in Nigeria’s automotive market, the ability to provide reliable after-sales support could become just as important as introducing technologically advanced vehicles at competitive prices.

For Omoda and Jaecoo, the challenge will be to translate their growing international infrastructure and warranty commitments into accessible, consistent and responsive services for Nigerian customers.

Ultimately, winning the confidence of Nigerian motorists will require more than impressive vehicles and international performance records. It will depend on the brands’ ability to support customers throughout the entire ownership journey, from the first showroom visit to routine servicing and eventual replacement of parts.

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Why Toyota RAV4 Remains Attractive Choice for Nigeria’s SUV Buyers

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Why Toyota RAV4 Remains Attractive Choice for Nigeria’s SUV Buyers

 

As Nigerian motorists increasingly look for vehicles that deliver comfort, dependable performance, fuel economy and versatility, the Toyota RAV4 continues to offer an appealing proposition in the country’s competitive sport utility vehicle market.

Combining a distinctive exterior design with a thoughtfully crafted interior, practical luggage accommodation and performance engineered for everyday driving, the RAV4 is designed to meet the expectations of individuals and families seeking a vehicle that balances functionality with driving pleasure.

Toyota (Nigeria) Limited (TNL) presents the RAV4 as an SUV that combines refined engineering, comfort and practicality, making it a consideration for motorists navigating the country’s diverse driving conditions.

Comfort and convenience for everyday motoring

One of the RAV4’s major attractions is its emphasis on passenger comfort and convenience.

According to Toyota Nigeria Limited, the vehicle features an automatic air-conditioning system with independent temperature controls for the left and right sides of the cabin. This enables occupants to enjoy a more comfortable interior environment, particularly during Nigeria’s hot weather.

The steering wheel is equipped with conveniently positioned audio control switches, allowing drivers to operate the entertainment system without taking their hands away from the steering wheel.

The interior design also prioritises passenger accommodation, providing generous seating space and flexibility for different transportation needs.

For motorists who regularly travel with family members or require additional luggage capacity, the rear seats can be folded to create more room for carrying larger items.

This practical arrangement makes the RAV4 suitable for everyday commuting, family outings, shopping trips and longer journeys.

Performance that balances acceleration and fuel economy

Performance is another important consideration for Nigerian motorists, particularly those who combine daily urban commuting with occasional interstate journeys.

Toyota Nigeria Limited describes the RAV4’s engine as delivering excellent acceleration from low speeds, while maintaining fuel economy, clean emissions and quiet operation.

This combination is particularly relevant in Nigerian cities, where motorists frequently encounter stop-and-go traffic, congested roads and varying driving conditions.

The emphasis on responsive acceleration and quieter operation also contributes to a more comfortable driving experience.

Fuel economy remains an important consideration for prospective vehicle owners, especially in a market where the cost of running and maintaining a vehicle influences purchasing decisions.

Toyota notes that fuel consumption varies according to fuel quality, environmental conditions and individual driving habits.

## Designed with practicality in mind

Beyond its performance and comfort, the RAV4 offers the versatility expected of a modern SUV.

Its flexible luggage arrangement allows owners to accommodate different cargo requirements by folding the rear seats when additional loading space is needed.

This feature is particularly useful for families, business professionals and motorists who require a vehicle capable of handling both passenger transportation and occasional cargo duties.

The SUV’s interior layout also reflects Toyota’s attention to functional design, with controls positioned to make everyday operation more convenient.

The advantage of buying through Toyota Nigeria Limited

For prospective buyers, the decision to purchase an SUV should go beyond the vehicle’s appearance, performance and convenience features.

The availability of genuine spare parts, professional maintenance services and manufacturer-backed warranty protection is equally important.

Toyota Nigeria operates through seven accredited dealers: Elizade Nigeria Limited, R.T. Briscoe (Nig.) Plc, Omoregie Motors, Germaine Auto Centre, Kojo Motors, Mandilas Motors and Metropolitan Motors Limited.

According to the company, vehicles purchased through its accredited dealers enjoy a three-year or 100,000-kilometre warranty, whichever comes first.

TNL also explains that its vehicles are selected and supplied with specifications approved for the Nigerian operating environment.

An important component of this approach is the Severe User Package, which includes reinforced suspension, heavy-duty shock absorbers and engine under-guards, among other features designed to help vehicles withstand demanding road and terrain conditions.

This consideration is particularly relevant in Nigeria, where road conditions can vary considerably between urban centres, highways and rural communities.

The company’s accredited dealers also provide access to genuine Toyota spare parts and authorised servicing facilities.

Toyota further states that genuine spare parts purchased through its accredited dealers carry a 12-month or 20,000-kilometre warranty, subject to applicable terms and conditions.

A practical option for Nigerian motorists

For Nigerian buyers considering an SUV, the Toyota RAV4 presents a combination of passenger comfort, flexible luggage accommodation, responsive engine performance and practical everyday features.

Its automatic climate control, steering-mounted audio switches and adaptable rear seating arrangement address important aspects of everyday vehicle ownership.

Combined with Toyota Nigeria’s emphasis on specifications suitable for Nigerian conditions, warranty protection and access to genuine spare parts, the RAV4 offers prospective customers additional considerations beyond the initial purchase.

For individuals and families seeking an SUV that combines everyday practicality with the established Toyota ownership proposition, the RAV4 deserves consideration.

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Nigeria’s Auto Dealers Face New Challenge as After-Sales Service Takes Centre Stage

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Nigeria’s Auto Dealers Face New Challenge as After-Sales Service Takes Centre Stage

Nigeria’s Auto Dealers Face New Challenge as After-Sales Service Takes Centre Stage

Nigeria’s automotive industry may need to rethink the way it competes for customers, with industry stakeholders urged to place greater emphasis on after-sales service, warranty protection and customer satisfaction rather than focusing largely on vehicle prices, designs and technology.

As competition intensifies and new vehicle brands enter the Nigerian market, the ability of distributors and dealers to provide reliable support long after a vehicle has been purchased could become a major factor in determining customer loyalty and market leadership.

For many vehicle owners, the real test of a brand does not end at the showroom. It begins when the vehicle requires routine servicing, develops a fault, needs replacement parts or requires warranty attention.

The quality of the response at such moments can determine whether a customer remains loyal to a brand or begins looking elsewhere.

Against this background, the industry is being challenged to embrace a new form of competition centred on dependable, transparent and accessible after-sales support.

Traditionally, automotive competition has revolved around pricing, vehicle performance, design, technological innovations, fuel efficiency and the introduction of new models. While these factors remain important, they do not necessarily guarantee a satisfactory ownership experience.

For Nigerian motorists, the availability of genuine spare parts, qualified technicians, affordable maintenance, prompt repairs and effective warranty administration can be just as important as the vehicle’s initial purchase price.

This is particularly significant in Nigeria, where vehicles play critical roles in household mobility and business operations. A private car may be indispensable for commuting, school runs and medical appointments, while commercial vehicles are essential to deliveries, logistics and other economic activities.

Consequently, prolonged vehicle downtime arising from poor maintenance support or delays in obtaining replacement parts can impose significant financial and operational costs on owners.

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Beyond selling vehicles

The growing emphasis on after-sales service reflects a broader understanding that selling a vehicle should mark the beginning, rather than the end, of a relationship between an automotive company and its customer.

When customers receive clear information, timely repairs and reliable technical support, they are more likely to develop confidence in the brand and return for future purchases.

Conversely, poorly explained warranty conditions, inadequate service facilities, delays in repairs and difficulties accessing genuine parts can undermine customer confidence, regardless of how attractive or technologically advanced a vehicle may be.

The industry is therefore being encouraged to compete through stronger technical capacity, effective spare parts management, transparent warranty arrangements, efficient communication and credible repair processes.

Some automotive distributors are already introducing structured programmes designed to strengthen their ownership support propositions.

One example is Carloha’s CarlohaCare 6-6-7 programme, which combines a six-year warranty, six years of free servicing and a seven-day repair promise, subject to applicable terms and conditions.

The company has also introduced CarlohaCare Rescue, extending its customer support proposition through roadside assistance under specified service arrangements.

Such initiatives provide examples of how automotive companies can package after-sales services into identifiable commitments that customers can evaluate before making purchasing decisions.

However, the emergence of such programmes should also encourage healthy competition, independent scrutiny and comparisons across the industry.

Other distributors, including established automotive companies and emerging vehicle brands, should equally be encouraged to strengthen their service networks, improve spare parts availability and introduce more effective customer complaint-resolution mechanisms.

Ultimately, customers stand to benefit when companies compete to deliver better ownership experiences rather than relying exclusively on aggressive sales campaigns.

The need for accountability

However, industry observers caution that attractive after-sales promises must be backed by operational capacity and measurable results.

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A warranty programme, for instance, is only as valuable as the company’s willingness and ability to honour its obligations when customers encounter problems.

Automotive distributors should therefore provide clear written explanations of warranty coverage, exclusions, servicing schedules and the conditions attached to special customer support programmes.

Their performance should also be assessed using measurable indicators, including repair turnaround time, spare parts availability, technical competence, customer complaint resolution and the effectiveness of warranty administration.

Customers should have accessible channels through which they can report complaints, obtain updates on repairs and seek clarification when service commitments are not met.

The media also has an important role to play in promoting accountability and raising the standard of industry conversations.

The Nigeria Auto Journalists Association (NAJA), for instance, can contribute through independent editorial coverage, industry analysis, interviews and platforms that bring automotive companies and consumers together to examine the quality of vehicle ownership in Nigeria.

Its responsibility should be to encourage informed public debate, investigate industry claims and highlight measurable improvements in customer service, rather than endorse promotional claims that have not been independently established.

Buyers must ask the right questions

Beyond the responsibilities of distributors, consumers also have a role in changing the dynamics of competition in the automotive market.

For too long, vehicle purchase decisions have often been influenced primarily by acquisition costs, appearance, brand reputation and technical specifications.

While these considerations remain legitimate, prospective buyers need to pay greater attention to what happens after they drive their vehicles out of the showroom.

Questions about warranty coverage, servicing costs, the availability of genuine replacement parts, roadside assistance and access to authorised service centres should form part of every serious vehicle purchase decision.

Corporate organisations and fleet operators should go further by incorporating after-sales capacity, maintenance costs and expected vehicle downtime into their procurement decisions.

Such an approach would compel automotive distributors to recognise that customers are not simply purchasing vehicles; they are investing in years of mobility, convenience and operational reliability.

A new measure of industry leadership

As Nigeria’s automotive market evolves, the companies best positioned to earn lasting customer loyalty may not necessarily be those selling the cheapest vehicles or introducing the most models.

Increasingly, the decisive advantage could lie with distributors that demonstrate a consistent ability to support customers throughout the ownership journey.

The industry must therefore move beyond measuring success primarily through sales volumes, market share and showroom performance.

It must also pay attention to customer satisfaction, service delivery, warranty compliance and the ability to minimise vehicle downtime.

The ultimate objective should not simply be to sell more vehicles, but to give buyers confidence that their investments will receive the technical attention, maintenance support and customer care required throughout their useful lives.

For Nigeria’s automotive industry, the next big competition may not be about who sells the most attractive vehicle or offers the lowest price.

It may ultimately be about who takes better care of the customer after the sale.

 

Nigeria’s Auto Dealers Face New Challenge as After-Sales Service Takes Centre Stage

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