Business
Stopping fuel importation will create monopoly, sustain fuel crisis – Marketers
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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Auto
Policy Bottlenecks Threaten Nigeria’s Clean Mobility Drive, LCCI Warns
Policy Bottlenecks Threaten Nigeria’s Clean Mobility Drive, LCCI Warns
The Chairman of the Auto and Allied Sector Group of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Femi Eguahide, has warned that policy inconsistencies, regulatory bottlenecks and weak coordination between the public and private sectors could derail Nigeria’s clean mobility ambitions, urging the Federal Government to deepen collaboration with industry stakeholders to accelerate the transition to Compressed Natural Gas (CNG) and Electric Vehicles (EVs).
Speaking at the 3rd Nigeria Auto Industry Summit in Lagos on Thursday, Eguahide said the success of the Federal Government’s clean mobility agenda would depend on sustained stakeholder collaboration, policy consistency and the removal of operational challenges slowing investment and implementation.
The summit, organised by the Nigeria Auto Journalists Association (NAJA) under the theme, “Nigeria’s Clean Mobility Future: The EV and CNG Journey Under the Bola Tinubu Administration,” brought together policymakers, regulators, automobile manufacturers, financiers, transport operators, researchers, safety agencies and development partners to chart a roadmap for accelerating Nigeria’s transition to cleaner transportation.
Eguahide acknowledged the Federal Government’s commitment to alternative energy solutions through the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), but stressed that translating policy into tangible results would require stronger coordination between government institutions and private investors.
According to him, the automotive industry remains a critical driver of industrialisation, job creation and economic growth, making it imperative for government agencies to work closely with manufacturers, assemblers, financiers and technology providers to create a more predictable and investment-friendly operating environment.
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He said effective policy implementation must be backed by continuous stakeholder engagement capable of resolving challenges surrounding vehicle conversion, local manufacturing, infrastructure development, financing and technology deployment.
Eguahide maintained that Nigeria possesses enormous potential to build a globally competitive clean mobility ecosystem, but cautioned that fragmented policies and institutional inefficiencies could slow the country’s progress if left unresolved.
He therefore urged government agencies to deepen engagement with the organised private sector to develop practical solutions that would accelerate the rollout of CNG refuelling infrastructure, EV charging networks and local automotive production.
Earlier, the Federal Government reaffirmed its commitment to expanding Nigeria’s clean mobility ecosystem through increased investment in infrastructure, local manufacturing and strategic partnerships.
Speaking on behalf of the Executive Chairman and Chief Executive Officer of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), Barrister Ismaeel Ahmed, the Initiative’s Chief Compliance Officer, Engr. Zayyanu Tamberi Yabo, said the programme had evolved into a key pillar of President Bola Tinubu’s transport and energy reform agenda.
According to Ahmed, the Presidential Initiative was established not merely to promote alternative fuels but to build an integrated ecosystem covering infrastructure development, investment, vehicle conversion, local manufacturing, technical capacity building and consumer confidence.
“Our approach from the beginning has been to build the foundations of a sustainable industry rather than pursue isolated interventions,” he said.
He disclosed that certified CNG conversion centres had expanded significantly across the country over the past two years, while new refuelling stations were being developed through public and private sector investments.
Ahmed added that vehicle conversions continue to rise as commercial transport operators and private motorists increasingly embrace CNG because of its lower operating costs.
He also highlighted partnerships with financial institutions, energy companies and automobile manufacturers aimed at improving access to financing and accelerating the adoption of clean mobility technologies.
Despite the progress, he identified infrastructure expansion, consumer financing, local manufacturing capacity, technical training, research, innovation and standardisation as priority areas requiring sustained attention.
In his welcome address, NAJA Chairman Theodore Opara described the summit as a strategic platform for shaping the future of Nigeria’s automotive industry.
He said reforms introduced by the Tinubu administration had created fresh momentum for CNG, electric vehicles and local automotive manufacturing, adding that stronger collaboration among government, industry players and the media would be critical to sustaining the gains.
Also speaking, the Director-General of the Standards Organisation of Nigeria (SON), Dr. Ifeanyi Chukwunonso Okeke, represented by Engr. Olalekan Omoniyi, said strict compliance with internationally recognised standards would determine the success of Nigeria’s transition to EVs and CNG-powered transportation.
He disclosed that SON had developed more than 80 Nigerian Industrial Standards for CNG vehicles and equipment, as well as 87 additional standards and the National Nigeria Guideline (NNG 1214:2024) for CNG vehicle conversions.
The SON boss warned against the proliferation of uncertified conversion centres and substandard equipment, urging mandatory certification for imported and locally assembled EVs, CNG vehicles, conversion kits and charging infrastructure.
Policy Bottlenecks Threaten Nigeria’s Clean Mobility Drive, LCCI Warns
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Auto
FRSC Pledges Robust Safety Measures as Nigeria Accelerates EV, CNG Mobility Drive
FRSC Pledges Robust Safety Measures as Nigeria Accelerates EV, CNG Mobility Drive
The Federal Road Safety Corps (FRSC) has declared that road safety will remain at the heart of Nigeria’s transition to Electric Vehicles (EVs) and Compressed Natural Gas (CNG)-powered transportation, pledging to strengthen regulations, enforcement and stakeholder collaboration to ensure the shift to cleaner mobility does not compromise public safety.
The Corps Marshal of ghe FRSC, Shehu Mohammed, made the declaration while delivering a keynote address at the 3rd Nigeria Auto Industry Summit organised by the Nigeria Auto Journalists Association (NAJA) in Lagos.
The summit, themed “Nigeria’s Clean Mobility Future: The EV and CNG Journey Under the Bola Tinubu Administration,” brought together government officials, regulators, manufacturers, energy companies and other industry stakeholders to chart the future of sustainable transportation in Nigeria.
Mohammed said the growing adoption of EVs and CNG-powered vehicles presents significant opportunities for cleaner transportation, lower operating costs and improved energy security, but warned that these benefits can only be fully realised through robust safety regulations, effective enforcement and continuous collaboration among stakeholders.
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He noted that as alternative-fuel vehicles become more prevalent on Nigerian roads, regulatory institutions must evolve to address emerging technologies through specialised training, updated operational guidelines and stronger enforcement frameworks.
According to him, the FRSC has already begun positioning itself for the transition by strengthening safety regulations, engaging key stakeholders and developing operational frameworks specifically designed for EVs and CNG-powered vehicles.
The Corps Marshal stressed that Nigeria’s clean mobility agenda should not only focus on reducing carbon emissions but also on improving road safety, raising vehicle standards and building public confidence in emerging transport technologies.
He added that achieving a safe and sustainable transition would require the active participation of road users, transport operators, vehicle manufacturers, conversion centres, regulators and other critical stakeholders.
Mohammed reaffirmed the FRSC‘s commitment to working closely with government agencies, industry players and development partners to ensure that Nigeria’s journey towards cleaner transportation delivers lasting safety, environmental and economic benefits for the country.
FRSC Pledges Robust Safety Measures as Nigeria Accelerates EV, CNG Mobility Drive
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Auto
Pi-CNG boss: Clean mobility will cut transport cost, create jobs, power Nigeria’s economic growth
Pi-CNG boss: Clean mobility will cut transport cost, create jobs, power Nigeria’s economic growth
The Federal Government has declared that Nigeria’s transition to compressed natural gas (CNG) and electric vehicles (EVs) is no longer an environmental ambition but a critical economic strategy to slash transportation costs, strengthen energy security, create jobs and unlock new investments across the automotive value chain.
Making the declaration at the 3rd Nigeria Auto Industry Summit (NAISU) organised by the Nigeria Auto Journalists Association (NAJA) in Lagos, the Executive Chairman and Chief Executive Officer of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), Barrister Ismaeel Ahmed, said clean mobility had become a central pillar of President Bola Ahmed Tinubu’s transport and energy reforms.
Delivering a keynote address titled, “Nigeria’s Clean Mobility Future: The EV and CNG Journey Under the Bola Tinubu Administration,” Ahmed said the Presidential Initiative was established to coordinate Nigeria’s transition to cleaner transportation by building a sustainable ecosystem for CNG and electric mobility.
He explained that the Initiative’s mandate extended beyond promoting alternative fuels to attracting investments, expanding refuelling and charging infrastructure, supporting vehicle conversion, strengthening local manufacturing, developing technical skills and boosting consumer confidence.
According to him, the programme was conceived following the removal of fuel subsidy to provide Nigerians with a practical and affordable transport alternative by leveraging the country’s abundant natural gas resources.
“Our focus from the beginning has been to build the foundation of a sustainable industry rather than pursue isolated interventions,” Ahmed said, noting that Pi-CNG & EV has worked closely with regulators, investors, vehicle manufacturers, conversion firms, financial institutions, development partners, transport unions and state governments.
Reviewing the Initiative’s achievements over the past two years, he said Nigeria’s CNG ecosystem has expanded rapidly, with more certified conversion centres established across the country and refuelling infrastructure growing through public and private sector investments.
He added that vehicle conversions have continued to rise as commercial transport operators and private motorists increasingly embrace the lower operating costs of CNG, while thousands of technicians have been trained to ensure safe and professional conversion services nationwide.
Ahmed also disclosed that strategic partnerships with financial institutions, energy companies, vehicle manufacturers and state governments are helping to improve access to financing, stimulate infrastructure development and accelerate the adoption of clean mobility solutions.
To strengthen safety and regulatory compliance, he announced the introduction of the Nigeria Gas Vehicle Monitoring System, which he said would enhance transparency, improve regulatory oversight and build public confidence in the conversion industry.
While acknowledging the remarkable progress recorded in CNG adoption, Ahmed stressed that the Initiative remains equally committed to advancing electric mobility, saying Nigeria’s long-term transport future would be powered by multiple clean-energy technologies.
He revealed that government is engaging manufacturers, investors and development partners on electric vehicle deployment, charging infrastructure, local assembly and policy reforms aimed at accelerating market growth.
Despite the progress, Ahmed identified infrastructure expansion, consumer financing, local manufacturing, technical capacity development, research, innovation and standardisation as key areas requiring sustained investment and collaboration.
He urged government agencies, investors, manufacturers, transport operators, financial institutions, development partners and the media to work together to overcome these challenges and build a sustainable clean mobility ecosystem.
Describing the media as a strategic partner, Ahmed called on members of the Nigeria Auto Journalists Association to intensify public education on the economic, environmental and technological benefits of clean mobility.
“The transition to clean mobility is as much an information challenge as it is an infrastructure challenge. Public understanding influences public acceptance, while market confidence is built on accurate, timely and responsible information,” he said.
He pledged deeper engagement with journalists through regular technical briefings, industry dialogues and improved access to credible data to combat misinformation and promote informed public discourse.
Ahmed said Pi-CNG & EV would continue expanding CNG infrastructure nationwide, strengthen the regulatory framework, support local manufacturing and vehicle conversion capacity, deepen financing partnerships and collaborate with stakeholders to build a commercially viable clean mobility industry.
According to him, the true measure of the Initiative’s success will not be the number of conversion centres or refuelling stations established, but its ability to reduce transport costs, improve energy security, generate employment, stimulate industrial growth and improve the quality of life of Nigerians.
He commended NAJA for providing a platform for robust industry dialogue, saying stronger collaboration among government, industry players and the media would be essential to accelerating Nigeria’s clean mobility transition.
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