Major Fuel Shipments Arrive at Nigerian Ports Amid Legal Dispute
Six vessels carrying approximately 212.7 million litres of Premium Motor Spirit (PMS) and Automotive Gas Oil (diesel), valued at nearly N279bn, are arriving at Nigerian ports this week. These shipments represent a significant influx of refined petroleum products into the country, despite ongoing legal challenges involving the Dangote Petroleum Refinery.
The Dangote refinery is currently awaiting a decision from the Lagos Federal High Court regarding its request to halt the importation of refined petroleum products. This move has been contested by the Nigerian National Petroleum Company Limited (NNPC) and other oil marketers. The court case highlights the growing tension between domestic refining efforts and the continued reliance on imported fuels.
According to the daily shipping position report from the Nigerian Ports Authority, the six vessels are berthing at various terminals across the Apapa and Tincan port complexes in Lagos, as well as the North West Petroleum and Gas terminal in Calabar. Discharge operations are expected to continue through June 19.
Of the six vessels, five are loaded with PMS, while one carries diesel. Together, they represent a combined import tonnage of 157,000 metric tonnes: 132,000 metric tonnes of PMS and 25,000 metric tonnes of AGO. At the Dangote refinery’s latest gantry price of N1,250 per litre for PMS, the approximately 183.3 million litres of petrol aboard the five vessels are valued at roughly N229.1bn. The 29.4 million litres of diesel, priced at N1,700 per litre at the Dangote gantry, add roughly N50bn, bringing the total cargo value to approximately N279.1bn.
Considering the current exchange rate of an average of N1,360 to the dollar, the total shipment is worth about $205m, highlighting the impact of Nigeria’s fluctuating foreign exchange rate on fuel imports.
Key Vessels and Their Deliveries
The largest single fuel delivery belongs to the MT Mosunmola (IMO: 9160932), a 144-metre tanker managed by Intership, which is carrying 45,000 metric tonnes of PMS destined for the Bulk Oil Plant in Apapa. The vessel is expected to berth on Friday, June 12.
Close behind is the MT ST Ilhaam (IMO: 9278480), carrying 37,000 metric tonnes of PMS for discharge at the New Oil Jetty, managed by Rehdor Logistics Solutions. It has the furthest estimated time of arrival among the six vessels and is expected to arrive on June 19.
The MT Leste (IMO: 9285720), the only diesel carrier in the group, arrived on Tuesday, June 9, berthing at the KLT Phase 3A terminal at Tincan under the management of Lighthouse Maritime Agency Nigeria Limited, with 25,000 metric tonnes of AGO aboard.
Also, the MT Bora (IMO: 9276004), heading to KLT Phase 3A at Tincan and managed by Peak Shipping Services Limited, arrived on June 10 with 17,000 metric tonnes of PMS. Similarly, the MT Stellar (IMO: 9288928), managed by WAPS, is due at the North West Petroleum and Gas terminal in Calabar on June 12 with a further 17,000 metric tonnes of PMS.
The MT Lausu (IMO: 9241827), carrying 16,000 metric tonnes of PMS and managed by White Waters Agency Nigeria Limited, arrived as far back as June 3 but remains at anchorage awaiting berthing at Tincan Port in Lagos.
Legal Challenges and Market Implications
The arrival of these sizeable fuel imports comes amid a legal dispute involving the Dangote refinery. The refinery, which has positioned itself as Nigeria’s primary domestic source of PMS and AGO since it began fuel sales in 2024, has taken legal action against the Attorney-General of the Federation and the NNPC. The refinery seeks to stop the Nigerian Midstream and Downstream Petroleum Regulatory Authority from issuing import licences to petroleum marketers, arguing that this practice undermines its domestic refining efforts and investments.
Dangote has accused certain oil marketing companies and regulatory officials of frustrating the refinery’s local operations by maintaining an import-dependent supply chain. Despite this, the refinery has reduced its PMS gantry price to N1,250 per litre due to the Middle East crisis, aiming to compete with imported products and drive depot prices downward.
Recently, the Dangote refinery increased its crude oil processing capacity to 700,000 barrels per day, surpassing its nameplate capacity of 650,000 bpd. This milestone underscores the facility’s engineering capability and operational efficiency.
The refinery’s expansion plans include more than doubling its capacity to 1.4 million bpd within 30 months, positioning it as potentially the largest refinery globally. This growth trajectory aims to boost Nigeria’s energy self-sufficiency, reduce dependence on imported refined products, and strengthen its role as a regional export hub.
Opposition from NNPC and Industry Players
The NNPC has opposed the Dangote refinery’s legal action, arguing that the refinery’s products are sold at “significantly high and fluctuating market prices.” The national oil company warned that granting the refinery’s requests could lead to monopoly control of Nigeria’s downstream petroleum sector.
Marketers under the Petroleum Products Retail Outlet Owners Association of Nigeria also supported the NNPC, emphasizing the need for competition in the petroleum sector to prevent price exploitation. They argued that multiple sources would bring about a reduction in fuel prices.
In its counter-affidavit, the NNPC requested the court to dismiss or strike out the suit, citing incompetence, prematurity, lack of cause of action, and abuse of court process. The outcome of this legal battle will have significant implications for Nigeria’s petroleum market and the future of domestic refining efforts.
