A Federal High Court in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, to continue granting and renewing petroleum products import licences, reopening the debate over fuel imports as domestic refining capacity expands.
The ruling, which affects Matrix Energy, A.A. Rano Nigeria Limited and AYM Shafa Limited, comes amid a separate suit by Dangote Petroleum Refinery at the Federal High Court in Lagos challenging the continued issuance and renewal of petrol import licences to the Nigerian National Petroleum Company Limited and other marketers.
The development has drawn mixed reactions from petroleum marketers, refinery operators and energy experts over the balance between competition, consumer prices and the protection of growing domestic refining capacity.
The Federal High Court in Abuja, presided over by Justice Inyang Ekwo, ruled that the NMDPRA’s refusal to issue or renew the import licences of the three companies was in “direct non-compliance” with the Petroleum Industry Act, PIA, 2021.
Justice Ekwo held that the regulator acted beyond the provisions of the law in handling the companies’ applications and declared that any exercise relating to their import licences that failed to comply with the PIA and other relevant laws would be “null and void”.
The three companies had approached the court seeking declarations that the PIA does not prohibit the importation of petroleum products or prevent the NMDPRA from granting or renewing licences to eligible importers.
They also argued that the regulator has a statutory responsibility to promote competition in the midstream and downstream petroleum sectors.
Justice Ekwo agreed with the plaintiffs, holding that relevant provisions of the PIA, read alongside Section 72 of the Federal Competition and Consumer Protection Act, require the NMDPRA to promote competition and prevent abuse of dominant positions and restrictive business practices.
The court consequently declared that the companies are entitled to the issuance, extension and renewal of petroleum products import licences, provided they meet all applicable statutory and regulatory requirements.
The court specifically ordered the NMDPRA to “continue to grant, issue, extend, renew, or reissue” licences, permits and authorizations for midstream and downstream petroleum operations, particularly those relating to the importation of petroleum products.
In an affidavit, the Executive Director of A.A. Rano Nigeria Limited, Sabiu Saidu Mahuta, alleged that the NMDPRA had granted or renewed the companies’ import licences only sporadically since July 2025.
The companies argued that the situation was contributing to market dominance by local refineries. They also told the court that they had collectively invested more than $20bn in infrastructure, logistics and retail networks.
Their counsel, Raji Ahmed, SAN, argued that allowing both imported and locally refined products into the market would promote competition, prevent monopoly and price-fixing, and improve supply.
The NMDPRA has also approved 830,000 metric tonnes of petrol imports for the fourth quarter of 2026, with Matrix Energy, A.A. Rano and AYM Shafa among six companies issued permits.
According to data cited in the report, import licences have facilitated an average of 95.7 million litres of petrol imports daily, totalling 23.2 billion litres between January and August 2026.
The Abuja ruling comes as Dangote Petroleum Refinery pursues a separate case at the Federal High Court in Lagos over the issuance of petroleum product import licences.
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The Lagos court has fixed October 7 to hear the suit, filed by the Dangote refinery against the Federal Government over import licences issued to NNPC and several petroleum marketers.
In suit No. FHC/L/CS/857/2026, Dangote is seeking to nullify import licences allegedly issued or renewed around May 6, 2026, in favour of NNPC, NIPCO, A.A. Rano, Matrix, Shafa, Pinnacle and Bono.
The refinery argues that the licences were issued in violation of an earlier court order made on April 29, 2026, directing the parties to maintain the status quo pending the determination of the case. The two cases are before courts of coordinate jurisdiction, although Dangote is not a party to the Abuja case.
The Petroleum Products Retail Outlets Owners Association of Nigeria welcomed the Abuja judgement, with its National President, Billy Gillis-Harry, describing the ruling as a victory for consumers. Gillis-Harry said allowing multiple supply sources would help improve the availability and affordability of petrol.
He called for import licences to remain available to all companies with the capacity to import and supply products, rather than being restricted to the three companies involved in the Abuja case.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, IPMAN, Chinedu Ukadike, also said the judgement should be respected.
Ukadike said marketers would continue to buy products from whichever source offers competitive prices, whether domestic refineries or importers.
“If Dangote is producing and it’s cheap, we will look at it and buy from them as marketers. On the other hand, if products from importers are cheaper, we would also buy from them,” he said.
He added that the priority for marketers was to obtain products at competitive prices and ensure steady supply to consumers.
IPMAN Vice President Hammed Fashola said the legal disputes were necessary to clarify the interpretation of the PIA, urging stakeholders to ensure that the litigation does not disrupt fuel availability.
“If there is any dispute, I think the right place to go is the court,” Fashola said, adding that parties could also pursue an amicable resolution while awaiting the outcome of the cases.
He said the Appeal Court and Supreme Court remained available to resolve any conflicting interpretations from the lower courts.
The legal dispute has also renewed calls for a review of the Petroleum Industry Act to reflect the expansion of Nigeria’s domestic refining capacity.
Energy sector expert Dan Kunle said the PIA’s provisions on petroleum product imports were no longer aligned with the country’s current refining landscape.
Kunle said the law was enacted before the emergence of large-scale private refineries such as the Dangote refinery and argued that the Federal Government should consider amending the legislation.
He proposed that petroleum imports should be permitted primarily when there are domestic supply shortfalls or strategic stock requirements, rather than being treated as a permanent feature of the market.
However, economist Mustafa Chike-Obi argued that domestic refineries should not receive indefinite protection from import competition.
Speaking on the Policy without Politics podcast, Chike-Obi said any protection granted to local refineries should be time-bound, adding that producers should eventually compete on price and quality.
The Crude Oil Refinery-Owners Association of Nigeria, CORAN, has called for a gradual reduction in petrol imports, while urging the Federal Government to address crude supply challenges facing domestic refineries.
CORAN Chairman Momoh Oyarekhua said some local refineries continued to struggle to secure crude oil on commercially viable terms despite Nigeria’s abundant crude resources.
He called for the full implementation of the naira-for-crude policy and stronger enforcement of the Domestic Crude Supply Obligation under Section 109 of the PIA.
Oyarekhua also proposed a domestic crude pricing framework that takes into account crude quality, delivery points, transportation costs and other factors affecting local refiners.
He said imports should progressively be restricted to objectively determined domestic supply shortfalls and strategic stock requirements.
“Refining for value means more than producing fuel. It means retaining foreign exchange, creating jobs, developing local expertise, supporting petrochemicals and manufacturing, and capturing greater economic value within Nigeria,” he said.
CORAN also called for a dedicated financing framework to support the construction of new refineries and expansion of existing facilities.
The competing positions reflect a broader debate over how Nigeria should balance open-market competition and consumer access to fuel with efforts to maximize the benefits of its expanding domestic refining capacity.
PUNCH
