A Federal High Court in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue granting and renewing petroleum product import licences, setting the stage for a fresh legal and regulatory battle as domestic refining capacity expands.
Justice Inyang Ekwo directed the regulator to continue issuing, extending, renewing or reissuing import licences to Matrix Energy, A.A. Rano Nigeria Limited and AYM Shafa Limited, subject to the companies meeting all statutory and regulatory requirements.
The judge held that the NMDPRA’s refusal to issue or renew the companies’ licences was inconsistent with provisions of the Petroleum Industry Act, 2021.
The ruling comes amid a separate suit filed by Dangote Petroleum Refinery at the Federal High Court in Lagos, challenging the continued issuance and renewal of petroleum product import licences to the Nigerian National Petroleum Company Limited and other marketers.
The three oil marketers had argued that the PIA did not prohibit petroleum product imports and that the NMDPRA was required to promote competition in the midstream and downstream petroleum sectors.
Justice Ekwo agreed, holding that relevant provisions of the PIA, alongside Section 72 of the Federal Competition and Consumer Protection Act, require the regulator to promote competition and prevent restrictive business practices.
The companies had also alleged that the regulator had issued or renewed their import licences only sporadically since July 2025, which they claimed was contributing to market dominance in the downstream sector.
Their counsel, Raji Ahmed, SAN, argued that allowing both imports and local production would promote competition and prevent monopoly and price-fixing.
Meanwhile, Dangote Refinery is seeking to nullify import licences allegedly issued or renewed around May 6, 2026, in favour of NNPC and several marketers, including NIPCO, A.A. Rano, Matrix, Shafa, Pinnacle and Bono.
The refinery has argued that the licences were issued in breach of an earlier April 29 court order directing parties to maintain the status quo pending determination of its suit.
The Federal High Court in Lagos has fixed October 7 for hearing in the case.
The latest development has drawn reactions from petroleum marketers and other industry stakeholders, with the Petroleum Products Retail Outlets Owners Association of Nigeria and the Independent Petroleum Marketers Association of Nigeria backing continued access to import licences.
PETROAN National President, Billy Gillis-Harry, said allowing multiple sources of supply would help address fuel availability and affordability.
He called for import licences to be made available to other companies capable of importing and supplying petroleum products, rather than limiting them to the three companies involved in the Abuja case.
IPMAN National Publicity Secretary, Chinedu Ukadike, also said marketers would continue to buy products from suppliers offering competitive prices.
Another IPMAN official, Hammed Fashola, said the ongoing cases were necessary to clarify the interpretation of the PIA, but urged all parties to ensure that the legal disputes did not affect the availability and distribution of petroleum products.
The controversy has also revived debate over the future of fuel imports as domestic refining capacity increases.
Energy sector expert Dan Kunle called for an amendment of the PIA, arguing that its provisions on petroleum product imports were made before the emergence of large-scale private refineries such as the Dangote refinery.
He said imports should be permitted based on objectively established supply gaps or strategic needs rather than as a permanent feature of the market.
The Crude Oil Refinery-Owners Association of Nigeria has similarly called for a gradual reduction in petrol imports, citing difficulties faced by some domestic refineries in securing crude oil on commercially viable terms.
CORAN Chairman, Momoh Oyarekhua, urged the Federal Government to strengthen the Domestic Crude Supply Obligation under the PIA and ensure transparent access to crude for qualifying domestic refineries.
However, economist Mustafa Chike-Obi argued that domestic refineries should not receive indefinite protection from import competition, saying any protection should have a defined timeframe.
The conflicting positions reflect the wider debate over how Nigeria should balance domestic refining, fuel imports, competition and consumer prices as the country’s petroleum market continues to change.