A Federal High Court in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority to continue granting and renewing petroleum products import licences. The ruling has opened a fresh battle over fuel imports as domestic refining capacity expands. The court's decision has put the Abuja judgment alongside a pending suit by Dangote Petroleum Refinery at the Federal High Court in Lagos.
The Abuja ruling was in favour of three oil marketers, Matrix Energy, A.A. Rano Nigeria Limited, and AYM Shafa Limited, who had approached the court seeking declarations that the Petroleum Industry Act did not prohibit the importation of petroleum products into Nigeria. The court held that the regulator's refusal to issue or renew the import licences was in "direct non-compliance" with the Petroleum Industry Act.
The Petroleum Industry Act imposes an obligation on the regulator to promote a competitive market and prevent abuse of dominant positions and restrictive business practices. The court declared that the three companies were entitled to the issuance, extension or renewal of petroleum products import licences upon fulfilling the conditions stipulated by the regulator. The order was subject to the companies fulfilling all applicable statutory and regulatory preconditions.
The plaintiffs had alleged that the regulator had granted or renewed their import licences only sporadically since July 2025, contributing to market dominance and monopolisation of the downstream petroleum sector by local refineries. The companies also told the court that they had collectively invested more than $20bn in infrastructure, logistics and retail networks for their petroleum products businesses.
The Abuja ruling has sparked a mixed reaction, with petroleum marketers welcoming the judgment and calling for continued access to import licences. The National President of PETROAN, Billy Gillis-Harry, described the ruling as a victory for Nigerians, arguing that diversifying supply sources would help address concerns over the availability and cost of petrol.
However, the development has also renewed debate over whether domestic refineries should be protected from import competition and whether the Petroleum Industry Act provides an adequate framework for the changing market. The Dangote refinery has a pending suit praying the court to stop the regulator from issuing import licences to the Nigerian National Petroleum Company Limited and other marketers.
The regulator recently 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. The Abuja ruling could complicate the refinery's legal challenge, particularly as it was not a respondent in the Abuja suit and may therefore be unable to appeal the judgment directly.
Key points
- The Nigerian court ruling has sparked a fresh battle over fuel imports as domestic refining capacity expands.
- The Petroleum Industry Act imposes an obligation on the regulator to promote a competitive market and prevent abuse of dominant positions and restrictive business practices.
- The Abuja ruling has sparked a mixed reaction, with petroleum marketers welcoming the judgment and calling for continued access to import licences.
