Nigeria’s ongoing struggle over who gets to control petrol supply has taken a new twist in the legal arena. The Federal High Court in Abuja has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to keep issuing and renewing import licenses for petroleum products to three major oil marketers.
In a ruling handed down on Monday, Justice Inyang Ekwo, stated that the regulator’s refusal to consistently grant or renew licenses for Matrix Energy, A.A. Rano, and AYM Shafa was at odds with the Petroleum Industry Act (PIA).
However, this ruling doesn’t mean the three companies can import petrol without restrictions. Instead, it mandates that the NMDPRA must process and issue the necessary licenses, permits, and authorisations as long as these companies meet the required statutory and regulatory conditions for petroleum imports.
This distinction could prove significant as Nigeria transitions into a new phase where locally refined petrol is capturing a bigger slice of the market, while imported products still play a role in the country’s supply chain.
What the court decided
The case began in June when three marketers filed a lawsuit, claiming that there were irregularities in how their petroleum-import licenses were issued and renewed.
In his ruling, Justice Ekwo determined that the NMDPRA’s refusal to issue or renew these licenses, given the circumstances presented in court, was a violation of the PIA.
The court also stated that any regulatory actions regarding petroleum-import licenses that go against the PIA and other relevant laws could be deemed null and void.
However, the judge emphasized that the NMDPRA still holds its statutory authority over the petroleum sector.
In simpler terms, this ruling doesn’t strip the regulator of its power to grant, amend, extend, renew, suspend, cancel, or terminate licenses. That power still lies with the NMDPRA.
What the court did reject was the use of that authority outside the established legal framework.
As a result, the three marketers were recognised as entitled to have their licenses issued, extended, or renewed as long as they meet the requirements set by the regulator.
Competition at the heart of the dispute
One of the most significant aspects of the ruling revolves around competition.
Justice Ekwo took a close look at the provisions of the PIA in conjunction with Section 72 of the Federal Competition and Consumer Protection Act. Together, these laws impose responsibilities on the regulatory framework to foster competition within the midstream and downstream petroleum sectors.
The judgment also highlights the importance of preventing the abuse of dominant market positions and curbing restrictive business practices.
This finding elevates the fuel-import dispute beyond just the three companies involved.
At the heart of the matter lies a crucial question about the changing landscape of Nigeria’s petrol market: how can we safeguard competition as domestic refining capacity grows at such a rapid pace?
The marketers contended that the law doesn’t outrightly ban the importation of petroleum products into Nigeria. They argued that qualified operators should still have the ability to import products as long as they meet the conditions set by the regulator.
Additionally, they claimed that allowing both imports and domestic refining to coexist in the same market would create competitive pressure, deter monopolistic behaviors, and potentially enhance the efficiency of the downstream petroleum sector.
Why the marketers went to court
In June, an affidavit from Sabiu Saidu Mahuta, the executive director of A.A. Rano Nigeria Limited, shed some light on the ongoing dispute.
Mahuta informed the court that since July 2025, import licenses for the three companies have been issued, extended, or renewed only sporadically.
The companies argued that this inconsistent pattern has created an unfair competitive landscape in the downstream market.
They also presented the scale of their investments to the court, revealing that together, the three businesses have poured over $20 billion into infrastructure, logistics, and retail networks tied to their petroleum operations.
Their stance is that these significant investments and their current operations shouldn’t be pushed aside by a haphazard licensing system.
Their legal team contended that the PIA does not generally prevent eligible companies from importing petroleum products, and emphasized that the regulator has a legal duty to process licenses in line with the law.
Dangote refinery dispute adds another layer
The ruling from Abuja comes at a time when a separate and crucial legal battle over fuel imports is taking shape, particularly concerning our growing refining sector.
The Dangote Petroleum Refinery is pushing back against the ongoing issuance of petrol-import licenses. In a different legal action, they argue that imports should only be allowed when local refineries can’t sufficiently meet our national needs.
In light of this, the refinery has launched a new lawsuit worth N100 billion against the Attorney-General of the Federation at the Federal High Court in Lagos, challenging the continued granting of import licenses.
Other companies like Matrix Energy, A.A. Rano, and AYM Shafa are also looking to get involved in this case.
It’s important to note that this legal action is distinct from the Abuja ruling.
This distinction is significant because the ruling on Monday didn’t address whether Dangote’s larger claim about the legality of ongoing petrol imports holds water. Instead, the Abuja court focused on whether the NMDPRA had the authority to deny or renew licenses for the three marketers, which is a matter of statutory interpretation.
As a result, Nigeria is currently grappling with two major legal issues: the rights of eligible marketers to secure import licenses and how the growth of domestic refining capacity should influence the government’s decisions on imported petrol.
Nigeria is importing less petrol as local supply rises
The legal showdown is revealing a significant shift in Nigeria’s fuel supply landscape.
Recent data from the NMDPRA indicates that domestic refineries are stepping up their game, supplying a larger share of the petrol that’s hitting the Nigerian market.
In fact, the average daily receipts of Premium Motor Spirit jumped from 45.5 million litres per day in July to 50.5 million litres per day in August, marking an impressive increase of about 11 percent.
However, the most eye-catching change lies in where that petrol is coming from.
Domestic PMS receipts surged from 25.8 million litres per day in July to 35.9 million litres per day in August, which is a remarkable rise of roughly 39 percent.
Meanwhile, imported PMS saw a decline, dropping from 19.7 million litres per day to 14.6 million litres per day—a decrease of about 26 percent.
These numbers clearly show a shifting dynamic: Nigeria is ramping up its own petrol production, while imports, though still present, are making up a smaller slice of the supply pie.
Additionally, crude deliveries to local refineries have also seen an uptick, with receipts climbing from around 585,000 barrels per day in July to 683,000 barrels per day in August—an increase of about 17 percent.
Yet imports are still part of the supply equation
Even with the increase in local production, the NMDPRA is still giving the green light for import permits.
Reports indicate that they approved permits for around 830,000 metric tonnes of petrol for the last quarter of 2026, aiming to avoid any supply shortages during the crucial end-of-year period.
George Ene-Ita, a spokesperson for NMDPRA, confirmed that these permits were indeed approved for the fourth quarter.
Among the companies that received these approvals are Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil, and Bono Energy.
The approvals were said to have been issued on September 18, but details about the specific allocations are still pretty scarce.
This situation highlights the main challenge currently facing Nigeria’s downstream sector.
While the country is ramping up its local petrol production, the regulator is still relying on imports to ensure a stable supply.
What Monday’s judgment changes
The immediate impact of this ruling is that it bolsters the legal standing of eligible importers who are looking to navigate the regulatory licensing process.
However, it doesn’t mean that every company can just start importing petrol, nor does it imply that import levels must stay the same as before.
The NMDPRA still holds the reins when it comes to licensing, and companies need to meet the specific conditions tied to their operations.
What this judgment does is set a clear legal framework for how that discretion can be applied.
For marketers, this ruling lends judicial support to their claim that just because we’re refining domestically doesn’t mean qualified importers should be sidelined.
On the flip side, for domestic refiners, the ongoing litigation is part of a broader effort to define the role of imported petrol in a market where Nigeria’s refining capacity is on the rise.
For the government, the real challenge lies in balancing three sometimes conflicting goals: promoting domestic refining, safeguarding competition, and making sure that Nigerians don’t face fuel shortages.
The bigger issue is no longer simply imports
The debate over fuel imports in Nigeria has shifted from the age-old question of whether the country has enough petrol to a more pressing issue: how should the market be structured as Nigeria ramps up its own fuel production?
If local refineries can meet a larger share of the national demand, we could see a natural decline in imports. However, if imports are still legally accessible to qualified marketers, they could continue to provide an extra layer of supply and competition.
The recent ruling hasn’t settled this ongoing tension.
Instead, it has highlighted the crucial role of regulatory rules that dictate market access.
As the separate legal proceedings involving Dangote unfold and domestic refinery output continues to reshape the supply landscape, the courts may find themselves increasingly involved in decisions that could influence Nigeria’s downstream petroleum industry for years to come.
For now, Justice Ekwo’s message is unmistakable: the shift towards increased domestic refining doesn’t automatically grant the regulator the authority to deny eligible operators licenses outside of the law.
With petrol supply, competition, and refining capacity all undergoing significant transformations at the same time, the struggle over import licenses is likely to remain a key economic and legal narrative in Nigeria’s petroleum sector.
