3 Oil Marketers Secure Court Approval To Continue Petrol Imports in Nigeria
- The Federal High Court in Abuja ruled against the NMDPRA after three major oil marketers challenged the regulator's handling of their import licences
- Justice Inyang Ekwo found that the NMDPRA's conduct put it in direct conflict with the Petroleum Industry Act 2021
- Petroleum dealers pushed back on the ruling, raising concerns about product quality and the role of the Dangote Refinery in domestic supply
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Federal High Court in Abuja has ruled that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) must continue issuing petroleum products import licences to Matrix Energy, A.A. Rano and AYM Shafa.
Justice Inyang Ekwo delivered the judgment on Monday in a suit brought by the three oil marketers against the regulator, finding that the NMDPRA's refusal to issue or renew their import licences put it in “direct non-compliance” with the Petroleum Industry Act (PIA) 2021.
Source: Facebook
What the court decided
Justice Ekwo ruled that nothing in the PIA prohibits petroleum product imports or bars the NMDPRA from licensing eligible importers.
He added that the regulator is legally required to promote competition in the midstream and downstream petroleum sector and prevent the abuse of dominant market positions.
The court held that the three companies are entitled to have their licences issued, extended or renewed once they satisfy the conditions set by the NMDPRA.
The regulator was directed to process all relevant licences, permits and authorisations for the plaintiffs, subject to applicable statutory and regulatory requirements.
Industry pushback on continued imports
The ruling drew opposition from parts of Nigeria's petroleum industry.
Ibrahim Shehu Yahaya, National Secretary of the Petroleum Dealers Association of Nigeria (PEDAN), said that while the PIA provides a legal basis for imports, they should only be permitted where there is clear evidence of a domestic supply shortfall.
Yahaya pointed to the Dangote Refinery's growing output over the past four months as evidence that local supply has improved significantly, Leadership reports.
He also raised concerns about the quality of some imported fuel, alleging that certain marketers may bring in substandard products in pursuit of higher margins.
Yahaya said:
“Dangote Refinery is a top exporter of aviation fuel to Europe, and its petrol quality has been adjudged to have high-quality specifications."
He added:
“As I speak to you, motorists queue at MRS filling stations around the country because they are sure of the quality of its products. The company receives products from Dangote directly.”
Source: Getty Images
Petrol imports already falling
The court's decision comes against a backdrop of sharply declining import volumes.
NMDPRA data showed that petrol imports dropped to about 965.52 million litres in the first quarter of 2026, down from 2.43 billion litres in the same period in 2025.
Over the same period, local refineries supplied about 3.18 billion litres, up from roughly 2 billion litres a year earlier.
The Dangote Refinery has been a major driver of the increase in domestic output, DailyTrust reports.
The court's order does not remove regulatory oversight of imports but confirms that eligible marketers can obtain or renew licences after meeting the requirements set by law and the regulator.
Dangote speaks on new refinery project
Earlier, Legit.ng reported that Aliko Dangote, president and chief executive officer of Dangote Group, has said the company’s planned refinery in Kenya will surpass its Lagos facility in both size and processing capability.
Dangote disclosed this while hosting Kenyan President William Ruto on a tour of the Dangote Petroleum Refinery in Lagos.
The proposed Lamu Refinery is designed to process up to 700,000 barrels of crude oil per day.
Source: Legit.ng
