A Federal High Court in Abuja has delivered a significant ruling in the dispute over petroleum-product import licences, finding that the NMDPRA must exercise its licensing powers within the framework of the Petroleum Industry Act (PIA) 2021.
The judgment, involving Matrix Energy, A.A. Rano and AYM Shafa, addresses whether the PIA prevents petroleum-product imports, the regulator’s obligations in issuing licences and the need to preserve competition in the downstream market. It also comes as a separate legal battle involving Dangote Refinery and fuel import licences remains before the courts.
Here are five key takeaways from the Abuja ruling and what they mean for Nigeria’s petroleum-product import market.
1. Court Affirms Importation Remains Legal
The judgment also addresses a central issue in the wider dispute over imported petrol and growing domestic refining capacity. The court agreed with the marketers’ position that the PIA does not prohibit the importation of petroleum products into Nigeria.
This does not amount to an unrestricted right to import. Companies seeking licences must still meet NMDPRA’s statutory and regulatory requirements. The ruling instead establishes that eligible operators cannot be denied access to the licensing system on the basis that the PIA itself prohibits petroleum-product imports.
2. NMDPRA Licensing Action Violated PIA, Court Rules
Justice Inyang Ekwo of the Federal High Court in Abuja held that the NMDPRA’s refusal to grant, extend or renew petroleum-product import licences for Matrix Energy, A.A. Rano and AYM Shafa amounted to direct non-compliance with the Petroleum Industry Act (PIA) 2021.
The court’s position means that the regulator must exercise its licensing powers within the framework established by the PIA and other applicable laws. The judgment ordered NMDPRA to continue granting, issuing, extending, renewing or reissuing the relevant licences where the applicants satisfy the required statutory and regulatory conditions.
3. Competition Remains Central to Import Licensing
Justice Ekwo linked NMDPRA’s regulatory responsibilities to the need to maintain competition in Nigeria’s midstream and downstream petroleum market. The court relied on relevant provisions of the PIA alongside Section 72 of the Federal Competition and Consumer Protection Act.
The provisions place obligations on the regulator to promote competition and guard against restrictive business practices and abuse of dominant market positions. The court’s reasoning therefore places competition alongside supply regulation as an important consideration in the exercise of NMDPRA’s licensing powers.
4. Marketers Put $20bn Investment Before Court
Matrix Energy, A.A. Rano and AYM Shafa told the court that they had collectively invested more than $20 billion in logistics, infrastructure and retail networks supporting their petroleum-products businesses.
The investment claim formed part of the marketers’ case for continued access to the import-licensing system. They argued that restrictions on eligible importers could affect their businesses and competition in the market.
5. Abuja Ruling Does Not End Dangote Import Challenge
The September 28 Abuja judgment is separate from Dangote Refinery’s ongoing legal challenge to petroleum-product import licences in Lagos.
According to the document, Dangote is challenging import licences granted to NNPC and major marketers and has argued that imports should be allowed when domestic supply is insufficient. The substantive hearing in that case is scheduled for October 7, 2026.
The distinction is significant because the Abuja court has now ruled on the licensing dispute brought by the three marketers, while the Lagos court is yet to determine Dangote’s separate challenge. The two proceedings therefore address related aspects of Nigeria’s petroleum-import and domestic-refining debate without constituting a single judgment on the entire dispute.