The Federal High Court in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing and renewing petroleum products import licences for Matrix Energy, AA Rano and AYM Shafa. Justice Inyang Ekwo ruled that the regulator’s refusal breached the Petroleum Industry Act (PIA) 2021.
The PIA was signed in 2021. It liberalised the downstream sector. It allows any eligible importer to obtain a licence. The NMDPRA regulates the market. It must promote competition and prevent abuse of dominant positions. The regulator has faced pressure to protect domestic refining. Dangote Refinery has argued that imports undercut local production. The court has now clarified the legal position. The PIA does not prohibit imports.
Justice Ekwo held that the PIA does not prohibit petroleum product imports. It does not prevent the NMDPRA from licensing eligible importers. He said the regulator must promote competition. It must prevent abuse of dominant positions and restrictive business practices in the midstream and downstream sector. The three companies are entitled to new, extended or renewed import licences once they meet the regulator’s requirements.
The ruling settles one dispute. It does not end the tension. Dangote Refinery has challenged import licences in a separate case. It argues that continued imports force it to export surplus products despite capacity to supply the domestic market. The regulator approved 830,000 tonnes of petrol imports for the fourth quarter of 2026. The allocation matches the third quarter’s approvals. The case returns to court on 7 October.
In a related development, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said crude oil producers offered 182 million barrels to domestic refiners between January and August 2026. That exceeds refiners’ declared requirement of 154.6 million barrels. Oritsemuyiwa Eyesan, NUPRC’s chief executive, said 112 million barrels were transacted. Pricing, payment security, crude grade and delivery timing affected the remaining transactions.
The commission is proposing a domestic crude swap arrangement. It would allow producers near export terminals to exchange supply obligations with producers closer to local refineries. Eyesan said this could reduce logistics costs and delivery times while improving crude availability and compliance. Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), said upstream producers and domestic refiners are participants in the same value chain. They should operate on commercially sustainable terms.
Winners: Matrix Energy, AA Rano and AYM Shafa, who regain licence access. The NMDPRA, which gains legal clarity. Consumers, if competition keeps prices stable. The courts, which assert regulatory limits. Losers: Dangote Refinery, whose market share faces dilution. Domestic refiners, who face import competition. The NMDPRA, whose enforcement discretion is constrained. Taxpayers, if imports weaken the naira.
Bottom Line: The court says the PIA allows imports. The regulator must license eligible importers. Dangote’s separate case continues. The tension between domestic refining and imports remains unresolved.