Court Orders Nigeria to Resume Fuel Import Licensing

The Federal High Court in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to resume issuing and renewing petroleum product import licenses for oil marketers Matrix Energy, AA Rano, and AYM Shafa. Justice Inyang Ekwo ruled that the regulator's refusal to grant these licenses since July 2025 was in direct non-compliance with the Petroleum Industry Act (PIA) and the Federal Competition and Consumer Protection Act.

The court found that the NMDPRA exceeded its legal authority and failed its mandate to promote competition and prevent the abuse of dominant market positions. The plaintiffs, who claim to have invested over $20 billion in infrastructure and logistics, argued that the regulator's sporadic licensing entrenched a monopoly for local refineries.

The ruling drew immediate criticism from domestic industry groups at the 3rd Nigeria Oil Refining Summit in Lagos. The Petroleum Dealers Association of Nigeria and the Crude Oil Refinery-Owners Association of Nigeria argued that continued imports drain foreign exchange and undermine local production. Aliko Dangote, through a representative, called for a level playing field and transparent crude oil access to build a competitive domestic industry. Separately, Dangote Refinery has filed a N100 billion suit against the Attorney-General of the Federation, contending that imports should only be permitted when local refineries cannot meet domestic demand.