Operators Kick Against Fuel Imports As Court Orders NMDPRA To Keep Licensing 3 Marketers
BY OLAKUNLE OLASANMI, Abuja AND CHIKA IZUORA, Lagos Operators in Nigeria’s upstream and downstream petroleum sectors have kicked against the continued importation of petrol following a court order directing the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue granting import licences to three oil marketers. Justice Inyang Ekwo of the Federal High Court […]
BY OLAKUNLE OLASANMI, Abuja AND CHIKA IZUORA, Lagos
Operators in Nigeria’s upstream and downstream petroleum sectors have kicked against the continued importation of petrol following a court order directing the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue granting import licences to three oil marketers.
Justice Inyang Ekwo of the Federal High Court in Abuja ordered the NMDPRA to “continue to grant” petroleum-products import licences to three major oil marketers—Matrix Energy, AA Rano and AYM Shafa—in line with relevant laws.
The court made the order in its judgment on Monday, holding that the NMDPRA’s refusal to issue licences to the three oil marketers was in “direct non-compliance” with the Petroleum Industry Act (PIA).
Among other reliefs, the plaintiffs’ lead counsel, Dr. Ahmed Raji, SAN, who led Chris Ekemezie, Esq., and Usman Mohammed Oloje, Esq., sought a declaration that the Petroleum Industry Act, 2021, does not outlaw or ban the importation of petroleum products into Nigeria, nor does it preclude or prohibit the NMDPRA from granting licences to eligible importers or renewing such licences.
Justice Ekwo said the case was founded on the NMDPRA’s refusal to issue and renew petroleum-products import licences to the plaintiffs.
He found that the actions of the NMDPRA “are in direct non-compliance with the PIA,” adding that the authority was acting beyond the provisions of the law.
He held that the “consequence of non-compliance” with the PIA and relevant laws makes any exercise by the authority in respect of import licences “null and void.”
The judge subsequently held that the plaintiffs had successfully established their claim against the NMDPRA and that the case succeeded on its merits.
Justice Ekwo declared that Sections 31(a), (d) and (l), Section 32(l), (s), (c), (u), (aa), (ii) and (jj), and Section 211 of the Petroleum Industry Act, 2021, read together with Section 72 of the Federal Competition and Consumer Protection Act (FCCPA), obligate, mandate, constrain or compel the NMDPRA to promote a competitive market for midstream and downstream petroleum operations and prevent the abuse of dominant positions and restrictive business practices.
The judge also declared that the plaintiffs, upon fulfilling the conditions stipulated by the defendant for the grant of petroleum-products import licences, are entitled to the issuance, grant, extension or renewal of such licences.
The court further declared:
“A DECLARATION that by the provisions of the Petroleum Industry Act, 2021, particularly, Sections 29(3), 32(a)–(uu) & 33(a)–(w) thereof, the regulation of the midstream and downstream operations of the Petroleum Industry, especially, the power to grant, issue, modify, extend, renew, suspend, cancel, reissue or terminate licences, permits and authorisations for midstream and downstream operations is vested in the Defendant only.”
The judge specifically ordered the NMDPRA to continue to grant, issue, extend, renew or reissue all licences, permits and authorisations for midstream and downstream operations, particularly those relating to the importation of petroleum products, to the plaintiffs upon fulfilment of all statutory and/or regulatory preconditions.
Operators React
Reacting to the ruling, operators said every litre of petrol imported represents lost jobs and a drain on foreign-exchange resources.
National Secretary of the Petroleum Dealers Association of Nigeria (PEDAN), Ibrahim Shehu Yahaya, acknowledged that the PIA provides a legal basis for such imports. He said, however, that interventions of this nature should be allowed only where there is empirical evidence of a domestic supply gap.
Yahaya said Dangote Refinery had increased production over the past four months and sustained domestic supply.
He also warned that some imported petroleum products fail to meet approved standards, alleging that marketers seeking higher profits sometimes bring in substandard fuel.
“Dangote Refinery is a top exporter of aviation fuel to Europe, and its petrol quality has been adjudged to have high-quality specifications. 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,” he said.
Refiners Call for Cut in Imports
Chairman of OPAC Refinery and the Crude Oil Refinery-Owners Association of Nigeria (CORAN), Mr. Momoh Jimah Oyarekhua, said that despite Nigeria’s abundant crude resources, some domestic refineries still struggle to access crude on commercially viable terms.
Fuel imports persist while local refining capacity remains underused, he said.
Oyarekhua said refining for value means more than producing fuel. It means retaining foreign exchange, creating jobs, developing local expertise, supporting petrochemicals and manufacturing, and capturing more economic value within Nigeria.
He called for a progressive reduction in petroleum-product imports, limited to objectively determined domestic shortfalls and strategic-stock requirements.
He also called for: a Refinery Development Financing Framework offering long-tenor financing, guarantees and refinancing for new refineries and expansions; shared petroleum-product infrastructure, including pipelines, depots, storage terminals, jetties and rail evacuation; and strategic petroleum-product reserves to cushion refinery shutdowns, maintenance periods and international supply disruptions;
He also proposed regulatory and fiscal incentives for refinery expansion, particularly conversion units that increase domestic output of PMS, aviation fuel and LPG, and a domestic refining roadmap with national targets for capacity, market share, imports and eventual exports.
Oyarekhua further said Nigeria had taken the difficult decision to reform the petroleum-products market, but that the next stage must be equally bold.
“Nigeria should not continue exporting crude, exporting jobs and importing the same petroleum products at considerable economic cost. Our crude must increasingly power our refineries. Our refineries must increasingly supply our market. And Nigeria must ultimately become a refining hub for Africa,” he said.
Other speakers also opposed petroleum-product imports, citing their economic consequences. They said Nigeria needs more refineries and that the private sector is ready to invest, but capital will flow only where returns are assured.
The comments were made at the 3rd Nigeria Oil Refining Summit (NORS) 2026, organised by CORAN in Lagos on Monday.
CORAN presented a 10-point agenda, led by the full institutionalisation of the Naira-for-Crude policy, with transparent eligibility for all qualifying refineries, including modular plants.
It also called for a domestic crude-pricing template that recognises quality and delivery costs, as well as stronger enforcement of the Domestic Crude Supply Obligation (DCSO) under Section 109 of the PIA.
Other demands include crude swaps and proximity-based supply arrangements, allowing assets located near refineries to supply them directly without transporting crude to distant export terminals.
Dangote Wants Level Playing Field
Alhaji Aliko Dangote, represented by the Chief Economist of Dangote Refinery, Dr. Hassan Mahmood, said his group alone requires 2.1 million barrels of crude oil per day to keep its refineries running.
He said the 650,000 barrels-per-day (bpd) refinery in Nigeria had been scaled up to 700,000 bpd. The group’s new 650,000-bpd refinery outside Nigeria is also being expanded to 700,000 bpd. Together with a 700,000-bpd refinery in East Africa, the group’s total capacity would reach 2.1 million bpd.
Dangote cited Nigerian Upstream Petroleum Regulatory Commission (NUPRC) figures showing that crude and condensate output reached about 1.74 million bpd in June 2026, the highest level in several years.
Crude receipts by domestic refineries rose to about 683,000 bpd in August 2026, he said. NUPRC also reported that about 53.7 million barrels were supplied to domestic refineries in the second quarter, representing 97.4 per cent of the relevant DCSO performance measure.
He said building refineries was only the beginning, adding that the real challenge was building a competitive refining industry.
He called on the government to guarantee reliable and competitive access to crude, ensure that imported and locally refined products compete under equivalent regulatory, quality, tax and commercial conditions, and maintain stable, predictable and transparent policies.
“This is not a call for subsidised crude. It is a call for predictability, transparency and commercially workable arrangements between producers and refiners,” he said.
“We do not seek protection from competition, but competition must take place on a level playing field,” he added.
He said Nigeria could become a refining and petrochemical hub for West Africa, Central Africa and other markets, with refining also supporting the development of petrochemicals, plastics, pharmaceuticals and fertilisers.
“Our objective should not be to replace an import monopoly with a domestic monopoly. Our goal should be to create a competitive Nigerian refining industry with multiple efficient operators,” he said.
“This requires partnership, not protection; competition, not monopoly; regulation, not uncertainty; and a long-term industrial vision, not short-term interventions,” Dangote said.
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About this article
- Length
- 1,374 words · 7 min read
- Published
- September 29, 2026
- Byline
- Kunle Olasanmi
- Source
- Leadership