Debate over Nigeria’s petroleum-product imports has intensified after the Federal High Court in Abuja ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority to continue granting import licences to Matrix Energy, AA Rano and AYM Shafa.
Justice Inyang Ekwo made the order in a judgment on Monday, holding that the regulator’s refusal to issue licences to the three marketers amounted to “direct non-compliance” with the Petroleum Industry Act.
The decision comes as operators in Nigeria’s upstream and downstream petroleum sectors increasingly argue against continued petrol imports amid expanding domestic refining capacity. Pasted markdown
Court Says PIA Does Not Ban Imports
The dispute centred on whether Nigeria’s petroleum legislation prevents eligible companies from importing petroleum products.
Lead counsel to the plaintiffs, Dr Ahmed Raji, SAN, alongside Chris Ekemezie and Usman Mohammed Oloje, sought declarations concerning the import provisions of the Petroleum Industry Act 2021.
Among the reliefs sought was a declaration that the PIA does not outlaw or prohibit petroleum-product imports and does not prevent NMDPRA from granting or renewing licences for eligible importers.
Justice Ekwo said the dispute arose from the regulator’s refusal to issue and renew petroleum-product import licences for the three plaintiffs. Pasted markdown
Domestic Refining Complicates Debate
The judgment comes as Nigeria attempts to shift towards greater domestic refining.
The Federal Government has separately said the country’s strategic direction is to progressively move away from primarily exporting crude while importing refined products.
Petroleum-sector operators supporting domestic refining argue that local plants should be given room to supply more of the country’s fuel requirements.
However, the court judgment addresses the legal framework governing imports rather than deciding the broader economic debate over how much fuel Nigeria should source internationally.
The issue therefore sits at the intersection of competition, energy security, domestic industrial development and consumer supply.
The next phase will depend on NMDPRA’s implementation of the judgment and the evolving capacity of Nigerian refineries to meet domestic demand.
