Dangote Refinery Challenges Fuel Import Licences as Watchdog Backs Appeal

Energy Watchdog has backed Dangote Petroleum Refinery and Petrochemicals’ move to challenge a court ruling that ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to keep issuing fuel import licences to Matrix Energy, AA Rano and AYM Shafa.

The Court of Appeal has not yet granted permission to appeal or overturned the ruling. The group said the dispute is critical to Nigeria’s energy security and local refining investment.

Court order and appeal move

Justice Inyang Ekwo of the Federal High Court delivered the judgment on September 28, 2026, in Suit No. FHC/ABJ/CS/1363/2026. The ruling directed the NMDPRA to continue issuing petroleum product import licences to Matrix Energy, AA Rano and AYM Shafa.

The Federal High Court in Abuja had earlier ruled that the NMDPRA must continue issuing petroleum products import licences to Matrix Energy, A.A. Rano and AYM Shafa. Justice Ekwo found that the regulator’s refusal to issue or renew their import licences put it in “direct non-compliance” with the Petroleum Industry Act (PIA) 2021.

Energy Watchdog, in a statement signed by its representative, Martins Tayo, urged the Court of Appeal to grant Dangote Refinery permission to appeal as an interested party. It described the move as timely given the judgment’s potential implications for the downstream industry.

Watchdog’s position

Energy Watchdog criticised the lower court’s decision, arguing that it conflicted with the objectives of the PIA and could weaken efforts to reduce dependence on imported fuel.

“We completely reject and condemn in totality the judgment of the lower court,” Tayo said.

The organisation maintained that regulatory decisions should reflect Nigeria’s expanding refining capacity and encourage investment in domestic petroleum processing. It argued that sustaining import licences without adequately considering domestic output could weaken investor confidence and slow progress towards greater self-sufficiency.

It said investors who had committed substantial resources to refining projects needed a policy environment that supported the development and utilisation of local capacity. In its view, the PIA should provide a foundation for expanding midstream and downstream infrastructure and reducing the country’s exposure to imported petroleum products.

Import decline and local supply

Energy Watchdog cited a reported decline in petrol imports during the first quarter of 2026, alongside increased supplies from local refineries, particularly the Dangote facility. It presented these developments as evidence that Nigeria was making progress towards meeting more of its fuel requirements through domestic production.

However, the statement did not provide figures detailing the import decline or increases in local supply.

The group urged the appellate court to allow the challenge and ultimately set aside the Federal High Court’s order. The request for permission to appeal remains distinct from a successful appeal. The statement did not indicate that the Court of Appeal had granted the application or overturned the judgment.

Energy Watchdog insisted that the dispute deserved urgent attention, arguing that the outcome could influence future refining investment and Nigeria’s approach to fuel imports. Its position centres on protecting local production, with the group warning that continued import dependence could erode gains from the country’s growing domestic refining capacity.

The case matters for consumers and businesses because it will shape how much fuel Nigeria imports and how much is refined locally. A sustained shift to local refining could reduce the import bill, a key pressure point for the naira.