A Federal High Court in Lagos has issued orders affecting the ongoing dispute over the issuance of petroleum-product import licences by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to major oil marketers, including Matrix Energy, A.A. Rano and AYM Shafa.
The dispute forms part of a wider legal challenge by Dangote Petroleum Refinery over the continued issuance and renewal of licences for the importation of refined petroleum products into Nigeria.
Background to the dispute
Dangote Petroleum Refinery instituted legal proceedings challenging the continued issuance or renewal of petroleum-product import licences by the relevant authorities. The refinery has argued that the Petroleum Industry Act (PIA) contemplates petroleum-product imports where domestic supply is insufficient to meet national demand.
In the fresh proceedings filed in Lagos, the refinery sought orders affecting import licences issued or renewed by the NMDPRA and other government authorities. It also sought restrictions on facilities used to store imported petroleum products in circumstances where, according to its case, domestic supply is adequate.
Matrix Energy, A.A. Rano and AYM Shafa subsequently sought to be joined in the proceedings, arguing that they are directly affected by the outcome of the case because they hold regulatory approvals to import and distribute petroleum products.
The three marketers maintained that they are licensed operators with substantial investments in petroleum infrastructure, logistics and distribution networks. They also argued that removing their ability to import could have consequences for their businesses and the wider downstream petroleum market.
Court’s earlier status-quo order
In April 2026, Dangote Refinery had sought an interim injunction restraining the Attorney-General of the Federation and relevant regulatory agencies, including the NMDPRA, from issuing or renewing petroleum-product import licences pending determination of the substantive application.
Rather than granting the requested interim injunction, the court directed the parties to maintain the status quo pending determination of the motion on notice.
Dangote Refinery subsequently complained that import licences continued to be issued despite the court’s directive, describing the development as a breach of the order.
Matrix, AA Rano and AYM defend their licences
The three oil marketers have argued that their participation in the Nigerian downstream petroleum sector is lawful and that their import licences were issued by the appropriate regulatory authority.
They have also opposed any move that would prevent them from importing petroleum products, arguing that imports can contribute to energy security and competition, particularly where domestic supply does not fully satisfy market requirements.
The marketers have further disputed the suggestion that their activities should automatically be stopped because of increased domestic refining capacity.
Fresh import approvals
Against the backdrop of the legal dispute, the NMDPRA has continued its regulatory process for petroleum imports.
For the third quarter of 2026, fresh approvals were issued to several downstream operators, including Matrix Energy, A.A. Rano and AYM Shafa, alongside other companies. The approvals covered petroleum products including Premium Motor Spirit (PMS), commonly known as petrol, and Automotive Gas Oil (AGO), or diesel.
The companies were also reported to have received further import licences for the fourth quarter of 2026. A September 2026 report indicated that Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Bono Energy were among the companies granted renewed petrol import approvals.
Domestic refining versus imports
The legal dispute comes at a time when Nigeria’s petroleum market is undergoing a significant change following the expansion of domestic refining capacity.
Available 2026 industry data cited in reports on the dispute indicate that petrol imports declined substantially in the first quarter of the year, while supply from domestic refineries increased. Petrol imports were reported at approximately 965.52 million litres in Q1 2026, compared with about 2.43 billion litres in Q1 2025. At the same time, supply from domestic refineries reportedly increased from about 1.996 billion litres to 3.179 billion litres.
The figures have become relevant to the legal arguments because Dangote Refinery maintains that continued imports should be restricted where domestic refineries can meet national demand.
The importing companies, however, have maintained that the ability to import remains important for competition and supply security.
Legal battle continues
The disagreement therefore involves both regulatory and commercial questions: whether import licences should continue to be issued as domestic refining capacity increases, how the Petroleum Industry Act should be interpreted regarding petroleum-product shortages, and the extent of NMDPRA’s authority to issue and renew import permits.
The latest court proceedings do not appear to amount to a final determination of the entire dispute over the legality of petroleum imports. Rather, the court’s earlier direction was to maintain the status quo pending determination of the substantive application. The matter has been scheduled for further hearing on October 7, 2026.
The outcome of the proceedings could have implications for Matrix Energy, A.A. Rano, AYM Shafa and other petroleum marketers, as well as for the balance between domestic refining and imported petroleum products in Nigeria.
For consumers, the central issue is whether Nigeria’s growing domestic refining capacity will eventually reduce the need for imports or whether imports will remain part of the country’s strategy for maintaining adequate and competitive petroleum supply.