Energy Watchdog supports Dangote refinery’s appeal against fuel import license ruling

Energy Watchdog supports Dangote refinery’s appeal against fuel import license ruling

By Gabriel Kekong

Abuja (Core Reporters) The Energy Watchdog has backed the decision of Dangote Petroleum Refinery and Petrochemicals to seek leave to appeal against a Federal High Court ruling directing the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing petroleum products import licenses to three major oil market players.

In a statement signed by Eng. Martins Tayo, the group described the move as necessary to protect Nigeria’s domestic refining industry and reduce dependence on imported petroleum products.

The ruling, delivered on September 28, 2026 by Justice Inyang E. Ekwo in case no. FHC/ABJ/CS/1363/2026, directed the NMDPRA to continue issuing import licenses to Matrix Energy, AA Rano and AYM Shafa.

The Energy Watchdog argued that the ruling undermined the objectives of the Petroleum Industry Act (PIA) and threatened investment in domestic refining capacity.

“We fully reject and condemn the lower court’s ruling. It is a deeply flawed decision that ignores the clear intent of the Petroleum Industry Act and the national interest in building a robust domestic refining industry,” said Engineer Martins Tayo.

The group also cited a reported decline in gasoline imports in the first quarter of 2026, coupled with an increase in supplies from local refineries, particularly the Dangote plant, as evidence of the country’s growing domestic refining capacity.

It argued that maintaining import licenses despite increasing local production could undermine efforts to achieve self-sufficiency in refined petroleum products and weaken investor confidence in the sector.

According to the organisation, Dangote Refinery’s decision to seek leave to appeal as an interested party was timely, given the potential implications of the ruling for the future of Nigeria’s downstream oil industry.

“The lower court’s decision amounts to a judicial approval of continued importation regardless of local capacity.

“We condemn it unreservedly because it threatens to reverse the hard-won progress made in recent years,” said Engineer Tayo.

The Energy Watchdog has argued that the Petroleum Industry Act was designed to encourage investment in midstream and downstream infrastructure, warning that leaving the ruling in place could send a negative signal to investors who have committed significant resources to domestic refining projects.

The group urged the Court of Appeal to grant the Dangote refinery leave to appeal and ultimately set aside the Federal High Court order, describing the case as significant for Nigeria’s energy security and the development of its refining industry.

“Any ruling that forces continued importation of fuel products when local refineries can supply the market is a setback for Nigeria.

“We condemn the lower court’s ruling in the strongest terms and fully support the appeal filed by Dangote Refinery,” the statement concluded.

“The Court of Appeal must correct this error and reaffirm that the era of automatic import licensing is over,” the statement added.