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Oct 14, 20266 min read

Oil import licences: Group urges court to protect local refineries

Oil import licences: Group urges court to protect local refineries
Galaxy TV · Energy desk · Lagos

An energy advocacy group, Energy Watchdog, has backed Dangote Petroleum Refinery’s bid to challenge a court ruling on fuel import licences, warning that continued imports could undermine local refining investments.

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An energy advocacy group, Energy Watchdog, has backed Dangote Petroleum Refinery’s bid to challenge a court ruling on fuel import licences, warning that continued imports could undermine local refining investments.

The group urged the Court of Appeal to grant the refinery leave to appeal the September 28 judgment of the Federal High Court in Abuja, which directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority to continue issuing import licences to Matrix Energy, AA Rano and AYM Shafa.

Energy Watchdog, in a statement signed by its representative, Engr. Martins Tayo, argued that the ruling could weaken investor confidence and prolong Nigeria’s dependence on imported petroleum products despite increasing domestic refining capacity.

“We completely reject and condemn in totality the judgment of the lower court,” Tayo said, describing the decision as one that failed to consider the national interest in building a sustainable domestic refining industry.

The judgment, delivered by Justice Inyang Ekwo in suit No. FHC/ABJ/CS/1363/2026, followed a case filed by the three oil marketers over the issuance and renewal of their import licences.

Energy Watchdog maintained that Nigeria’s expanding refining capacity should influence decisions on petroleum imports, citing a reported decline in petrol imports in the first quarter of 2026 alongside increased supplies from local refineries, particularly the Dangote facility.

It argued that allowing continued imports without sufficient consideration of local production could discourage further investment in refining infrastructure and weaken efforts to achieve energy self-sufficiency.

“The lower court’s decision amounts to a judicial endorsement of continued importation irrespective of local capacity,” Tayo said, warning that the ruling could reverse gains made in developing the domestic refining sector.

The group also cited the Petroleum Industry Act as a framework intended to encourage investment in midstream and downstream infrastructure, arguing that regulatory decisions should support the growth of local refining.

It described Dangote Refinery’s move to seek leave to appeal as timely, urging the appellate court to set aside the lower court’s order.

“Any judgment that forces the continued importation of fuel products when local refineries can supply the market is a setback for Nigeria,” the statement said.

The dispute highlights the tension between protecting investments in domestic refining and preserving petroleum marketers’ access to import licences under the existing regulatory framework.

The refinery’s application seeks permission to challenge the judgment as an interested party. The Court of Appeal’s decision will determine whether it can proceed with the appeal.

The Federal High Court’s order remains in force unless it is set aside or varied by a competent court.

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Catherine Chinenye Igwe
Editor

Reporting for Galaxy TV from Lagos and Abuja, covering energy and national affairs across Nigeria and West Africa