Revealed: Why Dangote Refinery is fighting against fuel imports

• Energy Watchdog backed Dangote Refinery’s request to appeal a ruling that keeps fuel import licences active
• The group warned that continued imports could weaken local refining investment and Nigeria’s energy security
• The Court of Appeal has not yet granted permission to appeal or overturned the ruling

Energy Watchdog has backed Dangote Petroleum Refinery and Petrochemicals’ move to challenge a court ruling on fuel import licences, warning that continued reliance on foreign supplies could undermine Nigeria’s domestic refining investments.

In a statement signed by its representative, Martins Tayo, the group urged the Court of Appeal to grant the refinery permission to appeal, describing the dispute as critical to Nigeria’s energy security and efforts to strengthen local production.

Court ruling sparks opposition

According to the statement, 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 Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing petroleum product import licences to Matrix Energy, AA Rano and AYM Shafa.

Energy Watchdog criticised the decision, arguing that it conflicted with the objectives of the Petroleum Industry Act (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.

Group warns of investment risks

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 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.

Dangote seeks permission to appeal

The organisation described Dangote Refinery’s decision to seek leave to appeal as an interested party as timely, given the judgment’s potential implications for the downstream industry.

It 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 nevertheless 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.

3 marketers get court approval to continue fuel imports

Legit.ng earlier reported that the Federal High Court in Abuja has ruled that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) must continue issuing petroleum products import licences to Matrix Energy, A.A. Rano and AYM Shafa.

Justice Inyang Ekwo delivered the judgment on Monday in a suit brought by the three oil marketers against the regulator, finding that the NMDPRA's refusal to issue or renew their import licences put it in “direct non-compliance” with the Petroleum Industry Act (PIA) 2021.

Source: Legit.ng