In a recent judgment, Justice Inyang Ekwo of the Federal High Court in Abuja ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue granting petroleum products import licences to three major oil marketers: Matrix Energy, AA Rano, and AYM Shafa. The court's decision was based on the NMDPRA's refusal to issue licences to the three oil marketers, which was deemed to be in direct non-compliance with the Petroleum Industry Act (PIA).
The case was brought before the court by the three oil marketers, with their lead counsel, Dr. Ahmed Raji, SAN, arguing that the PIA does not outlaw or ban the importation of petroleum products into Nigeria. The plaintiffs sought a declaration that the NMDPRA's refusal to issue licences was unlawful and sought an order directing the authority to grant licences to eligible importers. The court found that the NMDPRA's actions were beyond the provisions of the law and therefore null and void.
Justice Ekwo held that the plaintiffs had successfully established their claim against the NMDPRA, and the case succeeded on its merits. The judge cited several provisions of the PIA and the Federal Competition and Consumer Protection Act (FCCPA), which obligate the NMDPRA to promote a competitive market for midstream and downstream petroleum operations and prevent the abuse of dominant positions and restrictive business practices.
The court's judgment also declared that the plaintiffs are entitled to the issuance or grant of petroleum products import licences upon fulfilment of the conditions stipulated by the NMDPRA. The judge granted an order directing the NMDPRA to continue granting licences to the plaintiffs upon fulfilment of all statutory and regulatory preconditions.
The PIA, which came into effect in 2021, regulates the midstream and downstream operations of the petroleum industry in Nigeria. The court noted that the NMDPRA has the power to grant, issue, modify, extend, renew, suspend, cancel, reissue, or terminate licences, permits, and authorisations for midstream and downstream operations.
The three oil marketers, Matrix Energy, AA Rano, and AYM Shafa, had approached the court seeking redress after the NMDPRA refused to issue them with petroleum products import licences. The court's judgment is expected to have significant implications for the oil and gas industry in Nigeria, particularly with regards to the importation of petroleum products.
The NMDPRA has been directed to comply with the court's order and grant licences to the three oil marketers upon fulfilment of the necessary conditions. The court's decision is a significant development in the ongoing efforts to promote a competitive market for midstream and downstream petroleum operations in Nigeria.
Key points
- The court ruled that the NMDPRA's refusal to issue licences to Matrix Energy, AA Rano, and AYM Shafa was in direct non-compliance with the Petroleum Industry Act (PIA).
- The plaintiffs were seeking a declaration that the PIA does not outlaw or ban the importation of petroleum products into Nigeria.
- The court's judgment is expected to have significant implications for the oil and gas industry in Nigeria.
