The Federal High Court in Abuja has ruled in favor of Matrix Energy, AA Rano, and AYM Shafa, ordering the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing petroleum products import licences to the three oil marketing companies. The court held that NMDPRA's refusal to issue and renew petroleum import licences for the companies was in "direct non-compliance" with the Petroleum Industry Act (PIA).
Justice Inyang Ekwo gave the order in a judgment on a suit marked FHC/ABJ/CV/1363/2026, filed by the three oil marketing companies. The judge said the case arose from the authority's refusal to issue and renew the import licences sought by the plaintiffs. He held that the actions of NMDPRA were "in direct non-compliance with the PIA", adding that the authority had acted beyond the provisions of the law.
The judge further held that the consequence of non-compliance with the PIA and other relevant laws rendered any exercise by the authority in respect of the import licences "null and void." He further held that the plaintiffs successfully established their claim against the NMDPRA, adding that the case succeeded on its merits. The plaintiffs had argued that the regime of the Petroleum Industry Act, 2021, does not outlaw or ban the importation of petroleum products into Nigeria.
The court declared that the provisions of Sections 31(a), (d), (l), Section 32(l), (s), (c), (u), (aa), (ii), (jj), and Section 211 of the Petroleum Industry Act, 2021, read together with the provisions of Section 72 of the Federal Competition and Consumer Protection Act (FCCPA), obligate, mandate, constrain, or compel the NMDPRA to promote a competitive market for midstream and downstream petroleum operations.
A. A. Rano had, in a supporting affidavit deposed to by its Executive Director, Sabiu Saidu Mahuta, stated that since July 2025, the NMDPRA had, at best, granted, issued, extended, renewed, or reissued petroleum products import licences, permits, or authorisations to the plaintiffs only sporadically, instead of regularly. The firm claimed that the plaintiffs have collectively invested more than $20billion in infrastructure, logistics, and retail networks for the smooth operations of their licensed petroleum products businesses.
Justice Ekwo issued an order directing the NMDPRA "to continue to grant, issue, extend, renew, or reissue all licences, permits, and authorisations for midstream and downstream operations, particularly as they relate to the importation of petroleum products, to the plaintiffs upon fulfilment of all statutory and/or regulatory preconditions for same." The order is aimed at promoting a competitive market for midstream and downstream petroleum operations.
The court's decision is a significant development in the petroleum industry, as it seeks to prevent the abuse of dominant positions and restrictive business practices. The NMDPRA is expected to comply with the court's order and issue the import licences to the three oil marketing companies. The decision is also expected to have a positive impact on the country's petroleum industry, as it promotes competition and fair business practices.
Key points
- The Federal High Court in Abuja has ordered NMDPRA to issue import licences to Matrix Energy, AA Rano, and AYM Shafa.
- The court's decision is based on the Petroleum Industry Act (PIA) and the Federal Competition and Consumer Protection Act (FCCPA).
- The plaintiffs had invested over $20billion in infrastructure, logistics, and retail networks for the smooth operations of their licensed petroleum products businesses.
