The Federal High Court in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue granting petroleum products import licences to Matrix Energy, A.A. Rano and AYM Shafa, provided the companies meet all statutory and regulatory conditions. This decision was made by Justice Inyang Ekwo, who ruled that restricting the licences to these companies breached provisions of the Petroleum Industry Act (PIA).
The judgment comes amid a wider dispute over fuel imports, as Dangote Refinery challenges the continued licensing of petrol importers. The court declared that the PIA and relevant provisions of the Federal Competition and Consumer Protection Act require NMDPRA to promote competition in Nigeria’s midstream and downstream petroleum markets and prevent abuse of dominant positions and restrictive business practices.
The marketers, Matrix Energy, A.A. Rano and AYM Shafa, had complained that NMDPRA had, since July 2025, granted or renewed their import licences only sporadically rather than regularly. In an affidavit, Sabiu Saidu Mahuta, executive director of A.A. Rano Nigeria Limited, said the situation was entrenching market dominance by local refineries.
The marketers told the court that they had collectively invested more than $20 billion in infrastructure, logistics and retail networks for their petroleum businesses. Their counsel, Raji Ahmed, SAN, argued that allowing imports alongside local production would strengthen competition and help prevent monopoly and price-fixing in the downstream market.
The court specifically directed NMDPRA to continue granting, issuing, extending, renewing or reissuing licences, permits and authorisations for midstream and downstream operations, particularly those relating to petroleum products imports. Justice Ekwo said the regulator’s actions in refusing or restricting the licences were in “direct non-compliance” with the PIA and that any exercise of its powers contrary to the law would be null and void.
The judgment comes against the backdrop of a continuing dispute over the issuance of fuel import licences as domestic refining capacity expands. NMDPRA recently approved petrol import permits totalling 830,000 metric tonnes for the fourth quarter of 2026 to Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Bono Energy.
The latest judgment therefore adds a significant judicial pronouncement to the ongoing debate over how Nigeria should balance growing domestic refining capacity with continued access to imported petroleum products. The case is a significant development in the Nigerian petroleum industry, with implications for competition and market dynamics.
Key points
- The Federal High Court orders NMDPRA to continue granting fuel import licences to Matrix Energy, A.A. Rano and AYM Shafa.
- The judgment aims to promote competition in Nigeria’s midstream and downstream petroleum markets.
- The case is part of a wider dispute over fuel imports, with Dangote Refinery challenging the continued licensing of petrol importers.
