The Federal High Court in Abuja has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to renew petroleum import licences for Matrix Energy, AA Rano, and AYM Shafa. The court ruled that the NMDPRA's refusal to issue or renew the licences violated the Petroleum Industry Act (PIA) 2021. The judgement was delivered by Justice Inyang Ekwo on Monday, following a suit filed by the three oil marketers.
The plaintiffs, represented by Raji Ahmed, SAN, and Chris Ekemezie, sought a declaration that the PIA does not prohibit petroleum products importation into Nigeria. They also asked the court to affirm the NMDPRA's power to issue and renew import licences to companies that meet the required conditions. The court considered provisions of the PIA and Section 72 of the Federal Competition and Consumer Protection Act, which require the NMDPRA to promote competition in the petroleum sector.
Justice Ekwo held that the NMDPRA exceeded its powers under the law and that all actions on import licences must comply with the PIA and other relevant laws. The judge declared that any action that breaches those laws would be null and void. The court ruled that the plaintiffs had established their claims, and therefore, the case succeeded on its merits.
The judgement allows Matrix Energy, AA Rano, and AYM Shafa to obtain or renew their petroleum import licences, provided they meet the conditions set by the NMDPRA. The court considered the regulator's role in promoting competition and preventing abuse of dominant positions in the petroleum sector. The NMDPRA's actions were found to be contrary to the PIA and other relevant laws.
The suit was filed against the backdrop of the NMDPRA's refusal to issue or renew petroleum import licences to the three oil marketers. The plaintiffs argued that the regulator's actions were unlawful and sought the court's intervention. The court's decision is expected to have significant implications for the petroleum sector in Nigeria.
The Federal High Court's judgement is a significant development in the petroleum sector, as it clarifies the NMDPRA's powers and responsibilities in issuing and renewing import licences. The court's decision will likely impact the operations of oil marketers in Nigeria and may lead to changes in the way the sector is regulated.
The NMDPRA has been directed to comply with the court's judgement and renew the import licences for Matrix Energy, AA Rano, and AYM Shafa, provided they meet the required conditions. The court's decision is a victory for the three oil marketers, who had sought the court's intervention to resolve the dispute with the NMDPRA.
Key points
- The Federal High Court in Abuja has ordered the NMDPRA to renew petroleum import licences for Matrix Energy, AA Rano, and AYM Shafa.
- The court's decision was based on the fact that the NMDPRA's refusal to issue or renew the licences violated the Petroleum Industry Act 2021.
- The judgement allows the three oil marketers to obtain or renew their petroleum import licences, provided they meet the conditions set by the NMDPRA.
