A Federal High Court sitting in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue granting petroleum products import licences to Matrix Energy, AA Rano, and AYM Shafa. The court, presided over by Justice Inyang Ekwo, gave the order while delivering judgment in a suit filed by the three oil marketers against the regulatory authority.
The plaintiffs, represented by Raji Ahmed, SAN, and Chris Ekemezie, Esq., had sought a declaration that the Petroleum Industry Act (PIA) does not prohibit the importation of petroleum products into Nigeria or prevent the NMDPRA from granting or renewing licences for eligible importers. The case was founded on the NMDPRA's refusal to issue and renew petroleum products import licences for the plaintiffs.
Justice Ekwo held that the NMDPRA's actions were "in direct non-compliance with the PIA," adding that it had acted beyond the provisions of the law. The judge ruled that any exercise by the NMDPRA concerning import licences, where there was non-compliance with the PIA and relevant laws, would be "null and void." This decision implies that the NMDPRA must adhere to the provisions of the PIA in its regulatory activities.
The court also declared that Sections 31(a), (d), (l), 32(l), (s), (c), (u), (aa), (ii), (jj), and 211 of the PIA, 2021, read together with Section 72 of the Federal Competition and Consumer Protection Act (FCCPA), mandate the NMDPRA to promote competition in the midstream and downstream petroleum sector. The provisions also require the authority to prevent abuse of dominant positions and restrictive business practices in the sector.
Justice Ekwo further declared that the three companies, upon fulfilling the conditions stipulated by the NMDPRA, are entitled to the issuance, extension or renewal of petroleum products import licences. This decision is expected to have implications for the regulation of petroleum products importation and competition among fuel marketers across the country.
The judgment could lead to increased competition in the fuel importation market, potentially benefiting consumers and the economy. The NMDPRA is required to ensure that its actions are in compliance with the PIA and other relevant laws, promoting a fair and competitive business environment.
The case highlights the importance of regulatory compliance and the role of the judiciary in ensuring that regulatory bodies act within their legal mandates. The decision is a significant development in the Nigerian petroleum industry, and its impact will be closely monitored by stakeholders.
Key points
- The court ruled that the NMDPRA's refusal to issue or renew import licences for the companies was in direct non-compliance with provisions of the Petroleum Industry Act (PIA), 2021.
- The NMDPRA is mandated to promote competition in the midstream and downstream petroleum sector and prevent abuse of dominant positions and restrictive business practices.
- The judgment implies that the NMDPRA must adhere to the provisions of the PIA in its regulatory activities, promoting a fair and competitive business environment.
