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 Limited. This decision was made by Justice Inyang Ekwo, who delivered a judgment in favour of the three oil marketers. The court found that NMDPRA's refusal to issue or renew import licences for the companies did not comply with the provisions of the Petroleum Industry Act, 2021.
The three companies had approached the court seeking several declarations concerning the interpretation and application of the Petroleum Industry Act. They asked the court to declare that the PIA does not prohibit the importation of petroleum products into Nigeria and that the law does not prevent NMDPRA from issuing or renewing import licences for companies that meet the necessary regulatory requirements. The court's judgment places fresh emphasis on the authority's responsibility to promote competition in Nigeria's midstream and downstream petroleum sector.
Justice Ekwo held that the case arose from NMDPRA's refusal to issue or renew the import licences of the plaintiffs. The judge found that the actions of the authority were "in direct non-compliance with the PIA," stressing that a regulatory decision must remain within the limits set by the law. He further held that any action taken by NMDPRA in relation to petroleum products import licences without complying with the provisions of the PIA and other applicable laws would be "null and void."
The court subsequently ruled in favour of the three companies, holding that they had successfully established their claims against the regulatory authority. Justice Ekwo also examined provisions of the PIA alongside the Federal Competition and Consumer Protection Act (FCCPA). The court specifically referred to Sections 31(a), (d), (l), 32(l), (s), (c), (u), (aa), (ii), (jj), and 211 of the PIA, 2021, as well as Section 72 of the FCCPA.
According to the judgment, the provisions impose responsibilities on NMDPRA to promote competition within the midstream and downstream petroleum industry. The provisions also require the regulator to guard against the abuse of dominant market positions and restrictive business practices. Justice Ekwo consequently declared that Matrix Energy, A.A. Rano, and AYM Shafa are entitled to the issuance, extension, or renewal of petroleum products import licences once they satisfy the conditions and requirements stipulated by NMDPRA.
The ruling does not mean that the companies can import petroleum products without regulatory approval. Rather, the judgment affirms that eligible companies that meet the requirements set by the regulator cannot be denied licences in a manner that conflicts with the provisions of the law. The decision comes against the backdrop of continued debate over petrol imports and the role of domestic refining in Nigeria's downstream petroleum market.
NMDPRA recently approved petrol import permits covering about 830,000 metric tonnes for six companies for the fourth quarter of 2026. The companies listed were Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil, and Bono Energy. The approvals were reportedly issued on September 18. The latest approvals followed earlier import allocations during the year as the regulator sought to prevent shortages in the domestic market.
Key points
- The court ruled that NMDPRA's refusal to issue or renew import licences for the three companies was unlawful.
- The judgment places fresh emphasis on the authority's responsibility to promote competition in Nigeria's midstream and downstream petroleum sector.
- The decision comes against the backdrop of continued debate over petrol imports and the role of domestic refining in Nigeria's downstream petroleum market.
