The Federal High Court in Abuja has ruled that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) must continue issuing and renewing petroleum products import licences to three major oil marketers: Matrix Energy, AA Rano, and AYM Shafa. The court's decision, delivered by Justice Inyang Ekwo, stated that the regulator's refusal to grant or renew licences was in "direct non-compliance" with the Petroleum Industry Act (PIA).
The judgement followed a suit filed in June by the three oil marketers challenging the NMDPRA's refusal to regularly issue or renew their petroleum products import licences. The companies argued that the PIA does not prohibit the importation of petroleum products into Nigeria or prevent the regulator from issuing licences to eligible importers. Their lawyer, Raji Ahmed, a Senior Advocate of Nigeria, urged the court to affirm the legality of petroleum products imports and the regulator's obligation to issue licences to eligible operators.
The court ruled that the NMDPRA's refusal to issue and renew licences was inconsistent with the provisions of the PIA and that the authority had acted beyond the limits of the law. The judge held that any exercise of regulatory powers relating to import licences in violation of the PIA and other relevant laws was "null and void". The court also declared that Sections 31, 32, and other relevant provisions of the PIA mandate the NMDPRA to promote competition in the midstream and downstream petroleum sectors.
The plaintiffs, through their lawyers, Raji Ahmed and Chris Ekemezie, argued that allowing petroleum imports alongside local refining would promote competition, prevent monopolistic practices and price-fixing, and improve the overall performance of Nigeria's midstream and downstream petroleum sectors. They also stated that the three companies had collectively invested more than $20 billion in infrastructure, logistics, and retail networks to support their petroleum businesses.
The judgement comes amid an ongoing legal dispute over the issuance of petrol import licences in Nigeria, particularly following the expansion of domestic refining capacity by the Dangote Refinery. Dangote Refinery has argued in a separate suit that the continued issuance of petroleum products import licences contravenes Nigerian law, which it maintains permits imports only when local refineries cannot meet domestic demand. Matrix Energy, AA Rano, and AYM Shafa have also applied to join that suit.
Nigeria's petroleum supply landscape continues to change following increased output from domestic refineries. According to NMDPRA data, petrol imports declined sharply in the first quarter of 2026, while supplies from local refineries rose to about 3.18 billion litres. The data also showed that crude oil receipts by domestic refineries increased to 683,000 barrels per day (bpd) in August from 585,000 bpd in July, representing a 17 per cent increase.
The NMDPRA has approved petrol import permits covering about 830,000 metric tonnes for multiple companies ahead of the fourth quarter of 2026. Companies reportedly granted the permits include Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil, and Bono Energy. The approvals were issued on 18 September, according to George Ene-Ita, spokesperson for the authority, who confirmed the development, saying the goal was to ensure no supply gaps heading into the critical end-of-year period.
Key points
- The court ruled that the NMDPRA's refusal to issue licences was in direct non-compliance with the Petroleum Industry Act.
- The judgement promotes competition in the midstream and downstream petroleum sectors.
- The NMDPRA has approved petrol import permits for multiple companies ahead of the fourth quarter of 2026.
