The Federal High Court in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to “continue to grant” petroleum product import licences to three major oil marketers—Matrix Energy, AA Rano, and AYM Shafa—in line with relevant laws.
Justice Inyang Ekwo made the order in his judgment on Monday, holding that the NMDPRA’s refusal to issue licences to the three oil marketers was in “direct non-compliance” with the Petroleum Industry Act (PIA).
Among other reliefs, the lawyers to the three companies, Raji Ahmed, SAN, and Chris Ekemezie, Esq., sought a declaration that the regime of the Petroleum Industry Act, 2021, does not outlaw or ban the importation of petroleum products into Nigeria and neither does it preclude or prohibit the NMDPRA from granting licences to eligible importers or renewing same for the importation of petroleum products into Nigeria.
In delivering his judgment, the judge observed that the case was founded on the refusal of the NMDPRA to issue and renew petroleum import licences to the plaintiffs.
According to the judge, the “consequence of non-compliance” with the PIA and relevant laws makes any exercise by the authority in respect of import licences “null and void.”
The judge subsequently held that the plaintiffs had successfully established their claim against the NMDPRA, adding that the case succeeded on its merits.
The judge declared that the provisions of Sections 31(a), (d), (l), Section 32(l), (s), (c), (u), (aa), (ii), (jj), and Section 211 of the Petroleum Industry Act, 2021, read together with the provisions of Section 72 of the Federal Competition and Consumer Protection Act (FCCPA), obligate, mandate, constrain, or compel the NMDPRA to promote a competitive market for midstream and downstream petroleum operations and to prevent the abuse of dominant positions and restrictive business practices with regard thereto.
The judge also declared that the plaintiffs, upon fulfilment of the conditions stipulated by the defendant for the grant of petroleum products import licences, are entitled to the issuance or grant of same and/or extension or renewal of such import licences by the defendant.
“A DECLARATION that by the provisions of the Petroleum Industry Act, 2021, particularly, Sections 29(3), 32(a)–(uu) & 33(a)–(w) thereof, the regulation of the midstream and downstream operations of the Petroleum Industry, especially, the power to grant, issue, modify, extend, renew, suspend, cancel, reissue or terminate licences, permits and authorisations for midstream and downstream operations is vested in the Defendant only.”
The judge specifically granted the order directing the NMDPRA to continue to grant, issue, extend, renew, or reissue all licences, permits, and authorisations for midstream and downstream operations, particularly as they relate to the importation of petroleum products, to the plaintiffs upon fulfilment of all statutory and/or regulatory preconditions for same.
Also, in an affidavit deposed to by Sabiu Saidu Mahuta, the Executive Director of A.A. Rano Nigeria Limited, he stated that since July 2025, the NMDPRA had, at best, granted, issued, extended, renewed, or reissued petroleum products import licences, permits, or authorisations to the plaintiffs only sporadically, instead of regularly.
He stated that the authority’s action and/or inaction was entrenching market dominance and monopolisation of the downstream sector by local refineries.
“Collectively, the Plaintiffs have invested more than $20,000,000,000 [Twenty Billion United States of America Dollars] in infrastructure, logistics and retail networks for the smooth operations of their licensed petroleum products businesses,” he stated.
Ahmed urged the court to hold that the importation of petroleum products alongside local production of same would engender competition, check monopoly and price-fixing, among other things, and lead to the overall improvement of the midstream and downstream sector of the petroleum industry.
The NMDPRA’s legal team also filed its processes in the matter.
The latest legal move comes after recent reports from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that Nigeria’s petrol imports dropped sharply in the first quarter of 2026, as supply from local refineries climbed to about 3.18 billion litres.
Credit to our Media Partner DailyTrust .
