The Federal High Court in Abuja has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to keep issuing petroleum-products import permits to Matrix Energy, AA Rano and AYM Shafa.
Justice Inyang Ekwo issued the directive on Monday in a case brought by the three fuel marketers against the regulator. The court found that the NMDPRA had breached the Petroleum Industry Act (PIA) 2021 by declining to issue or renew the companies’ import licences.
Represented by Raji Ahmed, SAN, and Chris Ekemezie, the plaintiffs asked the court to confirm that the PIA neither bans petroleum-product imports into Nigeria nor bars the NMDPRA from issuing or renewing permits for companies that meet the required conditions. Justice Ekwo said the dispute arose from the authority’s failure to grant or extend the licences sought by the marketers.
The judge ruled that the regulator’s conduct was inconsistent with the PIA and amounted to action beyond the authority granted under the law. He added that any decision involving import licences taken in breach of the PIA or other applicable legislation would have no legal effect. Justice Ekwo therefore concluded that the companies had proved their case and that their claims should succeed.
The court also said Sections 31(a), (d), (l), 32(l), (s), (c), (u), (aa), (ii), (jj), and 211 of the PIA, when considered alongside Section 72 of the Federal Competition and Consumer Protection Act, require the NMDPRA to encourage competition across Nigeria’s midstream and downstream petroleum industries. Those provisions also oblige the regulator to curb the misuse of market power and restrictive commercial conduct in the sector.
Justice Ekwo further held that Matrix Energy, AA Rano and AYM Shafa qualify to receive, extend or renew their petroleum-product import licences once they satisfy the requirements set by the NMDPRA. The ruling could reshape the oversight of fuel imports and intensify competition among petroleum marketers in Nigeria.
