ABUJA, Nigeria (XOL Africa) — The Federal High Court in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority to continue granting petroleum products import licences to Matrix Energy, AA Rano and AYM Shafa, provided the companies meet applicable statutory and regulatory requirements.
Justice Inyang Ekwo issued the order Monday in a judgment on a suit brought by the three oil marketers over the regulator’s refusal to regularly issue or renew their petroleum import licences.
The court found that the NMDPRA’s refusal to issue or renew the licences was in “direct non-compliance” with provisions of the Petroleum Industry Act, 2021.
“The consequences of non-compliance with the PIA and relevant laws make any exercise by the Authority in respect to import licences null and void,” Ekwo said, according to court documents cited by Reuters.
The court also held that the PIA does not impose a blanket ban on petroleum products imports or prevent the NMDPRA from licensing eligible importers.
The plaintiffs, represented by Raji Ahmed, SAN, and Chris Ekemezie, had asked the court to declare that the PIA does not prohibit petroleum products imports and does not prevent the regulator from issuing or renewing licences for eligible importers.
Ekwo further ruled that the NMDPRA is required under relevant provisions of the PIA, alongside Section 72 of the Federal Competition and Consumer Protection Act, to promote competition in Nigeria’s midstream and downstream petroleum sectors and prevent abuse of dominant market positions and restrictive business practices.
The court declared that Matrix Energy, AA Rano and AYM Shafa are entitled to the issuance, extension or renewal of import licences once they satisfy the conditions prescribed by the regulator.
The order specifically directs the NMDPRA to continue granting, issuing, extending, renewing or reissuing licences, permits and authorisations for midstream and downstream operations relating to petroleum products imports, subject to statutory and regulatory requirements.
Marketers cite $20 billion investment
In court filings, the oil marketers said they had invested more than $20 billion in infrastructure, logistics and retail networks supporting their petroleum businesses, according to Reuters.
The companies argued that continued access to import licences was necessary to maintain competition in the downstream market.
Their legal challenge comes amid a broader dispute over the role of imported fuel as Nigeria’s domestic refining capacity expands.
Dangote refinery dispute
The ruling comes as Dangote Petroleum Refinery separately challenges the continued issuance of fuel import licences.
Dangote Refinery has argued in a separate case that imports should be permitted only when domestic production is insufficient to meet national demand. Matrix Energy, AA Rano and AYM Shafa had sought to join that separate $100 billion suit filed by Dangote Refinery against the Attorney General of the Federation.
The two legal proceedings are separate, meaning Monday’s judgment does not resolve the wider dispute involving Dangote Refinery and the federal government.
Nigeria’s downstream petroleum market has been undergoing significant changes since the start-up of the Dangote refinery, which has a stated capacity of 650,000 barrels per day, while regulators continue to manage the balance between domestic refining and imported supplies.
The Federal High Court’s ruling therefore leaves the NMDPRA with a continuing obligation to consider import-licence applications under the applicable legal and regulatory conditions, rather than imposing a general prohibition on imports.
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