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, AA Rano and AYM Shafa, in accordance with applicable laws.

Justice Inyang Ekwo, while delivering judgment in the case, held that the NMDPRA’s refusal to issue or renew import licences for the three oil marketers amounted to non-compliance with provisions of the Petroleum Industry Act (PIA) 2021.

Court Faults NMDPRA's Position

The judge said the case arose from the regulator’s refusal to issue and renew petroleum products import licences sought by the plaintiffs.

Justice Ekwo held that the actions of the NMDPRA were inconsistent with the requirements of the PIA and that the authority had acted beyond the powers provided under the relevant legislation.

According to the judgment, any exercise of regulatory authority relating to import licences that fails to comply with the applicable provisions of the law could not stand.

The court consequently found that the three oil marketers had successfully established their claims against the NMDPRA and ruled that the case succeeded on its merits.

PIA Requires Competitive Petroleum Market, Court Says

Justice Ekwo also examined several provisions of the Petroleum Industry Act, 2021, alongside Section 72 of the Federal Competition and Consumer Protection Act (FCCPA).

The court held that the provisions impose obligations on the NMDPRA to promote a competitive market within Nigeria’s midstream and downstream petroleum sectors.

The judgment further stated that the regulatory authority is required to prevent the abuse of dominant market positions and restrictive business practices in the petroleum industry.

Implications for Petroleum Importers

The ruling places renewed focus on how petroleum import licences are administered within Nigeria’s downstream oil sector.

For Matrix Energy, AA Rano and AYM Shafa, the judgment provides a legal basis for the continuation of their import-licensing arrangements, subject to the applicable laws and regulatory requirements.

The decision also underscores the role of competition and regulatory compliance in the operation of Nigeria’s petroleum market.

The full impact of the judgment will depend on how the NMDPRA implements the court’s directives and whether any further legal steps are pursued by the parties.

Reporting by TalkNaijaMedia