Fuel Import: Federal High Court Directs NMDPRA to Licence Matrix Energy, AA Rano, AYM Shafa

ABUJA — The Federal High Court sitting in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) not to stop issuing or renewing petroleum products import licences for Matrix Energy, AA Rano and AYM Shafa, provided the companies meet the regulator’s stipulated requirements.

The ruling was delivered by Justice Inyang Ekwo following a legal challenge brought by the three oil marketers against the NMDPRA.

The court found that the regulator’s refusal to issue or renew the companies’ import licences was inconsistent with the Petroleum Industry Act (PIA), 2021.

The plaintiffs had sought a declaration that the PIA neither prohibits petroleum products importation into Nigeria nor prevents the NMDPRA from granting or renewing licences to eligible importers.

Justice Ekwo agreed with the plaintiffs, holding that the NMDPRA’s refusal to issue and renew the licences amounted to direct non-compliance with the provisions of the PIA.

The judge said the authority had acted beyond the powers provided under the law and ruled that any exercise relating to import licences that fails to comply with the PIA and other applicable legislation would be “null and void.”

Justice Ekwo further held that the three companies had successfully proved their claims against the NMDPRA, declaring that the suit succeeded on its merits.

The court also referenced several provisions of the PIA, including Sections 31(a), (d), (l), 32(l), (s), (c), (u), (aa), (ii), (jj), and 211, alongside Section 72 of the Federal Competition and Consumer Protection Act.

According to the judgment, these provisions require the NMDPRA to promote competition in Nigeria’s midstream and downstream petroleum sector, while also preventing abuse of dominant positions and restrictive business practices.

The court ultimately declared that the plaintiffs are entitled to the issuance, extension or renewal of their petroleum products import licences once they satisfy the conditions set by the NMDPRA.

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