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, A.A. Rano and AYM Shafa Limited.
Justice Inyang Ekwo issued the order while delivering judgment in a suit filed by the three oil marketers against the petroleum regulator.
The court found that the decision by NMDPRA to refuse to issue or renew import licences for the companies did not comply with provisions of the Petroleum Industry Act, 2021.
The judgment places fresh emphasis on the authority’s responsibility to promote competition in Nigeria’s midstream and downstream petroleum sector.
It also comes at a time when the continued importation of petrol remains the subject of a wider legal and commercial dispute involving major players in the Nigerian oil industry.
The three companies had approached the court through their lawyers, Raji Ahmed, SAN, and Chris Ekemezie, Esq., seeking several declarations concerning the interpretation and application of the Petroleum Industry Act.
Among other things, they asked the court to declare that the PIA does not prohibit the importation of petroleum products into Nigeria.
They also sought a declaration that the law does not prevent NMDPRA from issuing or renewing import licences for companies that meet the necessary regulatory requirements.
Justice Ekwo, in his judgment, held that the case arose from the regulator’s refusal to issue or renew the import licences of the plaintiffs.
The judge found that the actions of the authority were “in direct non-compliance with the PIA,” stressing that a regulatory decision must remain within the limits set by the law.
He further held that any action taken by NMDPRA in relation to petroleum products import licences without complying with the provisions of the PIA and other applicable laws would be “null and void.”
The court subsequently ruled in favour of the three companies, holding that they had successfully established their claims against the regulatory authority.
Justice Ekwo also examined provisions of the PIA alongside the Federal Competition and Consumer Protection Act (FCCPA).
The court specifically referred to Sections 31(a), (d), (l), 32(l), (s), (c), (u), (aa), (ii), (jj), and 211 of the PIA, 2021, as well as Section 72 of the FCCPA.
According to the judgment, the provisions impose responsibilities on NMDPRA to promote competition within the midstream and downstream petroleum industry.
The provisions also require the regulator to guard against the abuse of dominant market positions and restrictive business practices.
Justice Ekwo consequently declared that Matrix Energy, A.A. Rano and AYM Shafa are entitled to the issuance, extension or renewal of petroleum products import licences once they satisfy the conditions and requirements stipulated by NMDPRA.
The ruling does not mean that the companies can import petroleum products without regulatory approval.
Rather, the judgment affirms that eligible companies that meet the requirements set by the regulator cannot be denied licences in a manner that conflicts with the provisions of the law.
The decision comes against the backdrop of continued debate over petrol imports and the role of domestic refining in Nigeria’s downstream petroleum market.
NMDPRA recently approved petrol import permits covering about 830,000 metric tonnes for six companies for the fourth quarter of 2026.
The companies listed were Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Bono Energy. The approvals were reportedly issued on September 18.
The latest approvals followed earlier import allocations during the year as the regulator sought to prevent shortages in the domestic market.
NMDPRA spokesperson George Ene-Ita confirmed the fourth-quarter approvals and said they were intended to prevent supply gaps during the end-of-year period.
“Yes, petrol import permits were approved for Q4 2026 to ensure there’re no supply gaps heading into the critical end-of-year period,” Ene-Ita said.
The continued issuance of import permits has, however, remained controversial, particularly because of the growing capacity of the Dangote Petroleum Refinery.
The 650,000-barrel-per-day refinery has repeatedly pushed for greater reliance on locally refined petroleum products rather than imported fuel.
Dangote Refinery has challenged the continued issuance and renewal of fuel import licences in court, arguing that such licences should only be granted where domestic supply is insufficient to meet national demand.
The refinery’s current legal challenge is separate from the case decided by Justice Ekwo.
The dispute has placed the interpretation of the Petroleum Industry Act at the centre of the disagreement between the refinery, petroleum marketers and the regulator.
The PIA introduced a new regulatory framework for Nigeria’s petroleum industry and established NMDPRA as the regulator responsible for the midstream and downstream sectors.
The authority is expected to regulate activities in those sectors while also ensuring security of supply and encouraging a competitive market.