Court directs NMDPRA to grant import licences to Matrix Energy, AA Rano, AYM Shafa

Justice Inyang Ekwo of 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 three major oil marketers.

The affected companies are Matrix Energy, AA Rano and AYM Shafa.

In his judgment, Justice Ekwo held that the NMDPRA’s refusal to issue the companies the licences was in direct non-compliance with provisions of the Petroleum Industry Act (PIA).

The judge noted that the case arose from the regulatory agency’s refusal to issue and renew petroleum products import licences for the three oil marketers.

Justice Ekwo consequently directed the NMDPRA to continue granting the relevant licences to the companies in accordance with the provisions of the law.

The judgment comes amid ongoing developments in Nigeria’s petroleum sector, particularly over the regulation of fuel imports and the role of local refining in meeting domestic demand.

According to the judge, the actions of the NMDPRA “are in direct non-compliance with the PIA,” adding that the authority is acting beyond the provisions of the law.

He held that the “consequence of non-compliance” with the PIA and relevant laws makes any exercise by the authority in respect of import licences “null and void.”

The judge subsequently held that the plaintiffs had successfully established their claim against the NMDPRA, adding that the case succeeded on its merits.

The judge declared that the provisions of Sections 31(a), (d), (l), Section 32(l), (s), (c), (u), (aa), (ii), (jj), and Section 211 of the Petroleum Industry Act, 2021, read together with the provisions of Section 72 of the Federal Competition and Consumer Protection Act (FCCPA), obligate, mandate, constrain, or compel the NMDPRA to promote a competitive market for midstream and downstream petroleum operations and to prevent the abuse of dominant positions and restrictive business practices with regard thereto.

The judge also declared that the plaintiffs, upon fulfilment of the conditions stipulated by the defendant for the grant of petroleum products import licences, are entitled to the issuance or grant of same and/or extension or renewal of such import licences by the defendant.

The judge specifically granted the order directing the NMDPRA to continue to grant, issue, extend, renew, or reissue all licences, permits, and authorisations for midstream and downstream operations, particularly as they relate to the importation of petroleum products, to the plaintiffs upon fulfilment of all statutory and/or regulatory preconditions for same.

Among other reliefs, the lawyers to the three companies, Raji Ahmed, SAN, and Chris Ekemezie, Esq., sought a declaration that the regime of the Petroleum Industry Act, 2021, does not outlaw or ban the importation of petroleum products into Nigeria and neither does it preclude or prohibit the NMDPRA from granting licences to eligible importers or renewing same for the importation of petroleum products into Nigeria.

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