The Federal High Court in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue granting and renewing petroleum products import licences for Matrix Energy, A.A. Rano and AYM Shafa.
Justice Inyang Ekwo, in a judgment delivered on Monday, ruled that the NMDPRA’s refusal to issue or renew the licences for the three companies amounted to “direct non-compliance” with the Petroleum Industry Act (PIA).
The judge held that the regulator could not exercise its statutory powers outside the provisions of the law, stressing that any action taken in violation of the PIA and other applicable legislation would be “null and void.”
The three companies had approached the court through their counsel, Raji Ahmed, SAN, and Chris Ekemezie, seeking declarations that the PIA neither prohibits petroleum products importation nor prevents the NMDPRA from granting or renewing import licences to qualified operators.
Delivering judgment, Justice Ekwo said the plaintiffs had successfully established their case and that the suit therefore succeeded on its merits.
The court also held that several provisions of the PIA, including Sections 31(a), (d), (l), 32(l), (s), (c), (u), (aa), (ii), (jj) and 211, read together with Section 72 of the Federal Competition and Consumer Protection Act, impose obligations on the NMDPRA to promote competition in Nigeria’s midstream and downstream petroleum sectors.
According to the court, the provisions require the regulator to prevent the abuse of dominant market positions and restrictive business practices.
Justice Ekwo consequently directed the NMDPRA to continue granting, issuing, extending, renewing or reissuing licences, permits and authorisations for midstream and downstream petroleum operations, particularly for the importation of petroleum products, to Matrix Energy, A.A. Rano and AYM Shafa.
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The order, however, is subject to the companies meeting all applicable statutory and regulatory requirements.
In an affidavit filed before the court, Sabiu Mahuta, Executive Director of A.A. Rano Nigeria Limited, alleged that the NMDPRA had, since July 2025, only sporadically granted, extended, renewed or reissued petroleum products import licences to the three companies.
Mahuta claimed that the regulator’s actions were contributing to market dominance and the monopolisation of the downstream petroleum sector by local refineries.
He further stated that the three companies had collectively invested more than $20 billion in infrastructure, logistics and retail networks for their petroleum businesses.
Counsel to the plaintiffs, Raji, urged the court to recognise that continued petroleum products importation alongside local production would promote competition, curb monopoly and price-fixing, and improve efficiency in the midstream and downstream petroleum market.
The NMDPRA also defended its position through its legal team during the proceedings.
The ruling comes amid ongoing disputes over petroleum products imports and the growing role of domestic refineries in Nigeria’s downstream market.
On March 25, the NMDPRA relaxed restrictions on petrol imports by granting a fresh batch of licences to local marketers. Two months later, Dangote Refinery filed a separate suit at the Federal High Court in Lagos challenging import licences issued or renewed by the regulator for petroleum marketers.
The NMDPRA subsequently issued another batch of import licences on September 23.
Despite the issuance of new licences, the regulator said Nigeria’s average daily petrol imports fell by 26 per cent to 14.6 million litres in August.
