Energy Security: Court’s ordering NMDPRA to grant oil import licences to marketers conforms to PIA –Official

*The Federal High Court, in Abuja, in a ruling, found the decision of the Nigerian Midstream and Downstream Petroleum Regulatory Authority to block issuance or renewal of expired oil import licences for three oil marketing companies did not comply with extant provisions of the Petroleum Industry Act 2021

Gbenga Kayode | ConsumerConnect

In move to prevent market dominance and anti-competition practices in the midstream and downstream petroleum industry, the Federal High Court, in Abuja, FCT, 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, and other qualified oil companies.

ConsumerConnect reports Justice Inyang Ekwo handed down the order in his judgment in a suit filed by the three oil marketers against the NMDPRA.

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Hitherto, the upgraded over 650,000-barrel-per-day Dangote Petroleum’s Refinery, in Lagos, repeatedly, had advocated greater reliance on “locally refined petroleum products” rather than imported fuel.

Similarly, Dangote Refinery over the last few years, had pointedly challenged the Authority’s continued issuance and renewal of fuel import licences in court.

The private oil-refining facility has contended that such NMDPRA-issued licences should only be granted where domestic supply is obviously insufficient to meet Nigerian energy consumers’ demand.

However, the Federal High Court, in Abuja, in the ruling found that the NMDPRA’s decision to block issuance or renewal of expired oil import licences for the three companies did not comply with provisions of the Petroleum Industry Act (PIA), 2021.

Basic considerations for court judgement

It is noted that the court judgment has placed fresh emphasis on NMDPRA’s fundamental responsibility to promote “competition” and prevent market dominance in the midstream and downstream petroleum sector of the Nigerian economy.

More so, the judgement has come at a time when the continued importation of petrol remains the subject of a wider legal and commercial dispute involving major players in the West African country’s oil industry.

Earlier, the plaintiffs -Matrix Energy, A.A. Rano and AYM Shafa Limited – had approached the court through their lawyers, Raji Ahmed, SAN, and Chris Ekemezie, Esq.

The plaintiffs had sought several declarations concerning the interpretation and application of the sector’s Petroleum Industry Act.

The three oil companies, among other demands, asked the court to declare that the PIA does not prohibit the importation of petroleum products into Nigeria.

The trio of Matrix Energy, A.A. Rano and AYM Shafa Limited also sought a declaration that the PIA does not prevent NMDPRA from issuing or renewing import licences for companies that meet the necessary “regulatory requirements”.

Between PIA provisions and NMDPRA’s core responsibilities

The latest legal dispute between the fuel marketers and the Authority is said to have placed the interpretation of the Petroleum Industry Act at the centre of the disagreement between the refinery, petroleum marketers and the regulator.

It is noted the PIA introduced a new regulatory framework for Nigeria’s petroleum industry, and affirmed NMDPRA as the regulator responsible for the midstream and downstream sectors.

The Authority is thus expected to regulate activities in those sectors while ensuring energy security, and encouraging a competitive market in the industry.

Justice Ekwo, in his judgment, therefore, held that the case emanated from the industry regulator’s refusal to issue or renew the oil import licences of the plaintiffs.

The Judge noted that the actions of the Authority to not issue or renew the plaintiffs’ fuel import licences were “in direct non-compliance with the PIA”.

Justice Ekwo as well.emphasised that a regulatory decision must remain within the limits set by the law.

The 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 Judge subsequently, ruled in favour of the three companies, holding that they had successfully established their claims against the NMDPRA as the industry regulatory authority.

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Justice Ekwo equally referenced the relevant provisions of the PIA alongside Nigeria’s Federal Competition and Consumer Protection Act (FCCPA) 2018.

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.

The judgement indicated that the extant provisions impose responsibilities on NMDPRA, to promote competition within the midstream and downstream petroleum industry in the country.

According to the judgement, the provisions also require the regulator to guard against the abuse of “dominant market positions” and “restrictive business practices”.

Justice Ekwo, therefore, declared that Matrix Energy, A.A. Rano and AYM Shafa are entitled to the issuance, extension or renewal of their petroleum products import licences once they satisfy the conditions and requirements stipulated by NMDPRA.

It is, however, noted that the court ruling does not mean that the oil companies could 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.

It was gathered that the court judgement had come 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 (Q4) of this year.

The Authority had listed Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Bono Energy as the approved, qualified companies.

The NMDPRA approvals were issued September 18, 2026, according to report.

It was further noted the latest approvals followed earlier import allocations during the year as the regulator sought to prevent product “shortages” in the domestic oil market.

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Speaking on the development, George Ene-Ita, Spokesperson at NMDPRA, confirmed the Q4 2026 approvals, stating that they were intended to prevent “supply gaps”, especially during the end-of-year period.

Ene-Ita reportedly said: “Yes, petrol import permits were approved for Q4 2026 to ensure there’re no supply gaps heading into the critical end-of-year period.”

Industry observers, however, noted that continued issuance of oil import permits remains controversial, particularly in regard to the improving capacity of the Dangote Petroleum Refinery.

Although Dangote Refinery has challenged the continued issuance and renewal of fuel import licences in court.

Nonetheless, the Refinery’s current legal challenge is separate from the case decided by Justice Ekwo at the Federal High Court Abuja, report noted.

The leading oil-refining facility has stressed that that such licences should only be granted where domestic supply is insufficient to meet national demand.