ABUJA — 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 oil marketers.
The companies covered by the ruling are Matrix Energy, AA Rano and AYM Shafa.
Justice Inyang Ekwo issued the order while delivering judgment in a suit filed by the three marketers against the NMDPRA.
The court found that the regulator’s refusal to issue or renew import licences for the companies was inconsistent with provisions of the Petroleum Industry Act (PIA) 2021.
The marketers had asked the court to declare that the PIA does not prohibit petroleum product imports into Nigeria or prevent the NMDPRA from issuing or renewing licences for companies that meet the required conditions.
Delivering judgment, Justice Ekwo said the case arose from the NMDPRA’s refusal to issue or renew the petroleum import licences sought by the plaintiffs.
The judge held that the authority’s actions were not in compliance with the PIA and that it had acted beyond the powers provided under the law.
The court further ruled that any action by the NMDPRA concerning import licences that does not comply with the PIA and other applicable laws would be considered “null and void.”
Justice Ekwo said the three companies had successfully established their claims against the regulatory authority and ruled in their favour.
The court also declared that several provisions of the PIA, including Sections 31(a), (d), (l), 32(l), (s), (c), (u), (aa), (ii), (jj), and 211, when read alongside Section 72 of the Federal Competition and Consumer Protection Act (FCCPA), require the NMDPRA to promote competition within Nigeria’s midstream and downstream petroleum sector.
According to the court, the provisions also require the regulator to prevent the abuse of dominant market positions and restrictive business practices within the petroleum industry.
The court consequently held that Matrix Energy, AA Rano and AYM Shafa are entitled to the issuance, extension or renewal of their petroleum products import licences once they satisfy the conditions set by the NMDPRA.
