The Federal High Court in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue granting petrol import licences to Matrix Energy, AA Rano and AYM Shafa, provided the companies meet the required legal and regulatory conditions.
Justice Inyang Ekwo ruled that the regulator’s refusal to issue or renew licences for the three marketers was inconsistent with provisions of the Petroleum Industry Act (PIA), which governs Nigeria’s oil and gas sector.
The court also held that the regulator had acted beyond the powers provided by law in refusing the companies’ applications.
Justice Ekwo said any regulatory action taken in violation of the relevant provisions of the law would be “null and void.”
The case arose from the marketers’ challenge to the NMDPRA’s refusal to regularly issue or renew their petrol import licences.
Their lawyers, Raji Ahmed, SAN, and Chris Ekemezie, argued that the Petroleum Industry Act does not prohibit the importation of petroleum products into Nigeria or prevent the regulator from granting licences to qualified importers.
The court agreed that eligible companies should be able to obtain, extend or renew import licences once they satisfy the conditions set by the regulator.
Court emphasises competition in petrol market
Justice Ekwo also referred to Sections 31 and 32 of the Petroleum Industry Act alongside Section 72 of the Federal Competition and Consumer Protection Act.
He said the provisions require the regulator to promote competition within Nigeria’s midstream and downstream petroleum sectors while preventing abuse of dominant market positions and restrictive business practices.
The judge further stated that the NMDPRA has the authority to grant, issue, modify, extend, renew, suspend, cancel and reissue licences, permits and other authorisations covering midstream and downstream petroleum activities.
The regulator was consequently directed to continue processing and granting relevant licences, including those for petroleum product imports, where applicants meet all statutory and regulatory requirements.
Marketers cite billions of dollars in investment
In an affidavit submitted to the court, Sabiu Saidu Mahuta, executive director of A.A. Rano Nigeria, said the NMDPRA had only issued or renewed import licences for the three companies intermittently since July 2025.
He argued that the regulator’s actions were contributing to increased market concentration and strengthening the position of local refineries in the downstream sector.
Mahuta also highlighted the companies’ investments in their businesses.
“Collectively, the Plaintiffs have invested more than $20,000,000,000,” he said, referring to investments in infrastructure, logistics and retail networks.
The $20 billion figure is the plaintiffs’ own claim contained in the affidavit and was not independently verified by the court record.
The marketers’ legal team argued that allowing petroleum imports alongside locally refined products would encourage competition, discourage monopoly and price-fixing, and support the development of Nigeria’s midstream and downstream petroleum markets.
Ruling comes amid Dangote import dispute
The decision comes amid a wider legal dispute over the continued issuance of petrol import licences as the Dangote refinery increases domestic production.
Dangote Petroleum Refinery has separately challenged petrol import licences issued to marketers and the NNPC, arguing that continued imports could undermine domestic refining. The refinery’s case is scheduled to return to court on October 7, 2026. (Nairametrics)
Meanwhile, the NMDPRA recently approved permits allowing six marketers to import a combined 830,000 metric tonnes of petrol during the fourth quarter of 2026. The authority said the approvals were intended to prevent supply shortages during the end-of-year period. (Businessday NG)
The latest Abuja ruling therefore adds another development to the ongoing debate over how Nigeria should balance domestic refining with imported petroleum products and maintain competition in the fuel market.
It remains unclear whether the NMDPRA will comply with the ruling, seek a stay of execution or appeal the decision.
