Court Orders NMDPRA to Restore Import Licences for Matrix, AA Rano, AYM Shafa

By Taibat Ummi Yakubu

A Federal High Court sitting in Abuja has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing and renewing petroleum product import licences for three major oil marketing firms, Matrix Energy, AA Rano Nigeria Limited and AYM Shafa Limited after ruling that the regulator’s actions were inconsistent with provisions of the Petroleum Industry Act (PIA).

Delivering judgment on Monday, Justice Inyang Ekwo held that the refusal or failure of the NMDPRA to grant and renew import permits for the companies amounted to a breach of the law governing Nigeria’s petroleum sector.

The case was brought before the court by the three firms through their legal representatives, Raji Ahmed (SAN) and Chris Ekemezie, who argued that the Petroleum Industry Act does not prohibit the importation of petroleum products into Nigeria. They maintained that the law also does not prevent the NMDPRA from issuing or renewing licences for qualified importers.

In his ruling, Justice Ekwo agreed with the companies, stating that the authority is legally required to act within the framework of the PIA and other relevant laws when handling applications for import licences.

The judge noted that any action taken outside those legal provisions could be rendered invalid, stressing that the plaintiffs had successfully proven their case and were entitled to the reliefs sought.

The court further declared that several provisions of the Petroleum Industry Act, when read together with the Federal Competition and Consumer Protection Act (FCCPA), place a duty on the NMDPRA to encourage competition in Nigeria’s midstream and downstream petroleum sectors while preventing monopolistic practices and abuse of market dominance.

Justice Ekwo also ruled that companies that satisfy all regulatory and statutory conditions for petroleum import licences are entitled to receive them, including renewals and extensions where applicable.

The judgment reaffirmed that the authority to grant, renew, suspend, modify or revoke licences for midstream and downstream petroleum operations rests solely with the NMDPRA under the Petroleum Industry Act.

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Consequently, the court ordered the regulator to continue granting, issuing, extending, renewing and reissuing licences and permits related to petroleum product imports for the affected companies whenever they meet all prescribed requirements.

Court documents showed that the companies accused the regulator of issuing import licences only occasionally since July 2025 rather than on a consistent basis.

In an affidavit filed before the court, Sabiu Saidu Mahuta, Executive Director of AA Rano Nigeria Limited, argued that the regulator’s approach was creating an uneven playing field and strengthening the dominance of local refineries in the downstream market.

He stated that the three companies had collectively invested more than $20 billion in petroleum infrastructure, logistics and retail operations across the country and required regular access to import licences to sustain their businesses.

The marketers also argued that allowing petroleum imports alongside local refining would promote healthy competition, discourage monopoly, reduce the risk of price manipulation and ultimately improve efficiency in the sector.

The NMDPRA contested the suit and filed its defence before the court, but the judgment ultimately went in favour of the oil marketers.

The ruling comes at a time when Nigeria’s petroleum import profile is undergoing major changes. Recent figures released by the NMDPRA indicated that petrol imports declined significantly during the first quarter of 2026 as output from domestic refineries increased, with local plants supplying about 3.18 billion litres of fuel within the period.

The court’s decision is expected to reignite debate over the balance between supporting local refining capacity and maintaining an open, competitive fuel market in Africa’s largest oil-producing nation.