The Federal High Court sitting in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority to continue granting, issuing, extending and renewing petroleum products import licences to Matrix Energy, AA Rano and AYM Shafa, provided the companies satisfy all applicable statutory and regulatory requirements.
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Justice Inyang Ekwo delivered the judgment on Monday, holding that the NMDPRA’s refusal to regularly issue or renew import licences for the three oil marketers was in “direct non-compliance” with the Petroleum Industry Act, 2021.
The court held that the Petroleum Industry Act does not prohibit the importation of petroleum products into Nigeria and does not prevent the downstream regulator from granting licences to qualified operators.
The judgment followed a suit instituted in June by Matrix Energy, AA Rano and AYM Shafa challenging the manner in which the regulator had handled their applications for petroleum products import licences.
The companies, represented by Ahmed Raji, SAN, alongside other counsel, argued that the PIA permits petroleum imports and requires the regulator to administer the downstream sector in a manner that promotes competition rather than entrenches market dominance.
Justice Ekwo agreed that the regulator could not exercise its statutory powers outside the provisions of the PIA.
He held that any exercise of NMDPRA’s powers over petroleum import licences that violates the PIA and other applicable laws would be null and void.
The court subsequently held that the three companies had established their case against the regulator.
Justice Ekwo relied, among other provisions, on Sections 31 and 32 of the Petroleum Industry Act, read together with Section 72 of the Federal Competition and Consumer Protection Act.
The court held that the provisions require the NMDPRA to promote competition in midstream and downstream petroleum operations and prevent the abuse of dominant market positions and restrictive business practices.
It further declared that Matrix Energy, AA Rano and AYM Shafa are entitled to the issuance, extension or renewal of petroleum products import licences once they fulfil the conditions prescribed by the regulator.
The court consequently directed the NMDPRA to continue granting, issuing, extending, renewing or reissuing licences, permits and other authorisations for midstream and downstream petroleum operations, particularly those relating to petroleum products imports, where the companies satisfy the statutory and regulatory preconditions.
The judgment, however, did not strip the NMDPRA of its regulatory authority.
Justice Ekwo affirmed that the regulator retains its statutory powers to grant, modify, extend, renew, suspend, cancel or terminate licences and permits governing midstream and downstream petroleum operations.
The effect of the decision is therefore that those powers must be exercised within the framework of the PIA and other relevant laws rather than through a blanket or otherwise unlawful refusal to issue licences to eligible operators.
The dispute arose after the marketers complained that since July 2025 the NMDPRA had issued, extended or renewed their petroleum import licences only sporadically.
In an affidavit supporting the action, AA Rano Executive Director Sabiu Saidu Mahuta alleged that the regulator’s conduct was contributing to market dominance and monopolisation by local refining interests.
He stated that the three plaintiffs had collectively invested more than $20 billion in infrastructure, logistics and retail networks supporting their petroleum businesses.
“Collectively, the plaintiffs have invested more than $20,000,000,000 in infrastructure, logistics and retail networks for the smooth operations of their licensed petroleum products businesses,” he stated.
The marketers argued that allowing imports to operate alongside domestic refining would encourage competition, reduce the risk of monopoly and price-fixing and strengthen the performance of Nigeria’s midstream and downstream petroleum industry.
The ruling comes amid a wider legal and commercial dispute over the extent to which Nigeria should continue importing refined petroleum products as domestic refining capacity expands.
Dangote Petroleum Refinery has taken a different position in separate proceedings, arguing that petroleum product import licences should only be issued where domestic refineries cannot adequately meet local demand.
The refinery has instituted a fresh N100 billion action at the Federal High Court in Lagos challenging the continued issuance of import licences and naming the Attorney-General of the Federation in the litigation.
Matrix Energy, AA Rano and AYM Shafa have applied to join that separate case.
That matter remains pending and was reported to have been fixed for further proceedings in October. The Abuja judgment does not determine the pending Lagos action; it specifically concerns the rights of the three marketers to obtain import licences from the NMDPRA when they satisfy the statutory requirements.
The legal controversy comes against changing supply patterns in Nigeria’s petroleum market as output from domestic refineries increases.
Recent NMDPRA data showed a significant rise in domestic petrol supply alongside a decline in imports.
Average daily Premium Motor Spirit receipts reportedly increased from 45.5 million litres per day in July 2026 to 50.5 million litres per day in August, an increase of about 11 per cent.
Domestic PMS receipts rose from 25.8 million litres per day to 35.9 million litres per day, representing an increase of about 39 per cent.
Imported PMS, meanwhile, declined from 19.7 million litres per day in July to 14.6 million litres per day in August, a fall of about 26 per cent.
The shift has intensified debate over the balance between supporting domestic refining capacity and maintaining competition and supply security through regulated imports.
Despite that decline in imported petrol, the NMDPRA recently approved new petrol import permits covering about 830,000 metric tonnes for several companies ahead of the fourth quarter of 2026.
NMDPRA spokesperson George Ene-Ita confirmed that the permits were approved to prevent supply shortages during the end-of-year period.
“Yes, petrol import permits were approved for Q4 2026 to ensure there’re no supply gaps heading into the critical end-of-year period,” he said.
Companies reported to have received permits included Matrix Energy, AA Rano, AYM Shafa, NIPCO, Pinnacle Oil and Bono Energy. The approvals were reportedly issued on September 18.
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