Justice Inyang Ekwo of the Federal High Court in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing petroleum products import licences to three major oil marketers — Matrix Energy, AA Rano and AYM Shafa — in accordance with applicable laws.
Delivering judgment, Justice Ekwo held that the NMDPRA’s refusal to issue or renew import licences for the three companies was in “direct non-compliance” with the provisions of the Petroleum Industry Act (PIA).
The case arose from the authority’s refusal to issue or renew petroleum products import licences sought by the plaintiffs.
Justice Ekwo held that the NMDPRA’s actions were inconsistent with the PIA and that any exercise of its powers relating to import licences that failed to comply with the law would be “null and void.”
The judge consequently held that the plaintiffs had established their claims against the regulatory authority and that the case succeeded on its merits.
The court declared that various provisions of the Petroleum Industry Act 2021, read alongside Section 72 of the Federal Competition and Consumer Protection Act (FCCPA), require the NMDPRA to promote a competitive market for midstream and downstream petroleum operations and prevent the abuse of dominant positions and restrictive business practices.
Justice Ekwo further held that the three companies were entitled to the issuance, extension or renewal of petroleum products import licences upon satisfying the statutory and regulatory conditions set by the NMDPRA.
The court specifically ordered the authority to continue to grant, issue, extend, renew or reissue licences, permits and authorisations for midstream and downstream petroleum operations, particularly those relating to the importation of petroleum products, provided the companies meet all applicable statutory and regulatory requirements.
Oil marketers’ position
In their submissions, counsel to the three companies, Raji Ahmed, SAN, and Chris Ekemezie, argued that the Petroleum Industry Act does not prohibit the importation of petroleum products into Nigeria.
They also argued that the law does not prevent the NMDPRA from granting or renewing import licences for eligible companies seeking to bring petroleum products into the country.
The legal challenge centred on the marketers’ contention that the regulator’s licensing decisions must comply with the provisions of the PIA and other applicable competition laws.
