Court Orders NMDPRA To Grant Fuel Import Licences To Three Marketers

The Federal High Court in Abuja has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority to continue granting petroleum products import licences to Matrix Energy, AA Rano and AYM Shafa.

Justice Inyang Ekwo, in his judgment on Monday, held that the NMDPRA’s refusal to issue or renew the licences of the three oil marketers was inconsistent with the provisions of the Petroleum Industry Act, 2021.

The judge said the regulatory authority’s actions amounted to non-compliance with the law, noting that any exercise concerning import licences carried out contrary to the relevant provisions was liable to be declared null and void.

Justice Ekwo ruled that the three companies had successfully established their claims against the NMDPRA and were entitled to the reliefs sought in the suit.

He further held that provisions of the Petroleum Industry Act, read alongside Section 72 of the Federal Competition and Consumer Protection Act, require the NMDPRA to promote competition in the midstream and downstream petroleum sectors.

According to the court, the regulatory framework also requires the authority to prevent abuse of dominant market positions and restrictive business practices in the sector.

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The judge consequently ordered the NMDPRA to continue granting, issuing, extending, renewing or reissuing licences, permits and authorisations for midstream and downstream operations, particularly petroleum products importation.

However, the court made the order subject to the three companies meeting all applicable statutory and regulatory requirements.

The suit followed the NMDPRA’s refusal to grant or renew petroleum products import licences for the affected companies.

Counsel to the oil marketers, Raji Ahmed, SAN, and Chris Ekemezie, had argued that the Petroleum Industry Act does not prohibit petroleum products importation into Nigeria or prevent the regulator from granting licences to eligible importers.

The lawyers also maintained that the law does not bar the renewal of such licences where the required conditions are met.