The Federal High Court in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority to continue granting petroleum products import licences to Matrix Energy, AA Rano and AYM Shafa, provided they meet the relevant legal requirements.
Justice Inyang Ekwo gave the order while delivering judgment in a suit filed by the three oil marketers against the regulatory authority over its refusal to issue or renew their import licences.
The judge held that the NMDPRA’s actions amounted to non-compliance with the Petroleum Industry Act, adding that the authority had acted beyond the provisions of the law.
According to him, the authority’s failure to comply with the Act rendered any action concerning the import licences null and void.
Justice Ekwo ruled that the three companies had successfully established their case against the NMDPRA, adding that the suit succeeded on its merits.
The judge declared that Sections 31(a), (d) and (l), Section 32(l), (s), (c), (u), (aa), (ii) and (jj), as well as Section 211 of the Petroleum Industry Act, 2021, read alongside Section 72 of the Federal Competition and Consumer Protection Act, require the regulator to promote competition in the midstream and downstream petroleum sectors.
He said the provisions also mandate the authority to prevent the abuse of dominant market positions and restrictive business practices.
The court further declared that the three companies were entitled to the issuance, extension or renewal of their petroleum import licences, provided they fulfilled the conditions set by the NMDPRA.
Justice Ekwo specifically ordered the authority to continue granting, issuing, extending, renewing or reissuing licences, permits and authorisations for midstream and downstream operations, particularly those relating to petroleum products imports, once the companies meet all statutory and regulatory requirements.
Oil marketers’ legal arguments
The lawyers representing the three companies, Raji Ahmed, SAN, and Chris Ekemezie, had sought several reliefs, including a declaration that the Petroleum Industry Act does not prohibit the importation of petroleum products into Nigeria.
They argued that the Act neither bans petroleum imports nor prevents the NMDPRA from issuing or renewing licences for eligible importers.
The lawyers also sought a declaration that the authority could not lawfully refuse to grant or renew licences to companies that met the applicable requirements.
The court’s judgment addresses the dispute over the authority’s refusal to issue and renew the companies’ import licences, while making the grant of future licences subject to compliance with statutory and regulatory conditions.