Court Orders NMDPRA to Keep Issuing Fuel Import Licences to Major Oil Marketers

The Federal High Court in Abuja has told the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to keep issuing and renewing fuel import licences to three major oil marketers. The court said the regulator's refusal to do this is against the Petroleum Industry Act (PIA).

Justice Inyang Ekwo gave the ruling on Monday. The judge noted that the NMDPRA's refusal to grant or renew import licences for Matrix Energy, AA Rano, and AYM Shafa was in "direct non-compliance" with the PIA, according to Nairametrics.

The judge directed the regulator to continue granting, issuing, extending, renewing, or reissuing licences, permits, and authorisations for midstream and downstream petroleum operations. This includes the importation of petroleum products, as long as the companies meet all necessary requirements.

This ruling came after the three oil marketers filed a case in June. They challenged the NMDPRA’s refusal to regularly issue or renew their import licences.

The companies' lawyers, Raji Ahmed, a Senior Advocate of Nigeria, and Chris Ekemezie, argued that the PIA does not stop the importation of petroleum products into Nigeria. They also said it does not stop the regulator from giving licences to eligible importers.

While delivering the judgement on Monday, Mr Ekwo stated that the NMDPRA’s refusal to issue and renew the licences went against the PIA. He said the authority acted beyond its legal limits.

The judge ruled that any regulatory actions about import licences that violate the PIA and other laws are "null and void". He also said the plaintiffs proved their claims against the regulator.

In a significant part of the ruling, the court said Sections 31, 32, and other important parts of the PIA, along with Section 72 of the Federal Competition and Consumer Protection Act, require the NMDPRA to support competition in the midstream and downstream petroleum sectors.

These laws also require the regulator to prevent any abuse of strong market positions and unfair business practices.

The court further stated that the three oil marketers have the right to get their import licences issued, extended, or renewed if they meet the conditions set by the NMDPRA.

However, the judge made it clear that the authority still has the exclusive power to grant, change, extend, renew, suspend, cancel, or end licences and permits for midstream and downstream petroleum operations.

In an affidavit filed on 26 June to support the case, Sabiu Saidu Mahuta, executive director of AA Rano Nigeria Limited, said the NMDPRA has only been issuing, extending, or renewing import licences for the three companies occasionally since July 2025.

He claimed that the regulator's actions were helping a few local refineries dominate the market.

Mr Mahuta also pointed out that the three companies have invested over $20 billion in infrastructure, logistics, and retail networks to support their petroleum businesses.

"Collectively, the plaintiffs have invested more than $20,000,000,000 [Twenty Billion United States of America Dollars] in infrastructure, logistics, and retail networks for the smooth operations of their licensed petroleum products businesses," he stated.

The companies argued that allowing petroleum imports alongside local refining would help competition, stop monopolistic practices, and improve Nigeria’s petroleum sectors.

Their lawyer, Mr Raji, urged the court to confirm that petroleum imports are legal and that the regulator must issue licences to qualified operators.

This ruling comes as part of a legal fight over petrol import licences in Nigeria. This is especially important after the Dangote Refinery increased its domestic refining capacity.

Dangote Refinery has claimed in another case that continuing to issue petroleum products import licences goes against Nigerian law. According to them, imports are only allowed when local refineries cannot meet domestic needs.

The refinery has recently filed a new N100 billion case against the Attorney-General of the Federation at the Federal High Court in Lagos over the ongoing issuance of import licences.

Matrix Energy, AA Rano, and AYM Shafa have also asked to join that case. The matter is still before the court.

The latest ruling in Abuja, however, clarifies the rights of the three oil marketers to obtain import licences from the NMDPRA, as long as they meet the relevant legal requirements.