The Federal High Court in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue granting, issuing and renewing petroleum products import licences to Matrix Energy, AA Rano and AYM Shafa, subject to the companies meeting all statutory requirements.
Justice Inyang Ekwo gave the order while delivering judgment in a suit filed by the three oil marketers against the NMDPRA over the regulator’s refusal to issue or renew their import licences.
The judge held that the NMDPRA’s refusal to grant the licences was in direct non-compliance with provisions of the Petroleum Industry Act (PIA), 2021.
Justice Ekwo said the authority’s actions went beyond the provisions of the law, stressing that any exercise relating to petroleum products import licences carried out in violation of the PIA was liable to be declared null and void.
According to him, the plaintiffs successfully established their claims against the regulatory authority, and the case therefore succeeded on its merits.
The court declared that relevant provisions of the PIA, read alongside Section 72 of the Federal Competition and Consumer Protection Act (FCCPA), require the NMDPRA to promote competition in Nigeria’s midstream and downstream petroleum sectors.
The provisions also require the regulator to prevent abuse of dominant positions and restrictive business practices within the industry.
Justice Ekwo further ruled that the three companies are entitled to the issuance, extension or renewal of petroleum products import licences after fulfilling the conditions stipulated by the NMDPRA.
Specifically, the court ordered the regulator to “continue to grant, issue, extend, renew, or reissue” licences, permits and authorisations for midstream and downstream petroleum operations to the plaintiffs, particularly those relating to petroleum products importation.
The judge, however, made the entitlement subject to the companies satisfying all applicable statutory and regulatory preconditions.
The judgment followed a legal challenge by Matrix Energy, AA Rano and AYM Shafa over the NMDPRA’s refusal to issue and renew their petroleum products import licences.
The companies had argued that the Petroleum Industry Act does not prohibit the importation of petroleum products or prevent the NMDPRA from licensing eligible importers.
Their lawyers, Raji Ahmed, SAN, and Chris Ekemezie, Esq., had sought a declaration that the PIA does not outlaw or ban petroleum products importation into Nigeria.
They also asked the court to affirm that the law does not preclude the NMDPRA from granting or rene
