The Federal High Court in Abuja has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue to grant petroleum products import licences to three major oil marketers.
Justice Inyang Ekwo gave the order on Monday in a judgment in favour of Matrix Energy, AA Rano and AYM Shafa, holding that the refusal of the NMDPRA to issue and renew their import licences was in direct noncompliance with the Petroleum Industry Act (PIA).
The court held that the action of the regulatory authority beyond the provisions of the law makes any exercise by it in respect of import licences null and void.
The suit was filed by the three marketers through their lead counsel, Ahmed Raji, SAN, along with Chris Ekemezie and Usman Mohammed Oloje.
They had sought a declaration that the Petroleum Industry Act 2021 does not outlaw or ban importation of petroleum products into Nigeria and does not preclude the NMDPRA from granting or renewing licences to eligible importers.
In his judgment, Justice Ekwo declared that Sections 31(a)(d)(l), 32(l)(s)(c)(u)(aa)(ii)(jj) and 211 of the Petroleum Industry Act 2021, read together with Section 72 of the Federal Competition and Consumer Protection Act, obligate the NMDPRA to promote a competitive market for midstream and downstream operations and to prevent abuse of dominant position and restrictive business practices.
The judge also declared that the plaintiffs, upon fulfilment of conditions stipulated for grant of petroleum products import licences, are entitled to issuance, extension or renewal of such licences.
He therefore ordered the NMDPRA to continue to grant, issue, extend, renew or reissue all licences, permits and authorisations for midstream and downstream operations, particularly relating to importation of petroleum products, to the plaintiffs upon fulfilment of all statutory and regulatory preconditions.
In an affidavit deposed to by Sabiu Saidu Mahuta, Executive Director of AA Rano Nigeria Limited, the marketers stated that since July 2025, the NMDPRA had only sporadically granted licences to them instead of regularly.
He said the action was entrenching market dominance and monopolisation of the downstream sector by local refineries and noted that collectively, the plaintiffs have invested more than $20,000,000,000 in infrastructure, logistics and retail networks for their licensed petroleum products businesses.
Raji had urged the court to hold that importation alongside local production would engender competition, check monopoly and price fixing and lead to overall improvement of the midstream and downstream sector.
Meanwhile, the National President of Petroleum Products Retail Outlets Owners Association of Nigeria, Dr Billy Gillis Harry, has called for an open and competitive petroleum products market to ensure affordable and transparent pricing.
Speaking at the 2026 Annual Conference of the Association of Energy Correspondents of Nigeria in Abuja, Gillis Harry commended the Dangote Petroleum Refinery for its investment but said other refiners and suppliers should be allowed to participate.
He said Nigeria cannot afford a situation where one company controls supply and cited the planned 25,000 barrels per day Azikel Refinery in Bayelsa as one of the emerging projects capable of contributing to domestic refining capacity.
According to him, competition among refineries and suppliers would help create market based pricing and give consumers access to affordable products.
He also called for stronger collaboration among upstream, midstream and downstream operators and disclosed that PETROAN has developed a Petroleum Quality Assurance and Quality Control and Price Intelligence System to track product volumes, quality and prices.
He said the association would continue to work with regulators including NMDPRA and the Federal Competition and Consumer Protection Commission to promote transparency and fair competition.
