Court Rules NMDPRA’s Refusal to Issue Fuel Import Licences Unlawful

Alex Enumah in Abuja

A Federal High Court in Abuja has held that the refusal of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to issue licenses to oil marketing companies for the importation of fuel is against the Petroleum Industry Act (PIA).

The court subsequently ordered the NMDPRA to “continue to grant” petroleum products import licences to three major oil marketers; Matrix Energy, AA Rano, and AYM Shafa, and in line with relevant laws.

Delivering judgment in the suit filed by the three oil firms yesterday the trial judge held that the NMDPRA’s refusal to issue licences to the three oil marketers was in “direct non-compliance” with the PIA.

In the suit filed by their team of lawyers led by Mr Ahmed Raji (SAN) the plaintiffs had sought a declaration that the regime of the PIA, 2021, does not outlaw or ban the importation of petroleum products into Nigeria, nor does it preclude or prohibit the NMDPRA from granting licences to eligible importers or renewing such licences for the importation of petroleum products into Nigeria.

The Executive Director of A.A. Rano Nigeria Limited, Saidu Mahuta, in an affidavit deposed to in support of the suit, stated that since July 2025 the NMDPRA had at best granted, issued, extended, renewed, or reissued petroleum products import licences, permits, or authorisations to the plaintiffs only sporadically, instead of regularly.

He added that the authority’s action and/or inaction was entrenching market dominance and monopolisation of the downstream sector by local refineries.

“Collectively, the Plaintiffs have invested more than $20,000,000 in infrastructure, logistics and retail networks for the smooth operations of their licensed petroleum products businesses,” he stated.

Raji also urged the court to hold that the importation of petroleum products alongside local production of the same would engender competition, check monopoly and price-fixing, among other things, and lead to the overall improvement of the midstream and downstream sector of the petroleum industry.

Responding, the court stated that the actions of the NMDPRA “are in direct non-compliance with the PIA,” adding that the authority is acting beyond the provisions of the law.

He held that the “consequence of non-compliance” with the PIA and relevant laws makes any exercise by the authority in respect of import licences “null and void.”

The judge subsequently held that the plaintiffs had successfully established their claim against the NMDPRA, adding that the case succeeded on its merits.

The judge declared that the provisions of Sections 31(a), (d), (l), Section 32(l), (s), (c), (u), (aa), (ii), (jj), and Section 211 of the Petroleum Industry Act, 2021, read together with the provisions of Section 72 of the Federal Competition and Consumer Protection Act (FCCPA), obligate, mandate, constrain, or compel the NMDPRA to promote a competitive market for midstream and downstream petroleum operations and to prevent the abuse of dominant positions and restrictive business practices with regard thereto.

The judge also declared that the plaintiffs, upon fulfilment of the conditions stipulated by the defendant for the grant of petroleum products import licences, are entitled to the issuance or grant of same and/or extension or renewal of such import licences by the defendant.

“A declaration that by the provisions of the Petroleum Industry Act, 2021, particularly, Sections 29(3), 32(a)–(uu) & 33(a)–(w) thereof, the regulation of the midstream and downstream operations of the Petroleum Industry, especially, the power to grant, issue, modify, extend, renew, suspend, cancel, reissue or terminate licences, permits and authorisations for midstream and downstream operations is vested in the Defendant only.”

The judge specifically granted the order directing the NMDPRA to continue to grant, issue, extend, renew, or reissue all licences, permits, and authorisations for midstream and downstream operations, particularly as they relate to the importation of petroleum products, to the plaintiffs upon fulfilment of all statutory and/or regulatory preconditions for same.