The Federal High Court in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority to continue granting, renewing and reissuing petroleum-product import licences to three major oil-marketing companies where they meet applicable statutory and regulatory requirements.
Justice Inyang Ekwo made the order in proceedings instituted by Matrix Energy, A.A. Rano Nigeria Limited and AYM Shafa Limited.
The court held that refusal by the NMDPRA to issue or renew qualifying import licences in the circumstances before it would be inconsistent with the Petroleum Industry Act 2021.
Court documents reviewed by Reuters confirm that the action was filed in June and challenged the regulator’s handling of fuel-import licences.
The judge ordered the regulator to continue to grant, issue, extend, renew or reissue relevant licences, permits and authorisations connected with petroleum imports, subject to the companies satisfying statutory and regulatory conditions.
The marketers had argued that the PIA does not impose a blanket prohibition on importing petroleum products into Nigeria and does not prevent the NMDPRA from licensing eligible importers.
Justice Ekwo also considered provisions governing market competition.
The court held that relevant provisions of the PIA, considered alongside Section 72 of the Federal Competition and Consumer Protection Act, imposed obligations connected with fostering competition and preventing restrictive market practices.rf
The companies told the court that they had collectively invested more than $20 billion in infrastructure, logistics and retail networks supporting their petroleum businesses. Reuters separately confirmed that this investment figure formed part of the marketers’ case.
Judgment arrives amid Dangote litigation
The decision is particularly significant because another major fuel-import dispute remains pending before the Federal High Court in Lagos.
Dangote Petroleum Refinery is challenging the continued issuance and renewal of petroleum-product import licences to NNPC Limited and other marketers.
In that case, Dangote argues, among other issues, that continued importation in circumstances where domestic supply is available conflicts with its interpretation of Section 317(9) of the Petroleum Industry Act.
The Lagos action involves licences connected with operators including NNPC, NIPCO, A.A. Rano, Matrix, Shafa, Pinnacle and Bono.
The refinery has also alleged that some licences were issued or renewed contrary to an earlier status-quo order in its pending action. Those claims remain before the court and should not be treated as finally determined.
The Abuja judgment therefore does not itself dispose of the separate Dangote case.
Competition versus domestic refining
The competing cases have brought a difficult regulatory question to the centre of Nigeria’s downstream petroleum sector.
On one side is the argument that imports preserve competition, supply flexibility and consumer choice.
On the other is the argument that unrestricted importation can undermine significant domestic refining investment where sufficient locally refined products are already available.
Petroleum marketers have welcomed the Abuja judgment, arguing that multiple sources of supply could support price competition and product availability.
Domestic refinery operators and some sector analysts have instead called for import controls to be increasingly tied to actual domestic supply shortfalls.
Legally, the immediate effect of Justice Ekwo’s judgment is narrower: the NMDPRA must exercise its licensing authority in accordance with the PIA and cannot arbitrarily refuse eligible applications where statutory requirements are met.
The broader policy dispute over how much petroleum Nigeria should import while its domestic refining capacity expands remains unresolved.
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