Court Orders NMDPRA to Issue Fuel Licences to Marketers

The Federal High Court in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to “continue to grant” petroleum import licences to Matrix Energy, AA Rano, and AYM Shafa.

Delivering judgment on Monday, Justice Inyang Ekwo ruled that the regulator’s refusal to issue and renew import permits to the three major oil marketers directly violated the Petroleum Industry Act (PIA) 2021.

He declared the NMDPRA’s actions “null and void,” affirming that the PIA does not ban fuel imports or prohibit the authority from granting licences to eligible importers.

The court established that the statutory provisions of the PIA, alongside Section 72 of the Federal Competition and Consumer Protection Act, explicitly compel the regulator to foster a competitive midstream and downstream market while curbing monopolies.

Counsel for the marketers, Raji Ahmed, SAN, and Chris Ekemezie, Esq., successfully argued that allowing imports alongside local refining checks price-fixing and prevents market dominance.

The judgment follows disclosures by Sabiu Saidu Mahuta, Executive Director of A.A. Rano, who revealed in an affidavit that the NMDPRA had issued licences only sporadically since July 2025, threatening the marketers’ combined $20 billion investment in infrastructure, logistics, and retail networks.

The lawsuit unfolds against a backdrop of shifting energy dynamics, as recent NMDPRA data indicates Nigeria’s petrol imports fell sharply in early 2026 amid rising domestic output from local refineries.

However, Justice Ekwo emphasised that the NMDPRA retains sole regulatory jurisdiction under the PIA to issue, renew, or extend permits and must grant authorisations to qualified applicants upon their fulfilment of statutory conditions.