Amanze Chinonye
Nigeria’s Federal High Court in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue granting, renewing and extending petroleum-product import licences to Matrix Energy, A.A. Rano and AYM Shafa, subject to compliance with statutory and regulatory requirements, Prime Business Africa reports.
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Justice Inyang Ekwo, delivering judgment on Monday, held that the regulator’s refusal to issue or renew the companies’ licences was inconsistent with provisions of the Petroleum Industry Act (PIA) 2021.
“The consequences of non-compliance with the PIA and relevant laws make any exercise by the Authority in respect to import licences null and void,” Ekwo said.
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The court said sections 31, 32 and 211 of the PIA require the regulator to promote competition in the midstream and downstream petroleum sectors and prevent abuse of dominant market positions and restrictive business practices. It also cited relevant provisions of the Federal Competition and Consumer Protection Act.
Matrix Energy, A.A. Rano and AYM Shafa filed the lawsuit in June, challenging NMDPRA’s handling of their fuel import licences. The marketers told the court they had invested more than $20 billion in infrastructure, logistics and retail networks supporting their licensed fuel distribution businesses across Nigeria.
The court held that the companies were entitled to the issuance, extension or renewal of the relevant licences once they satisfy applicable statutory and regulatory conditions.
The ruling comes as Nigeria’s downstream petroleum market adjusts to increased domestic refining capacity while imported supplies remain part of the fuel market. NMDPRA recently approved about 830,000 metric tonnes of petrol imports for the fourth quarter of 2026, with Matrix Energy, A.A. Rano and AYM Shafa among six marketers granted import approvals.
NIPCO, Pinnacle Oil and Bono Energy were the other marketers approved to import petrol during the quarter.
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The judgment also comes amid a separate legal dispute involving Dangote Petroleum Refinery over the continued issuance of petroleum-product import licences. Dangote has argued that imports should be restricted where domestic production is sufficient, while NNPC and other industry participants have maintained that imports help preserve competition and reduce the risk of supply disruptions.
NMDPRA data showed that domestic petrol supply increased in August, with local refineries supplying about 35.9 million litres per day, up from 25.8 million litres per day in July. Petrol imports fell to about 14.6 million litres per day from 19.7 million litres per day over the same period.
This judgment does not give the three marketers an unrestricted right to import petroleum products. Their licences remain subject to compliance with applicable laws and regulatory requirements.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
