Court Directs NMDPRA to Keep Granting Import Licences to Matrix Energy, Two Others

The Federal High Court in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue granting petroleum products import licences to three oil marketing companies: Matrix Energy, AA Rano and AYM Shafa.

Delivering judgment on Monday, Justice Inyang Ekwo held that the authority’s refusal to issue and renew the licences was in “direct non-compliance” with the Petroleum Industry Act (PIA) 2021. He said the NMDPRA had acted beyond the powers the law gives it.

The three companies filed the suit against the NMDPRA. In an affidavit filed on 26 June in support of the case, Sabiu Saidu Mahuta, executive director of AA Rano Nigeria Limited, said the regulator had issued, extended or renewed the companies’ licences only sporadically since July 2025. He argued that this was entrenching market dominance by local refineries in the downstream sector.

Justice Ekwo ruled that any step the regulator takes on import licences in breach of the PIA and related laws is null and void. He found that the companies had proved their case and that it succeeded on its merits.

The judge declared that Sections 31 and 32 of the PIA, Section 211 of the Act, and Section 72 of the Federal Competition and Consumer Protection Act require the NMDPRA to promote a competitive midstream and downstream market. The provisions also require it to prevent abuse of dominant positions and restrictive business practices.

The court further declared that the companies are entitled to the grant, extension or renewal of import licences once they meet the conditions the NMDPRA sets.

Justice Ekwo ordered the authority to continue to grant, issue, extend, renew or reissue all licences, permits and authorisations for midstream and downstream operations, especially those covering petroleum product imports, to the three companies. This applies once they satisfy all statutory and regulatory requirements.

Raji Ahmed, SAN, and Chris Ekemezie, Esq., counsel to the companies, had asked the court to declare that the PIA does not ban the importation of petroleum products into Nigeria. They also asked for a declaration that the Act does not stop the NMDPRA from granting or renewing licences for eligible importers.