The Federal High Court in Abuja has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing, renewing and extending petroleum products import licences to Matrix Energy, AA Rano and A.Y.M. Shafa, subject to the companies meeting all statutory and regulatory requirements.
Justice Inyang Ekwo, in his judgment, ruled that the regulator’s refusal to grant or renew the licences sought by the three oil marketers was inconsistent with provisions of the Petroleum Industry Act, 2021.
The case arose from the companies’ challenge to the NMDPRA’s refusal to issue or renew their licences for the importation of petroleum products.
Justice Ekwo held that the authority was required to operate within the limits established by the law, stressing that its actions in relation to the import licences must comply with the provisions of the PIA.
The judge stated that the NMDPRA’s actions “are in direct non-compliance with the PIA,” adding that any exercise of its powers that contravenes the relevant legislation could not stand.
He further held that “the consequence of non-compliance” with the PIA and other applicable laws was that any action taken by the authority in respect of the disputed import licences would be “null and void.”
The court consequently found that the three plaintiffs had established their case against the NMDPRA and were entitled to judgment on the merits.
Justice Ekwo also ruled that provisions of Sections 31 and 32, as well as Section 211 of the Petroleum Industry Act, when read alongside Section 72 of the Federal Competition and Consumer Protection Act, impose obligations on the NMDPRA to promote competition in the midstream and downstream petroleum sectors.
According to the judgment, the provisions also require the regulator to prevent abuse of dominant market positions and restrictive business practices within the sector.
The court further declared that Matrix Energy, AA Rano and A.Y.M. Shafa were entitled to the issuance, extension or renewal of petroleum products import licences once they satisfied the conditions stipulated by the NMDPRA and other applicable regulatory requirements.
Specifically, Justice Ekwo ordered the authority to “continue to grant, issue, extend, renew, or reissue all licences, permits, and authorisations for midstream and downstream operations” to the companies, particularly those relating to petroleum products importation.
The order, however, was made subject to the fulfilment of all statutory and regulatory preconditions governing the issuance of such licences.
In their legal arguments, counsel to the three oil marketers, Raji Ahmed, SAN, and Chris Ekemezie, had argued that the Petroleum Industry Act did not prohibit the importation of petroleum products into Nigeria.
The lawyers also maintained that the law did not prevent the NMDPRA from issuing or renewing import licences for eligible companies that meet the applicable requirements.
The judgment therefore reinforces the requirement for the petroleum regulator to administer the import licensing regime in accordance with the provisions of the PIA and other relevant competition laws.
