The Federal High Court in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing and renewing petroleum products import licences for Matrix Energy, AA Rano and AYM Shafa.
Justice Inyang Ekwo issued the order on Monday while delivering judgment in a suit filed by the three oil marketers against the regulatory authority.The court held that the NMDPRA’s refusal to issue or renew the companies’ fuel import licences was contrary to provisions of the Petroleum Industry Act (PIA), 2021.
The plaintiffs were represented by Raji Ahmed, SAN, and Chris Ekemezie, Esq.Court rules on fuel import licencesThe oil marketers had asked the court to declare that the PIA does not prohibit the importation of petroleum products into Nigeria.
They also sought a declaration that the law does not prevent the NMDPRA from issuing, extending or renewing import licences for eligible petroleum products importers.In his judgment, Justice Ekwo said the case arose from the NMDPRA’s refusal to issue or renew the import licences of the three companies.
The judge held that the regulatory authority’s action was in “direct non-compliance with the PIA” and had gone beyond the provisions of the law.
Justice Ekwo further ruled that any action taken by the NMDPRA in relation to petroleum products import licences without complying with the PIA and other relevant laws would be “null and void.”Matrix Energy, AA Rano, AYM Shafa entitled to licencesThe court subsequently held that Matrix Energy, AA Rano and AYM Shafa had successfully established their claims against the NMDPRA.
Justice Ekwo declared that the three companies are entitled to the issuance, extension or renewal of petroleum products import licences, subject to their fulfilment of conditions stipulated by the NMDPRA.
The court also referred to provisions of the PIA and Section 72 of the Federal Competition and Consumer Protection Act (FCCPA), which require the NMDPRA to promote competition in Nigeria’s midstream and downstream petroleum sector.
According to the judgment, the provisions also require the regulator to prevent abuse of dominant positions and restrictive business practices in the petroleum industry.
The ruling could have implications for the regulation of fuel importation and competition among petroleum products marketers in Nigeria.
