The Federal High Court in Abuja on Monday ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority to continue granting petroleum products import licences to three major oil marketers, Matrix Energy, AA Rano and AYM Shafa, in accordance with relevant laws.

Justice Inyang Ekwo issued the order in his judgment, ruling that the NMDPRA’s refusal to grant the companies import licences amounted to “direct non-compliance” with the provisions of the Petroleum Industry Act.

Among other reliefs, lawyers to the three companies, Raji Ahmed, SAN, and Chris Ekemezie, Esq., sought a declaration that the Petroleum Industry Act, 2021, does not prohibit the importation of petroleum products into Nigeria.

They also argued that the Act does not prevent the Nigerian Midstream and Downstream Petroleum Regulatory Authority from granting or renewing import licences for eligible petroleum products importers.

In his judgment, Justice Ekwo observed that the case arose from the NMDPRA’s refusal to issue and renew petroleum products import licences for the three companies.

According to the judge, the NMDPRA’s actions were “in direct non-compliance with the PIA”, adding that the authority had acted beyond the scope of the law.

He further held that the “consequence of non-compliance” with the PIA and other relevant laws rendered any action taken by the authority regarding the import licences “null and void”.

The judge subsequently ruled that the plaintiffs had successfully established their case against the NMDPRA, holding that the suit succeeded on its merits.

Justice Ekwo declared that Sections 31(a), (d), (l), 32(l), (s), (c), (u), (aa), (ii), (jj), and 211 of the Petroleum Industry Act, 2021, read alongside Section 72 of the Federal Competition and Consumer Protection Act, require the NMDPRA to promote a competitive market for midstream and downstream petroleum operations.

The judge said the provisions also mandate the regulator to prevent the abuse of dominant positions and restrictive business practices in the sector.

“A DECLARATION that by the provisions of the Petroleum Industry Act, 2021, particularly, Sections 29(3), 32(a)–(uu) & 33(a)–(w) thereof, the regulation of the midstream and downstream operations of the Petroleum Industry, especially, the power to grant, issue, modify, extend, renew, suspend, cancel, reissue or terminate licences, permits and authorisations for midstream and downstream operations is vested in the Defendant only.”

The judge specifically ordered the NMDPRA to continue granting, issuing, extending, renewing or reissuing licences, permits and authorisations for midstream and downstream petroleum operations to the plaintiffs.

The order particularly covers licences relating to the importation of petroleum products, provided the companies meet all statutory and regulatory requirements applicable to such approvals.

In an affidavit filed by Sabiu Saidu Mahuta, Executive Director of A.A. Rano Nigeria Limited, he said the NMDPRA had, since July 2025, only sporadically granted, issued, extended, renewed or reissued petroleum products import licences, permits and authorisations to the plaintiffs, rather than doing so regularly.

He alleged that the regulator’s actions and/or inaction were reinforcing market dominance and encouraging monopolisation of the downstream petroleum sector by local refineries.

The latest legal development comes amid recent NMDPRA data showing that Nigeria’s petrol imports fell sharply in the first quarter of 2026, as supplies from local refineries rose to about 3.18 billion litres.