By Our Reporter
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 Matrix Energy, AA Rano and AYM Shafa, provided the companies meet all statutory and regulatory requirements.
Justice Inyang Ekwo issued the order while delivering judgment in a suit filed by the three oil marketers over the refusal of the regulatory authority to issue or renew their petroleum products import licences.
The judge held that the NMDPRA’s refusal to grant or renew the licences was in “direct non-compliance” with provisions of the Petroleum Industry Act (PIA) 2021.
Justice Ekwo said the actions of the regulatory authority went beyond the provisions of the law, adding that any exercise relating to import licences that failed to comply with the PIA and other relevant legislation would be null and void.
The judge consequently held that the three companies had established their claims against the NMDPRA and that the case succeeded on its merits.
He declared that various provisions of the PIA, read alongside Section 72 of the Federal Competition and Consumer Protection Act, require the NMDPRA to promote competition in Nigeria’s midstream and downstream petroleum sector and prevent abuse of dominant positions and restrictive business practices.
Justice Ekwo further ruled that the three oil marketers are entitled to the issuance, extension or renewal of petroleum products import licences after fulfilling conditions stipulated by the NMDPRA.
The court specifically ordered the regulator to continue to grant, issue, extend, renew or reissue licences, permits and authorisations for midstream and downstream petroleum operations, particularly those relating to petroleum products importation, whenever the companies satisfy all statutory and regulatory preconditions.
The case followed the companies’ challenge of the NMDPRA’s refusal to issue and renew their import licences.
Counsel to the oil marketers, Raji Ahmed, SAN, and Chris Ekemezie, had argued, among other things, that the Petroleum Industry Act did not prohibit the importation of petroleum products into Nigeria.
They also argued that the law did not prevent the NMDPRA from granting or renewing licences for eligible importers.
The court’s ruling is expected to have implications for the regulation of petroleum products importation and competition within Nigeria’s downstream oil market.