Court Mandates Continuous Fuel Import Licences for Major Marketers, Citing PIA Compliance
A significant legal victory for key oil marketers has seen the Federal High Court in Abuja order the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to consistently grant petroleum product import licences to Matrix Energy, AA Rano, and AYM Shafa. The ruling, delivered on Monday, September 28, 2026, by Justice Inyang Ekwo, found the NMDPRA’s previous refusal to issue these licences to be in “direct non-compliance” with the Petroleum Industry Act (PIA), 2021.
The court’s judgment affirmed the position of the oil marketers’ legal representatives, Raji Ahmed, SAN, and Chris Ekemezie, Esq., who argued that the PIA does not prohibit or preclude the NMDPRA from granting or renewing import licences for eligible entities. Justice Ekwo underscored that the NMDPRA’s actions were beyond the scope of the law, rendering any exercises related to import licences in such instances “null and void.”
The ruling declared that the PIA, specifically sections including 31(a), (d), (l), 32(l), (s), (c), (u), (aa), (ii), (jj), and Section 211, when read in conjunction with Section 72 of the Federal Competition and Consumer Protection Act (FCCPA), mandates the NMDPRA to foster a competitive midstream and downstream petroleum market and prevent anti-competitive practices. Crucially, the court declared that the plaintiffs, upon meeting all stipulated conditions, are entitled to the issuance, grant, extension, or renewal of their import licences.
This judicial intervention follows claims by the oil marketers that the NMDPRA had only sporadically granted, issued, extended, renewed, or reissued import licences since July 2025. They contended that this inconsistent approach was entrenching market dominance and monopolisation by local refineries, despite their collective investment of over $20 billion in infrastructure and retail networks. The marketers argued that the importation of petroleum products alongside local production is essential for fostering competition, curbing monopoly and price-fixing, and ultimately improving the sector.
The legal battle unfolds against a backdrop of shifting dynamics in Nigeria’s fuel import landscape. Recent reports indicated a sharp decline in petrol imports during the first quarter of 2026, coinciding with increased supply from local refineries. Notably, Matrix Energy, AA Rano, and AYM Shafa have also sought to join a separate N100 billion suit filed by Dangote Refinery against the Attorney General of the Federation, which challenges the continued issuance of import licences, arguing they should only be granted when local supply is insufficient. This latest court order, however, directly compels the NMDPRA to facilitate continued access to import licences for these major players, provided they meet statutory requirements.
