Fuel import: Court orders NMDPRA to grant licences to Matrix, AA Rano, AYM

ABUJA — The Federal High Court in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) not to discontinue granting petroleum products import licences to three oil marketers.

The marketers that secured the order are Matrix Energy, AA Rano and AYM Shafa.

The court, in a ruling delivered by Justice Inyang Ekwo, gave the order while delivering judgment in a suit the three oil marketers filed against the regulatory authority.

The court held that the NMDPRA’s refusal to issue or renew import licences for the companies was in direct non-compliance with provisions of the Petroleum Industry Act (PIA), 2021.

The plaintiffs had approached the court for a declaration that the PIA does not prohibit the importation of petroleum products into Nigeria or prevent the NMDPRA from granting or renewing licences for eligible importers.

Delivering his judgment in the matter, Justice Ekwo held that the case was based on the NMDPRA’s refusal to issue and renew petroleum products import licences for the plaintiffs.

He held that the NMDPRA’s actions were in direct non-compliance with the PIA, noting that the agency had acted beyond the provisions of the law.

The court ruled that any exercise by the NMDPRA concerning import licences, where there was non-compliance with the PIA and relevant laws, would be “null and void.”

According to the court, the plaintiffs successfully established their claims against the NMDPRA.

It, therefore, held that the case succeeded on its merits.

Consequently, the court declared that Sections 31(a), (d), (l), 32(l), (s), (c), (u), (aa), (ii), (jj), and 211 of the PIA, 2021, read together with Section 72 of the Federal Competition and Consumer Protection Act (FCCPA), mandate the NMDPRA to promote competition in the midstream and downstream petroleum sector.

The provisions, it said, also required the authority to prevent abuse of dominant positions and restrictive business practices in the oil sector.

The court declared that the plaintiffs, upon fulfilling the conditions stipulated by the NMDPRA, are entitled to the issuance, extension or renewal of their petroleum products import licences.