Court Orders NMDPRA To Continue To Grant Fuel Import Licences To Matrix, Others

Justice Inyang Ekwo of the Federal High Court in Abuja, has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to “continue to grant” petroleum products import licences to three major oil marketers—Matrix Energy, AA Rano, and AYM Shafa—in line with relevant laws.

The court made the order in its judgment, Monday, and held that the NMDPRA’s refusal to issue licences to the three oil marketers was in “direct non-compliance” with the Petroleum Industry Act (PIA).

Among other reliefs, the plaintiffs’ lead Counsel, Dr. hmed Raji, SAN, who led Chris Ekemezie, Esq., and Usman Mohammed Oloje, Esq., sought a declaration that the regime of the Petroleum Industry Act, 2021, does not outlaw or ban the importation of petroleum products into Nigeria, nor does it preclude or prohibit the NMDPRA from granting licences to eligible importers or renewing such licences for the importation of petroleum products into Nigeria.

Justice Ekwo said the case was founded on the refusal of the NMDPRA to issue and renew petroleum import licences to the plaintiffs.

It found that the actions of the NMDPRA “are in direct non-compliance with the PIA,” adding that the authority is acting beyond the provisions of the law.

He held that the “consequence of non-compliance” with the PIA and relevant laws makes any exercise by the authority in respect of import licences “null and void.”

The judge subsequently held that the plaintiffs had successfully established their claim against the NMDPRA, adding that the case succeeded on its merits.

The judge declared that the provisions of Sections 31(a), (d), (l), Section 32(l), (s), (c), (u), (aa), (ii), (jj), and Section 211 of the Petroleum Industry Act, 2021, read together with the provisions of Section 72 of the Federal Competition and Consumer Protection Act (FCCPA), obligate, mandate, constrain, or compel the NMDPRA to promote a competitive market for midstream and downstream petroleum operations and to prevent the abuse of dominant positions and restrictive business practices with regard thereto.

The judge also declared that the plaintiffs, upon fulfilment of the conditions stipulated by the defendant for the grant of petroleum products import licences, are entitled to the issuance or grant of same and/or extension or renewal of such import licences by the defendant.

“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 granted the order directing the NMDPRA to continue to grant, issue, extend, renew, or reissue all licences, permits, and authorisations for midstream and downstream operations, particularly as they relate to the importation of petroleum products, to the plaintiffs upon fulfilment of all statutory and/or regulatory preconditions for same.