Court Orders NMDPRA to Grant Import Licences to Matrix, AA Rano, AYM Shafa

By Adedapo Adesanya

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.

Justice Inyang Ekwo gave the order in a judgment delivered on Monday, ruling that the NMDPRA’s refusal to issue or renew import licences for the three oil marketers was in direct non-compliance with the Petroleum Industry Act (PIA) 2021.

The court held 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.

Justice Ekwo said the NMDPRA’s actions in refusing the licences were beyond the provisions of the law, adding that any exercise of the authority’s powers that does not comply with the PIA and other relevant laws is null and void.

The PIA provides a legal basis for such imports; however, such interventions are often allowed only where there is empirical evidence of a domestic supply gap.

Recall that recently, the NMDPRA allowed for six marketers to import 830,000 tonnes of petrol to cover for any unforeseen shortfalls in the fourth quarter of the year.

The judge also declared that provisions of the PIA, read together with Section 72 of the Federal Competition and Consumer Protection Act, require the NMDPRA to promote competition in the midstream and downstream petroleum sector and prevent abuse of dominant positions and restrictive business practices.

He further held that Matrix Energy, AA Rano and AYM Shafa are entitled to the issuance, grant, extension or renewal of petroleum-products import licences once they fulfil the conditions stipulated by the NMDPRA.

The court declared that the statutory 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 NMDPRA.

Justice Ekwo consequently ordered the regulator to continue to grant, issue, extend, renew or reissue licences, permits and authorisations for midstream and downstream operations, particularly those relating to petroleum-products imports, to the three marketers upon fulfilment of all statutory and regulatory requirements.