Court Orders NMDPRA to Keep Issuing Fuel Import Licences to Matrix, AA Rano, AYM

• The Federal High Court says NMDPRA must continue issuing and renewing fuel import licences for eligible marketers that meet regulatory conditions.

• Justice Inyang Ekwo ruled that restricting the licences to Matrix Energy, AA Rano and AYM Shafa breached provisions of the PIA.

• The judgment comes amid a wider dispute over fuel imports, as Dangote Refinery challenges the continued licensing of petrol importers.

September 28, () – 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, A.A. Rano and AYM Shafa, provided the companies meet all statutory and regulatory conditions.

Justice Inyang Ekwo gave the order in a judgment delivered on Monday, holding that the regulator’s refusal to issue or renew licences for the three oil marketers was inconsistent with the provisions of the Petroleum Industry Act (PIA).

The court declared that the PIA and relevant provisions of the Federal Competition and Consumer Protection Act require NMDPRA to promote competition in Nigeria’s midstream and downstream petroleum markets and prevent abuse of dominant positions and restrictive business practices.

Court backs continued import licensing

The judge held that the three marketers, upon fulfilling the conditions stipulated by NMDPRA, were entitled to the issuance, extension, renewal or reissuance of petroleum products import licences.

The court specifically directed NMDPRA to continue granting, issuing, extending, renewing or reissuing licences, permits and authorisations for midstream and downstream operations, particularly those relating to petroleum products imports.

Justice Ekwo said the regulator’s actions in refusing or restricting the licences were in “direct non-compliance” with the PIA and that any exercise of its powers contrary to the law would be null and void.

The case followed complaints by the marketers that NMDPRA had, since July 2025, granted or renewed their import licences only sporadically rather than regularly.

In an affidavit, Sabiu Saidu Mahuta, executive director of A.A. Rano Nigeria Limited, said the situation was entrenching market dominance by local refineries.

The marketers told the court that they had collectively invested more than $20 billion in infrastructure, logistics and retail networks for their petroleum businesses.

Their counsel, Raji Ahmed, SAN, argued that allowing imports alongside local production would strengthen competition and help prevent monopoly and price-fixing in the downstream market.

Judgment comes amid Dangote dispute

The judgment comes against the backdrop of a continuing dispute over the issuance of fuel import licences as domestic refining capacity expands.

NMDPRA recently approved petrol import permits totalling 830,000 metric tonnes for the fourth quarter of 2026 to Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Bono Energy.

The latest approvals have renewed attention to a separate suit filed by Dangote Petroleum Refinery against the Federal Government over the continued issuance of import licences.

The case is scheduled for further hearing on October 7, according to recent reports.

Dangote Refinery has argued that import licences should not be issued where domestic supply is sufficient, while the marketers have maintained that competition is necessary in the petroleum market.

The refinery previously withdrew a separate N100 billion suit challenging import licences in 2025.

The latest judgment therefore adds a significant judicial pronouncement to the ongoing debate over how Nigeria should balance growing domestic refining capacity with continued access to imported petroleum products.