Three oil marketers, Matrix Energy, AA Rano and AYM Shafa, have secured a court order stopping the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) from refusing to issue or renew their petroleum products import licences.
The order was issued by the Federal High Court in Abuja in a judgment delivered by Justice Inyang Ekwo, it was reported.
The court held that the NMDPRA’s refusal to grant or renew the companies’ import licences did not comply with the provisions of the Petroleum Industry Act (PIA), 2021.
The marketers had approached the court seeking a declaration that the PIA does not ban the importation of petroleum products into Nigeria.
They also asked the court to declare that the NMDPRA has the power to grant or renew import licences for eligible companies that meet the required conditions.
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Delivering judgment, Justice Ekwo said the case centred on the regulatory authority’s refusal to issue and renew petroleum products import licences for the three companies.
The judge held that the NMDPRA’s actions were in direct non-compliance with the PIA, adding that the agency had acted beyond the provisions of the law.
The court further ruled that any action by the NMDPRA on petroleum products import licences that does not comply with the PIA and other relevant laws would be ‘null and void.’
Justice Ekwo said the plaintiffs had successfully established their claims against the regulatory authority and consequently ruled that the case succeeded on its merits.
The court also declared that several provisions of the PIA, including Sections 31(a), (d), (l), 32(l), (s), (c), (u), (aa), (ii), (jj), and 211, read together with Section 72 of the Federal Competition and Consumer Protection Act (FCCPA), require the NMDPRA to promote competition in the midstream and downstream petroleum sector.
According to the court, the provisions also require the authority to prevent abuse of dominant positions and restrictive business practices in the oil industry.
Justice Ekwo therefore held that Matrix Energy, AA Rano and AYM Shafa are entitled to the issuance, extension or renewal of their petroleum products import licences, provided they meet the conditions set by the NMDPRA.
