Petrol Import: Court Directs NMDPRA To Issue Licences to AA Rano, Matrix Energy, AYM Shafa

The Federal High Court in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue granting petroleum product import licences to Matrix Energy, AA Rano and AYM Shafa.

Justice Inyang Ekwo gave the order on Monday while delivering judgment in a suit filed by the three oil marketing companies.

The court held that the NMDPRA’s refusal to issue and renew the licences did not comply with the Petroleum Industry Act (PIA) 2021.

The judge ruled that the companies successfully proved their case and were entitled to the reliefs they sought.

He also declared that the Petroleum Industry Act does not ban the importation of petroleum products into Nigeria.

According to the judgment, eligible companies that meet all legal requirements have the right to obtain or renew petroleum import licences.

Justice Ekwo further held that the relevant provisions of the PIA and the Federal Competition and Consumer Protection Act require the regulator to promote competition and prevent monopoly in the petroleum sector.

According to the judge, 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 court directed the NMDPRA to continue to grant, issue, extend, renew or reissue licences, permits and authorisations to the three companies once they satisfy all statutory and regulatory conditions.

The plaintiffs had argued through their lawyers, Raji Ahmed (SAN) and Chris Ekemezie, that allowing both fuel imports and local refining would encourage healthy competition and improve the downstream petroleum industry.

In an affidavit, AA Rano Executive Director Sabiu Saidu Mahuta said the authority had only granted the companies import licences occasionally since July 2025 instead of doing so regularly.

He stated that the regulator’s action was encouraging market dominance by local refineries and limiting competition in the downstream sector.

Mahuta added, “Collectively, the Plaintiffs have invested more than $20,000,000,000 [Twenty Billion United States of America Dollars] in infrastructure, logistics and retail networks for the smooth operations of their licensed petroleum products businesses.”

The NMDPRA defended its position before the court by filing its legal processes during the proceedings.

The judgment comes as official figures recently showed that Nigeria’s petrol imports fell sharply in the first quarter of 2026 because supplies from local refineries increased to about 3.18 billion litres, highlighting the ongoing debate over fuel imports, competition and energy security in the country.