The Federal High Court in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing and renewing petroleum products import licences to three major oil marketers, ruling that the regulator’s refusal to do so violates the Petroleum Industry Act (PIA).

Justice Inyang Ekwo delivered the judgement on Monday. The judge reportedly ruled that the authority’s refusal to grant or renew import licences for Matrix Energy, AA Rano and AYM Shafa was in “direct non-compliance” with the PIA, Nairametrics reported.

It said the judge specifically directed the regulator to continue granting, issuing, extending, renewing or reissuing licences, permits and authorisations for midstream and downstream petroleum operations, particularly the importation of petroleum products, once the companies meet all statutory and regulatory requirements.

The judgement followed a suit filed in June by the three oil marketers challenging the NMDPRA’s refusal to regularly issue or renew their petroleum products import licences.

The companies, through their lawyers, Raji Ahmed, a Senior Advocate of Nigeria, and Chris Ekemezie, argued that the PIA does not prohibit the importation of petroleum products into Nigeria or prevent the regulator from issuing licences to eligible importers.

The Court rulings

Delivering judgement on Monday, Mr Ekwo held that the NMDPRA’s refusal to issue and renew the licences was inconsistent with the provisions of the PIA and that the authority had acted beyond the limits of the law.

He ruled that any exercise of regulatory powers relating to import licences in violation of the PIA and other relevant laws was “null and void”.

The judge also held that the plaintiffs had successfully established their claims against the regulator.

In a key part of the judgment, the court declared that Sections 31, 32 and other relevant provisions of the PIA, read alongside Section 72 of the Federal Competition and Consumer Protection Act, mandate the NMDPRA to promote competition in the midstream and downstream petroleum sectors.

The provisions also require the regulator to prevent the abuse of dominant market positions and restrictive business practices.

The court further declared that the three oil marketers were entitled to the issuance, extension or renewal of their import licences upon fulfilling the conditions stipulated by the NMDPRA.

The judge, however, clarified that the authority retains exclusive regulatory powers to grant, modify, extend, renew, suspend, cancel or terminate licences and permits for midstream and downstream petroleum operations.

Why the oil marketers went to court

In an affidavit filed on 26 June in support of the suit, Sabiu Saidu Mahuta, executive director of AA Rano Nigeria Limited, said the NMDPRA had, since July 2025, issued, extended or renewed import licences for the three companies only sporadically rather than regularly.

He argued that the regulator’s actions and inactions were entrenching market dominance and monopolisation of the downstream petroleum sector by local refineries.

Mr Mahuta also said the three companies had collectively invested more than $20 billion in infrastructure, logistics and retail networks to support their petroleum businesses.

“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,” he stated.

The companies argued that allowing petroleum imports alongside local refining would promote competition, prevent monopolistic practices and price-fixing, and improve the overall performance of Nigeria’s midstream and downstream petroleum sectors.

Their lawyer, Mr Raji, urged the court to affirm the legality of petroleum products imports and the regulator’s obligation to issue licences to eligible operators.

Dangote Refinery’s legal suits

The judgement comes amid an ongoing legal dispute over the issuance of petrol import licences in Nigeria, particularly following the expansion of domestic refining capacity by the Dangote Refinery.

Dangote Refinery has argued in a separate suit that the continued issuance of petroleum products import licences contravenes Nigerian law, which it maintains permits imports only when local refineries cannot meet domestic demand.

The refinery recently filed a fresh N100 billion suit against the Attorney-General of the Federation at the Federal High Court in Lagos over the continued issuance of import licences.

Matrix Energy, AA Rano and AYM Shafa have also applied to join that suit.

The case remains pending before the court.

The latest ruling in Abuja, however, addresses the three oil marketers’ rights to obtain import licences from the NMDPRA, provided they meet the applicable statutory and regulatory conditions.

Nigeria’s changing petrol supply dynamics

The legal dispute comes as Nigeria’s petroleum supply landscape continues to change following increased output from domestic refineries.

PREMIUM TIMES reported that NMDPRA data published last week showed that petrol imports declined sharply in the first quarter of 2026, while supplies from local refineries rose to about 3.18 billion litres.

The statistical presentation of the report showed that crude oil receipts by domestic refineries increased to 683,000 barrels per day (bpd) in August from 585,000 bpd in July, representing a 17 per cent increase.

The increase became profound as domestic petrol receipts rose significantly while reliance on imported petrol declined.

According to the data, average daily Premium Motor Spirit (PMS) receipts increased by 11 per cent, from 45.5 million litres per day in July to 50.5 million litres per day in August.

The report indicated that domestic PMS receipts accounted for most of the increase, rising by 39 per cent, from 25.8 million litres per day to 35.9 million litres per day.

In contrast, PMS imports fell by 26 per cent, from 19.7 million litres per day in July to 14.6 million litres per day in August.

The growth in domestic refining has intensified discussions about the role of fuel imports, market competition, and the regulatory conditions governing the supply of petroleum products.

READ ALSO: Dangote refinery drove Nigeria’s petrol supply in August as NNPC refineries remain shut — Report

Meanwhile, PREMIUM TIMES reported last week that NMDPRS approved petrol import permits covering about 830,000 metric tonnes for multiple companies ahead of the fourth quarter of 2026.

George Ene-Ita, spokesperson for the authority, confirmed the development to PREMIUM TIMES last Tuesday.

“Yes, petrol import permits were approved for Q4 2026 to ensure no supply gaps are heading into the critical end-of-year period,” Mr Ene-Ita said.

Companies reportedly granted the permits include Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Bono Energy.

The approvals were reportedly issued on 18 September, although details of the individual allocations to the marketers are still sketchy. A request for details from PREMIUM TIMES, sent via email to the authority last week, was acknowledged, but has yet to be received.