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 on Monday while delivering judgment in a suit filed by the three oil marketers against the regulatory authority.
The court held that the NMDPRA’s refusal to issue or renew import licences for the companies was in direct non-compliance with provisions of the Petroleum Industry Act (PIA), 2021.
The plaintiffs, represented by Raji Ahmed, SAN, and Chris Ekemezie, Esq., had sought a declaration 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.
In his judgment, Justice Ekwo said the case was founded on the NMDPRA’s refusal to issue and renew petroleum products import licences for the plaintiffs.
The judge held that the authority’s actions were “in direct non-compliance with the PIA,” adding that it had acted beyond the provisions of the law.
He further ruled that any exercise by the NMDPRA concerning import licences, where there was non-compliance with the PIA and relevant laws, would be “null and void.”
Justice Ekwo subsequently held that the plaintiffs had successfully established their claims against the NMDPRA and that the case succeeded on its merits.
The court also declared that Sections 31(a), (d), (l), 32(l), (s), (c), (u), (aa), (ii), (jj), and 211 of the PIA, 2021, read together with Section 72 of the Federal Competition and Consumer Protection Act (FCCPA), mandate the NMDPRA to promote competition in the midstream and downstream petroleum sector.
The provisions also require the authority to prevent abuse of dominant positions and restrictive business practices in the sector, the court held.
Justice Ekwo further declared that the three companies, upon fulfilling the conditions stipulated by the NMDPRA, are entitled to the issuance, extension or renewal of petroleum products import licences.
