The Federal High Court in Abuja has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue granting and renewing petroleum products import licences to Matrix Energy, A.A. Rano and AYM Shafa, provided the three companies meet the statutory and regulatory conditions attached to those licences.
Justice Inyang Ekwo delivered the judgment on Monday, 28 September 2026. He held that the regulator’s refusal to issue and renew import licences to the three marketers was in “direct non-compliance” with the Petroleum Industry Act (PIA) 2021, and that the authority had acted outside the provisions of the law.
The ruling is one of the clearest judicial statements so far on whether the PIA allows petroleum product imports as domestic refining output grows. It also arrives while a separate challenge to import licensing remains before the Federal High Court in Lagos.
What the Court Decided
Justice Ekwo observed that the case rested on NMDPRA’s refusal to issue and renew import licences to the plaintiffs. He found that the companies had established their claim and that the suit succeeded on its merits. He further held that where the regulator fails to comply with the PIA and related laws, its exercise of licensing powers in that respect is null and void.
The court made three key declarations:
- A duty to promote competition. Reading Sections 31, 32 and 211 of the PIA together with Section 72 of the Federal Competition and Consumer Protection Act (FCCPA), the court held that NMDPRA is obliged to promote a competitive market for midstream and downstream operations and to prevent abuse of dominant positions and restrictive business practices.
- An entitlement to licences. Once the plaintiffs satisfy the conditions set by NMDPRA, they are entitled to the grant, extension or renewal of petroleum products import licences.
- Exclusive regulatory authority. Under Sections 29(3), 32 and 33 of the PIA, the power to grant, modify, renew, suspend, cancel or terminate midstream and downstream licences rests with NMDPRA alone.
The court then ordered NMDPRA to continue to grant, issue, extend, renew or reissue licences, permits and authorisations for midstream and downstream operations to the three companies, particularly for the importation of petroleum products, once all statutory and regulatory preconditions are met.
The companies were represented by Raji Ahmed, SAN, and Chris Ekemezie, Esq. Among other reliefs, they asked the court to declare that the PIA regime does not ban the importation of petroleum products into Nigeria and does not prevent NMDPRA from licensing eligible importers. NMDPRA’s legal team also filed processes in the matter.
The Marketers' Case
In an affidavit, Sabiu Saidu Mahuta, Executive Director of A.A. Rano Nigeria Limited, told the court that since July 2025 the regulator had granted or renewed the companies’ import licences only sporadically rather than on a regular basis. He argued that this pattern was entrenching the market dominance of local refineries in the downstream sector.
The plaintiffs stated that they had collectively invested more than US$20 billion in infrastructure, logistics and retail networks to support their licensed petroleum products businesses.
Their counsel argued that allowing imports to sit alongside local production would encourage competition, guard against monopoly and price-fixing, and improve the overall performance of the midstream and downstream sector.
The Wider Dispute
The Abuja judgment does not close the broader legal contest over import licensing. Matrix Energy, AA Rano and AYM Shafa have applied to join a fresh N100 billion suit filed by Dangote Petroleum Refinery against the Attorney General of the Federation at the Federal High Court in Lagos. In that suit, the refinery contends that Nigerian law permits fuel imports only where local supply falls short of demand. The matter is still pending.
This is not the refinery’s first challenge. In 2025, it asked a court to nullify import licences issued to NNPC Ltd, AYM Shafa, AA Rano, T. Time Petroleum, 2015 Petroleum and Matrix Petroleum Services. It discontinued that suit in July 2025.
Why This Matters
Nigeria’s fuel supply picture has changed quickly. For decades, the country relied heavily on imported petrol because state-owned refineries performed poorly. The arrival of the Dangote Refinery, widely described as Africa’s largest single-train refinery, has shifted that balance. Recent NMDPRA data showed that petrol imports fell sharply in the first quarter of 2026, while supply from local refineries rose to about 3.18 billion litres.
Against that background, the judgment carries weight for several reasons.
Regulatory predictability. The ruling ties licence decisions to published statutory and regulatory conditions. For operators who have built storage, logistics and retail assets around import supply, this offers a judicial basis to expect consistent processing of applications.
Competition as a legal obligation. By reading the PIA alongside the FCCPA, the court framed competition in the downstream market as a duty the regulator must uphold, not a matter of policy preference. That reasoning may shape how future licensing decisions are assessed.
Implications for consumers. The marketers’ core argument, which succeeded in this case, is that multiple supply sources check pricing power. How that translates at the pump will depend on market conditions, but the principle of open supply now has the backing of a court judgment.
Conditions still apply. The order is not an open door. The court tied the companies’ entitlement to meeting every statutory and regulatory requirement, leaving NMDPRA’s role as gatekeeper intact.
What to Watch
Three developments will determine how far this judgment reaches: whether NMDPRA chooses to appeal, the outcome of the pending suit in Lagos, and how the regulator handles import licence applications in the coming quarters. Each will shape the balance between growing domestic refining capacity and continued access to imported products.
