The Federal High Court in Abuja has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to keep granting petrol import licenses to Matrix Energy, AA Rano and AYM Shafa.
This ruling could reshape the balance between imported fuel and output from local refineries, including the giant Dangote plant.
Justice Inyang Ekwo said on Monday that the regulator’s refusal to issue licences to the three companies was in ‘direct non-compliance’ with the Petroleum Industry Act, the 2021 law that overhauled Nigeria’s oil and gas sector.
He also said the authority had acted beyond the provisions of the law.
The judge held that the ‘consequence of non-compliance’ with the Act and related laws makes any exercise by the authority in respect of import licences ‘null and void.’
He found that the plaintiffs had established their claim and that the case succeeded on its merits.
The dispute centered on the regulator’s refusal to issue and renew import licences for the three companies.
Their lawyers, Raji Ahmed, a senior advocate of Nigeria, and Chris Ekemezie, asked the court to declare that the Act does not ban the importation of petroleum products into Nigeria.
They also argued that it does not stop the regulator from granting or renewing licences for eligible importers.
Ekwo went further than simply ordering licences.
He declared that Sections 31 and 32 of the Act, read alongside Section 72 of the Federal Competition and Consumer Protection Act, oblige the regulator to promote a competitive market for midstream and downstream operations.
Those provisions, he said, also require it to prevent the abuse of dominant positions and restrictive business practices.
The court also ruled that the plaintiffs are entitled to be granted, extended or renewed import licences once they meet the conditions the regulator sets.
Those rulings tie the regulator’s discretion to its own stated requirements.
The judge also addressed who holds licensing power. He declared that under Sections 29(3), 32 and 33 of the Act, the regulation of midstream and downstream operations is vested in the regulator alone.
That includes the power to grant, issue, modify, extend, renew, suspend, cancel, reissue or terminate licences, permits and authorisations.
Ekwo directed the authority to continue to grant, issue, extend, renew or reissue all licences, permits and authorisations for midstream and downstream operations, particularly those relating to petroleum product imports, once the plaintiffs satisfy all statutory and regulatory preconditions.
In an affidavit, Sabiu Saidu Mahuta, executive director of A.A. Rano Nigeria Ltd., said the regulator had, since July 2025, issued or renewed import licences to the plaintiffs only sporadically rather than regularly.
He said the authority’s action or inaction was entrenching market dominance and monopolisation of the downstream sector by local refineries.
Mahuta also cited the scale of the companies’ investments.
‘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 said in the affidavit. The figure is the plaintiffs’ own claim, and the court record supplied does not independently verify it.
Ahmed urged the court to hold that importing petroleum products alongside local production would encourage competition, check monopoly and price-fixing, and improve the midstream and downstream sector overall.
It is not yet clear whether the NMDPRA will comply, seek a stay, or appeal the decision.