The Federal High Court in Abuja on Monday ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the nation’s hydrocarbon resources downstream market regulatory agency, to continue issuing petroleum products import licences and renewing them to three oil marketers – Matrix Energy, AA Rano and AYM Shafa.
Justice Inyang Ekwo gave the order while delivering judgment in a suit filed by the three oil marketers against the regulatory authority.
After listening to the parties’ legal counsels, the judge ruled that the NMDPRA’s refusal to issue or renew the companies’ import licences was contrary to the provisions of the Petroleum Industry Act (PIA) 2021.
The plaintiffs, represented by Raji Ahmed (SAN), and Chris Ekemezie had asked the court to declare 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.
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In his judgment, Justice Ekwo held that the suit arose from the NMDPRA’s refusal to issue and renew petroleum products import licences for the three companies, describing the NMDPRA’s actions as being in direct non-compliance with the PIA, implying that the NMDPRA has acted beyond the powers conferred on it by law.
The Judge further held that any action by the authority relating to import licences that was undertaken in breach of the PIA and other applicable laws would be “null and void.”
Justice Ekwo subsequently found that the plaintiffs had established their claims against the NMDPRA and ruled that the suit succeeded on its merits.
The court also held that Sections 31(a), (d), (l), 32(l), (s), (c), (u), (aa), (ii), (jj) and 211 of the PIA, 2021, read alongside Section 72 of the Federal Competition and Consumer Protection Act (FCCPA), impose obligations on the NMDPRA to promote competition in Nigeria’s midstream and downstream petroleum sector.
Based on the judgment, the provisions also require the regulator to prevent the abuse of dominant market positions and restrictive business practices within the sector.
Justice Ekwo further declared that the three marketers were entitled to the issuance, extension or renewal of petroleum products import licences, provided they meet the conditions and requirements stipulated by the downstream market regulatory authority.
Experts believe that the High Court will have major implications for the regulation of the nation’s petroleum products importation and supply in the increasingly expanding market.
