The Federal High Court in Abuja has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing, extending and renewing petroleum import licences for Matrix Energy, A.A. Rano and A.Y.M. Shafa, provided the companies satisfy applicable statutory and regulatory requirements.
Justice Inyang Ekwo delivered the judgment on Monday, September 28, 2026, after finding that the regulator’s refusal to issue or renew licences for the three oil marketers did not comply with provisions of the Petroleum Industry Act (PIA), 2021.
The ruling also addressed competition in Nigeria’s downstream petroleum market, with the court holding that the NMDPRA has obligations under the PIA and the Federal Competition and Consumer Protection Act (FCCPA) to promote competition and prevent restrictive business practices.
Justice Ekwo’s order does not give the three companies an unconditional right to import petroleum products.
Rather, the court said Matrix Energy, A.A. Rano and A.Y.M. Shafa are entitled to the issuance, extension or renewal of their licences after meeting the conditions imposed under the relevant regulatory framework.
The order specifically covers licences, permits and authorisations relating to midstream and downstream petroleum operations, with particular emphasis on petroleum product imports.
The court’s directive requires the NMDPRA to:
- Continue granting eligible petroleum import licences.
- Issue, extend, renew or reissue relevant permits and authorisations.
- Apply the statutory and regulatory conditions to the three companies.
- Promote competition within the midstream and downstream petroleum sectors.
The distinction is important because the judgment does not remove the regulator’s licensing requirements. The companies must still satisfy the applicable preconditions before receiving or renewing the relevant approvals.
The judgment placed considerable emphasis on the relationship between petroleum regulation and competition policy.
Justice Ekwo referred to several provisions of the Petroleum Industry Act, including sections 31, 32 and 211, alongside Section 72 of the FCCPA. The court said the provisions collectively impose duties on the NMDPRA to encourage a competitive petroleum market and address conduct that could amount to abuse of a dominant position or restrictive business practices.
The court consequently found that the regulator’s refusal to grant or renew the licences in question amounted to non-compliance with the applicable legal framework.
Justice Ekwo further held that actions taken by the NMDPRA in breach of those legal requirements could not stand.
The ruling therefore goes beyond the immediate interests of the three marketers. It also provides a judicial interpretation of the regulator’s responsibilities when exercising its licensing powers in Nigeria’s downstream petroleum industry.
The three oil marketers had challenged the position taken by the NMDPRA regarding their petroleum import licences.
Their lawyers, Raji Ahmed, SAN, and Chris Ekemezie, argued that the Petroleum Industry Act does not impose a blanket prohibition on petroleum product imports or prevent the regulator from licensing qualified importers.
Their position centred on the argument that eligible operators should remain able to participate in the petroleum market where they meet regulatory requirements.
The court ultimately accepted the substance of their claims and granted reliefs requiring the NMDPRA to continue processing the relevant licences in accordance with the law.
The judgment arrives against the backdrop of a broader dispute over whether Nigeria should continue granting petrol import licences as domestic refining capacity expands.
Dangote Petroleum Refinery has separately challenged the Federal Government and regulatory authorities over the continued issuance of fuel import licences to petroleum marketers.
In the latest case, Dangote is challenging licences issued or renewed for several companies, including Matrix, A.A. Rano and A.Y.M. Shafa. The Federal High Court in Lagos has adjourned that separate matter to October 7, 2026.
The dispute has become increasingly significant as domestic petrol production has expanded.
Data reported in July showed that petrol imports fell substantially in the first quarter of 2026, while supplies from local refineries increased. Nairametrics reported that domestic refineries supplied about 3.18 billion litres of petrol during the period, compared with roughly 965.5 million litres from imports.
Although both disputes involve petrol import licences, they should not be treated as the same case.
The Abuja judgment concerns the rights and regulatory treatment of Matrix Energy, A.A. Rano and A.Y.M. Shafa in their dealings with the NMDPRA.
The separate Lagos proceedings brought by Dangote Refinery challenge the issuance or renewal of import licences and raise questions about the regulator’s authority and compliance with the Petroleum Industry Act.
This means the September 28 judgment does not, by itself, determine the outcome of Dangote Refinery’s pending case.
It does, however, add another significant judicial development to the continuing debate over competition, domestic refining and petroleum imports in Nigeria.
The immediate effect of the judgment is that the NMDPRA must continue dealing with the three marketers’ applications for petroleum import licences, subject to their compliance with applicable statutory and regulatory requirements.
The broader implications could depend on how the regulator implements the ruling and whether any party challenges the judgment on appeal.
Key issues to watch include:
- Whether the NMDPRA complies with the court’s directive.
- Whether the regulator appeals the judgment.
- How the ruling affects future import-licence applications.
- The outcome of Dangote Refinery’s separate Lagos lawsuit.
- Whether increased domestic refining changes the regulatory approach to imports.
Nigeria’s downstream market is consequently facing a legal and policy crossroads: domestic refining capacity is increasing, while petroleum marketers continue to argue for access to imports as part of a competitive supply system.
For now, the Federal High Court’s Abuja ruling establishes that the NMDPRA cannot refuse the three marketers’ licences outside the requirements of the governing laws. Matrix Energy, A.A. Rano and A.Y.M. Shafa must still meet the applicable conditions before licences are issued or renewed, while the separate Dangote Refinery litigation remains pending.
