Judge cites need to curb market dominance
The Federal High Court in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue issuing and renewing petroleum products import licences for Matrix Energy, A.A. Rano and AYM Shafa, subject to the companies fulfilling all statutory and regulatory requirements.
Justice Inyang Ekwo gave the order while delivering a judgment on Monday, holding that the NMDPRA’s refusal to issue or renew the marketers’ import licences directly contravened the Petroleum Industry Act (PIA) 2021.
The court ruled that the PIA does not prohibit the importation of petroleum products into Nigeria and that eligible importers who meet prescribed conditions are entitled to obtain or renew the relevant licences.
Justice Ekwo further held that the NMDPRA is required by the PIA and relevant provisions of the Federal Competition and Consumer Protection Act (FCCPA) to promote competition in the midstream and downstream petroleum sector and prevent abuse of dominant positions and restrictive business practices.
The court declared that Sections 31, 32, 33 and 211 of the PIA, read alongside Section 72 of the FCCPA, impose obligations on the regulator to promote a competitive market in petroleum operations.
It consequently directed the NMDPRA to “continue to grant, issue, extend, renew, or reissue” licences, permits and authorisations for midstream and downstream operations, particularly those relating to petroleum products importation, once the applicants fulfil all statutory and regulatory preconditions.
The court also affirmed that the power to grant, issue, modify, extend, renew, suspend, cancel, reissue or terminate licences, permits and authorisations for midstream and downstream petroleum operations is vested in the NMDPRA under the PIA.
The case followed the marketers’ challenge to the regulator’s refusal to regularly grant or renew their import licences.
In an affidavit filed in the suit, A.A. Rano Nigeria Limited Executive Director, Sabiu Saidu Mahuta, alleged that since July 2025, the NMDPRA had granted, extended, renewed or reissued import licences to the plaintiffs only sporadically.
He argued that the situation was entrenching market dominance and monopolisation of the downstream petroleum sector by local refineries.
The three marketers said they had collectively invested more than $20 billion in infrastructure, logistics and retail networks to support their petroleum products businesses.
Their counsel, Raji Ahmed, SAN, argued that allowing petroleum products to be imported alongside domestic production would promote competition, curb monopoly and price-fixing and improve the efficiency of the midstream and downstream petroleum sector.
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The NMDPRA’s legal team also filed its processes in the case.
The judgment comes amid a significant shift in Nigeria’s fuel supply structure following increased domestic refining. NMDPRA data showed that petrol imports declined sharply in the first quarter of 2026 from 42.2 million litres per day in December 2025 to 5.9 million litres per day in March 2026. After rising to 19.7 million litres per day in July, it dropped again to 14.6 million litres per day in August. Supply of petrol by local refineries stands at an average of 35 million litres per day in the past eight months.
The court ruling also adds a new dimension to the continuing legal dispute over petroleum products importation following the emergence of the Dangote Refinery as a major domestic supplier.
Matrix Energy, A.A. Rano and AYM Shafa have applied to join a separate N100 billion suit filed by Dangote Refinery against the Attorney-General of the Federation at the Federal High Court in Lagos over the continued issuance of fuel import licences.
Dangote Refinery contends in that case that continued issuance of import licences contravenes Nigerian law, arguing that petroleum products should be imported only where domestic supply is insufficient to meet demand. The case remains pending.
The refinery had previously challenged import licences issued by the NMDPRA to NNPC Limited, AYM Shafa, A.A. Rano, T. Time Petroleum, 2015 Petroleum and Matrix Petroleum Services.
However, Dangote Refinery withdrew the 2025 suit in July of that year.
Nigeria had historically relied heavily on imported petrol because of prolonged operational challenges affecting its state-owned refineries. The commencement of large-scale operations at the Dangote Refinery has since altered the structure of the country’s petroleum products supply market, intensifying debate over the role of imports alongside domestic refining.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X