By Mary Izuaka

 

The Federal High Court in Abuja has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue to issue petroleum products import licences to Matrix Energy, AA Rano and AYM Shafa.

Justice Inyang Ekwo gave the order on Monday, holding that the regulator’s refusal to issue and renew licences for the companies was in “direct non-compliance” with the Petroleum Industry Act (PIA).

The judge said the NMDPRA acted beyond the provisions of the law, adding that the consequence of non-compliance with the PIA and other relevant laws renders any exercise by the authority concerning import licences “null and void.”

The suit was filed by the three companies through their lawyers, Ahmed Raji, a Senior Advocate of Nigeria (SAN), and Chris Ekemezie.

The plaintiffs sought a declaration that the PIA does not prohibit petroleum products imports or prevent the NMDPRA from granting or renewing import licences for eligible operators.

In his judgment, Mr Ekwo held that the plaintiffs had successfully established their case and that the suit succeeded on its merits.

He said sections 31(a), (d), (l), 32(l), (s), (c), (u), (aa), (ii), (jj), and 211 of the PIA, read alongside Section 72 of the Federal Competition and Consumer Protection Act, require the NMDPRA to promote competition in the midstream and downstream petroleum sector.

The judge said the provisions also mandate the authority to prevent abuse of dominant positions and restrictive business practices.

He ordered the NMDPRA to continue to grant, issue, extend, renew or reissue licences, permits and authorisations for midstream and downstream operations, particularly for the importation of petroleum products, to the plaintiffs, subject to their fulfilment of all statutory and regulatory requirements.

In an affidavit, Sabiu Mahuta, Executive Director of A.A. Rano Nigeria Limited, said the NMDPRA had, since July 2025, only sporadically granted, extended, renewed or reissued petroleum products import licences to the plaintiffs.

Mr Mahuta said the authority’s action or inaction was entrenching market dominance and monopolisation of the downstream sector by local refineries.

“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.

Meanwhile, Mr Raji urged the court to hold that petroleum products importation alongside local production would promote competition, check monopoly and price-fixing, and improve the midstream and downstream petroleum sector.

The NMDPRA’s legal team also filed its processes in the matter.

The Case

In September 2024, Dangote Refinery, in suit number FHC/ABJ/CS/1324/2024, requested the Federal High Court in Abuja to award N100 billion in damages against the NMDPRA for issuing import licenses to some marketers and allowing the importation of petroleum products.

The marketers are NNPC Ltd, Matrix Petroleum Services Limited, AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, and 2015 Petroleum Limited.

In the suit dated 6 September 2024, the plaintiff’s lawyer, Ogwu Onoja, asked the court to declare that NMDPRA is allegedly in violation of Sections 317(8) and (9) of the Petroleum Industry Act by issuing licenses for the importation of petroleum products.

The refinery said such licenses should only be issued when a petroleum product shortfall exists. The refinery also urged the court to declare that NMDPRA violates its statutory responsibilities under the PIA for not encouraging local refineries.

In a counter affidavit marked FHC/ABJ/CS/1324/2024 dated 5 November 2024, and filed by Ahmed Raji (SAN), the marketers requested that the court dismiss the refinery’s claims, insisting that competitive practices are essential to Nigeria’s economic health and the oil sector’s viability.

They argued that they are fully qualified to receive an import licence from NMDPRA, under Section 317(9) of the PIA. The three defendants claim the plaintiff allegedly seeks to monopolise the petroleum industry in Nigeria, where it alone would control supply, distribution, and pricing.

NMDPRA further clarified that it issued oil licences to NNPC Limited and oil marketers to address petroleum product shortfalls in the country.

In its counter-affidavit, sworn to by Idris Musa, a Senior Regulatory Officer, NMDPRA, argued that the refinery was not entitled to the prayers sought. Mr Musa said the refinery’s production does not meet the national daily consumption requirement.

On 9 December 2024, the plaintiff sought a motion to amend its originating process to correct the name of the second defendant from “Nigeria National Petroleum Corporation Limited” to “Nigerian National Petroleum Company Limited.”

In response, the second defendant, NNPC Limited, raised a preliminary objection, arguing that the suit was incompetent and should be struck out for misidentification, among other grounds. The objection was supported by an affidavit deposed to by Isiaka Popoola, a litigation clerk in the law firm representing the company.

On 18 March 2025, the then-judge, Inyang Ekwo, dismissed the objection, ruling that the error in name did not render the suit defective. The court also held that the defendants should have responded to the substantive claims before raising procedural objections.

On 19 March 2025, the judge granted the plaintiff’s motion to amend its originating summons and directed parties to proceed on the merits of the case.

In July 2025, the Federal High Court in Abuja fixed 29 September for the hearing of a suit filed.

Judge Mohammed Umar fixed the date after counsel for Dangote Refinery, George Ibrahim (SAN), sought an adjournment to allow parties to regularise their processes.

On 28 July 2025, the refinery withdrew its lawsuit against the NMDPRA, NNPC Ltd, and the five petroleum companies. At the time, the case, filed at the Federal High Court in Abuja with suit number FHC/ABJ/CS/1324/2024, was formally discontinued by the plaintiff’s legal team.

No official reason was given in the filing for the decision to discontinue the case.

In November 2025, the Federal High Court in Abuja dismissed the refinery’s suit. The refinery’s lawyer, C. O. Adegbe, urged the court to terminate the case on the grounds of the refinery’s decision to withdraw it.

READ ALSO: DAPPMAN opposes Dangote’s fresh lawsuit on fuel import licences

In May 2026, the refinery filed a fresh lawsuit against Nigeria’s Attorney-General, seeking to overturn fuel import licences granted to oil marketers and NNPC Ltd.

The new filing before the Federal High Court in Lagos, according to Reuters, asks the court to nullify import licences issued or renewed by the NMDPRA.

Dangote argued that the approvals violate an earlier court order directing all parties to maintain the status quo.

In the suit, the refinery contended that licences granted to some marketers this month threaten its operations and run contrary to provisions of the law, which it said only permit fuel imports when domestic supply is insufficient to meet national demand.

In its reaction at the time, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) described the licences at the centre of the dispute as “the legal instruments through which Nigeria’s fuel supply chain functions.”

The association argued that the licences were issued under the PIA by an authority legally empowered to determine supply requirements.