Nigeria Court Orders Regulator To Continue Fuel Import Licences

A Nigerian court has ordered the downstream petroleum regulator to continue issuing fuel import licences and related permits to three oil marketing firms, ruling that any refusal would be inconsistent with the Petroleum Industry Act (PIA).

Justice Inyang Ekwo of the Federal High Court in Abuja said non-compliance with the PIA and other relevant laws would render any action by the regulator concerning import licences null and void.

The case was filed in June by Matrix Energy, AA Rano and AYM Shafa against the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) over its handling of their fuel import licences.

The court directed the NMDPRA to continue granting, issuing, extending, renewing or reissuing licences, permits and authorisations relating to petroleum products imports, provided the companies fulfil all applicable statutory and regulatory requirements.

The judge also held that provisions of the PIA and the Federal Competition and Consumer Protection Act require the regulator to promote competition in the midstream and downstream petroleum sectors and prevent abuse of dominant market positions and restrictive business practices.

The three marketers told the court that they had collectively invested more than $20 billion in infrastructure, logistics and retail networks supporting their petroleum distribution businesses across Nigeria.

The ruling comes amid a wider dispute over fuel imports and the growing role of locally refined petroleum products in Nigeria’s downstream market. A separate legal challenge by Dangote Refinery over the continued issuance of fuel import licences is pending before the Federal High Court in Lagos.

The Abuja ruling specifically concerns Matrix Energy, AA Rano and AYM Shafa and makes the issuance or renewal of their licences subject to fulfilment of the applicable statutory and regulatory conditions.

SOURCE: Reuters