Nigerian Court Requires Continued Issuance of Import Permits to Three Fuel Traders

en.Wedoany.com Reported - On September 28, the Federal High Court in Abuja, Nigeria ruled that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) should continue to issue fuel import licenses and related permits to three fuel traders: Matrix Energy, AA Rano, and AYM Shafa. The court held that if the regulator refuses to issue the relevant permits, it would be inconsistent with the relevant provisions of the Petroleum Industry Act.

The case was filed by the three companies in June of this year, with the core dispute being NMDPRA's handling of fuel import permits. Presiding Judge Inyang Ekwo stated in the ruling that the regulator's measures regarding import licenses must comply with the Petroleum Industry Act and relevant legal requirements, otherwise the corresponding administrative actions may be invalidated.

Materials submitted to the court by the three companies show that they have cumulatively invested over 20 billion US dollars in infrastructure, logistics, and retail networks related to Nigeria's fuel distribution business. This ruling directly concerns the regulatory pathway for these enterprises' subsequent applications for fuel import licenses and related supporting permits.

NMDPRA currently accepts relevant applications through the petroleum products import and export permit system. Its current system requires importers to submit proof of financial capability, records of international petroleum product trading, and, where applicable, wholesale petroleum liquids supply licenses and other materials; import permits can only be obtained after the application is approved.