A Federal High Court in Abuja has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to continue granting fuel import licences and related permits to three oil marketing companies.

The order followed a legal challenge brought by Matrix Energy, AA Rano and AYM Shafa over the regulator’s handling of petroleum import licences.

Justice Inyang Ekwo ruled that any action by the regulator that fails to comply with the provisions of the Petroleum Industry Act would have no legal effect.

The marketers had approached the court in June, arguing that their businesses and investments depended on the continued validity of their licences to import and distribute petroleum products.

The companies told the court that they had invested more than $20 billion in infrastructure, logistics and retail networks supporting their fuel distribution operations across Nigeria.

The ruling comes amid renewed concerns over petrol prices and supply conditions in the country, with marketers continuing to rely on a combination of domestic refining and imports to meet demand.

The court’s decision means NMDPRA must continue processing the relevant import licences and permits for the affected companies in line with the requirements of the Petroleum Industry Act.

The development could also influence competition in Nigeria’s downstream petroleum market, particularly as domestic refining capacity expands and oil marketers seek access to imported products.

Nigeria has increasingly relied on private-sector refineries to reduce dependence on imported petroleum products, but import licences remain an important part of the supply chain when domestic output does not fully meet market demand.