NMDPRA faces court order on import licences and new digital tracking for community funds

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is utilizing a digital portal to track Host Community Development Trust (HCDT) contributions. Under the Petroleum Industry Act (PIA), the portal automatically calculates the required three per cent contribution from operators’ annual operating expenditures. The system is designed to prevent the manipulation of financial figures and allows host community members to submit anonymous petitions regarding fund mismanagement or corruption.

Separately, the Federal High Court in Abuja has ordered the NMDPRA to continue granting petroleum product import licences to Matrix Energy, AA Rano, and AYM Shafa. Justice Inyang Ekwo ruled that the authority’s previous refusal to issue or renew these licences was in direct non-compliance with the PIA. The court emphasized that the NMDPRA is mandated to promote competition in the midstream and downstream petroleum sectors and must prevent restrictive business practices.