Court restrains NMDPRA from shutting down Dangote Refinery over regulatory dispute

Court restrains NMDPRA from shutting down Dangote Refinery over regulatory dispute

A Federal High Court in Lagos has restrained the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) from shutting down, sealing or interfering with the operations of the Dangote Petroleum Refinery at the Lekki Free Zone.

Justice Akintayo Aluko issued the interim order on Monday while ruling on an ex-parte application filed by Dangote Petroleum Refinery in suit No. FHC/L/CS/1174/2026.

The application was filed and argued by a legal team led by Senior Advocate of Nigeria Olawale Akoni.

The court intervention followed a directive issued by NMDPRA on August 24, 2026, ordering the suspension of loading and truck-out of petroleum products from the Dangote Refinery.

Following the directive, the refinery approached the court seeking an urgent order preventing the regulator from implementing the suspension pending the hearing and determination of its substantive application.

Dangote asked the court to restrain NMDPRA, its officials, agents, representatives and anyone acting under its authority from enforcing or taking further steps pursuant to the August 24 directive.

The refinery also sought protection against any attempt by the regulator to enter its facilities, seal or shut down the refinery, restrict access, obstruct operations, suspend activities, inspect, supervise, sanction or otherwise interfere with its refinery, petrochemical, terminal, storage, blending, loading and truck-out facilities within the Lekki Free Zone.

Justice Aluko said he had carefully considered Dangote’s application, which was supported by a 42-paragraph affidavit and Exhibits A1 to A6, as well as the submissions of counsel.

The judge also considered correspondence between the parties, including the August 24 letter from NMDPRA that formed the basis of the dispute.

A major issue considered by the court was the extent of NMDPRA’s authority to exercise regulatory and oversight powers within free zones pending determination of the substantive case.

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Justice Aluko referred to a letter dated March 2, 2026, issued by the Attorney-General of the Federation, which, according to the judge, stated that NMDPRA was not entitled to exercise regulatory powers or oversight functions over operations within free zones.

The judge said this position appeared to be at odds with NMDPRA’s August 24 directive, which purported to exercise such regulatory authority over activities at the Dangote facility.

Justice Aluko stressed that courts have an inherent responsibility to preserve the subject matter of litigation and prevent circumstances that could alter or undermine it before the substantive dispute is resolved.

He held that Dangote had satisfied the conditions required for the grant of an interim injunction.

The refinery also gave an undertaking to compensate NMDPRA in damages if it is subsequently determined that the court should not have granted the order.

“Accordingly, I find merit in the application, and the same is hereby granted in terms of the reliefs sought,” the judge ruled.

He directed Dangote to file a formal undertaking as to damages and ordered that the court’s order and notice be served on NMDPRA.

The matter has been adjourned until September 9, 2026, for the hearing of the motion on notice.

The latest order temporarily prevents NMDPRA from carrying out the specific measures challenged by Dangote while the substantive application is considered.

However, the ruling does not amount to a final judgment that NMDPRA has no regulatory authority over the Dangote Refinery.

The central issue remains whether the petroleum regulator can lawfully exercise its statutory oversight powers over petroleum operations conducted within the Lekki Free Zone, and, if so, the scope of those powers.

The case could have implications beyond Dangote Refinery because the dispute touches on the respective regulatory responsibilities of agencies operating within Nigeria’s oil and gas free zones.

The Dangote Refinery, with a nameplate capacity of about 650,000 barrels per day, has become a major component of Nigeria’s strategy to increase domestic refining and reduce dependence on imported petroleum products.

The facility’s emergence has also generated disagreements involving domestic crude supply, petroleum imports, product pricing and the regulatory framework governing Nigeria’s downstream petroleum industry.

Dangote Refinery has previously challenged aspects of NMDPRA‘s regulation of petroleum imports, particularly the issuance and renewal of licences allowing petroleum products to be brought into Nigeria.

The refinery has argued that continued importation of refined products could undermine investments in domestic refining capacity.

The regulatory disagreement comes as Dangote Refinery seeks to increase its role in supplying petrol, diesel, aviation fuel and other refined petroleum products to the Nigerian market and neighbouring countries.

The facility has increasingly become central to discussions about Nigeria’s energy security, domestic crude utilisation and the future of the country’s petroleum downstream sector.

The latest court order also places renewed attention on the legal status of operations carried out within Nigeria’s free zones and the boundaries between the various government agencies responsible for petroleum regulation.

For now, Dangote Refinery can continue the operations covered by the court order without the threatened enforcement measures from NMDPRA, pending further proceedings.

The next major development is expected on September 9, when the Federal High Court will hear Dangote’s motion on notice.

The outcome of the proceedings could provide greater clarity on the extent of NMDPRA’s regulatory oversight over Dangote Refinery and other petroleum operations within free zones.

Until then, the interim injunction remains in force, leaving the substantive regulatory dispute between Dangote Refinery and NMDPRA to be determined by the court.

Court restrains NMDPRA from shutting down Dangote Refinery over regulatory dispute