NMDPRA CONSIDERS LEGAL OPTIONS IN DANGOTE REFINERY REGULATORY DISPUTE

The Nigerian Midstream and Downstream Petroleum Regulatory Authority is considering its next legal move after a Federal High Court in Lagos temporarily restrained it from interfering with the operations of the Dangote Petroleum Refinery in the Lekki Free Zone. The development has intensified a dispute over whether the petroleum regulator has the authority to exercise regulatory powers over companies operating within designated free zones.

The refinery approached the court after the NMDPRA, in a letter dated August 24, 2026, allegedly directed the suspension of the loading and truck-out of petroleum products from the facility. Dangote Petroleum Refinery subsequently sought an interim injunction preventing the regulator, its officials or agents from shutting down, restricting access to, inspecting, supervising, sanctioning or otherwise disrupting activities at the refinery and its related facilities within the Lekki Free Zone.

Justice Akintayo Aluko granted the interim injunction after considering the refinery's application, affidavit evidence, exhibits and submissions from the parties. The judge noted that the refinery's case raised a major question over whether the NMDPRA could exercise regulatory and oversight powers within a free zone. The court also referred to a March 2, 2026 letter from the Attorney-General of the Federation which, according to the ruling, stated that the NMDPRA was not entitled to exercise such powers over operations within free zones.

The NMDPRA, however, has previously maintained that petroleum companies operating in free zones, export processing zones and other designated areas remain subject to the Petroleum Industry Act and regulations made under it. In an industry circular issued in May, the authority said midstream and downstream activities including refining, storage, transportation, importation, exportation and distribution remain under its regulatory oversight. The latest court order therefore places the regulator's interpretation of its statutory powers at the centre of the legal dispute.

The NMDPRA's spokesman, George Ene-Ita, declined to comment further, saying the matter was before the court, while senior officials indicated that the agency's management and legal team would determine its next course of action. The case is scheduled for hearing on September 9, 2026, when the court is expected to consider Dangote Refinery's motion on notice. The outcome could have wider implications for the regulation of petroleum businesses operating within Nigeria's free zones.