The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is considering its next legal step after a Federal High Court in Lagos restrained the agency from shutting down or interfering with operations at the Dangote Petroleum Refinery in the Lekki Free Zone.
Justice Akintayo Aluko issued the interim injunction last week while ruling on a motion ex parte filed by Dangote Petroleum Refinery Nigeria Limited.
The refinery approached the court following an August 24, 2026 letter in which the NMDPRA allegedly directed the suspension of petroleum product loading and truck-out operations at the facility.
In granting the injunction, Justice Aluko said he had considered the application, affidavit evidence, exhibits and submissions from both sides, including the NMDPRA’s directive.
The court noted the refinery’s argument that the petroleum regulator lacked the authority to exercise regulatory or oversight powers over operations within free zones, including the Dangote Industrial Free Zone.
The judge also referred to a March 2, 2026 letter from the Attorney-General of the Federation, which, according to the court, stated that the NMDPRA was not entitled to exercise regulatory powers or oversight functions over operations within free zones.
Justice Aluko subsequently held that the refinery had met the conditions required for the grant of an interim injunction and granted the reliefs sought.
Speaking on the matter, NMDPRA spokesman George Ene-Ita declined to comment, saying the case was before the court.
He also declined to provide details on the reasons behind the regulator’s directive to stop loading operations at the refinery.
However, senior NMDPRA officials said the agency was reviewing the ruling and considering its next course of action. The agency’s legal team and management are expected to determine the appropriate response.
The dispute comes months after the NMDPRA reaffirmed its regulatory authority over petroleum companies operating within free zones, export processing zones and other designated areas.
In an industry circular issued in May, the regulator stated that companies operating midstream and downstream petroleum facilities in such zones remained subject to the Petroleum Industry Act 2021 and regulations made under it.
The authority maintained that the incentives attached to free zones, including tax benefits, customs waivers and simplified administrative procedures, do not exempt petroleum operators from compliance with the PIA.
According to the NMDPRA, its statutory mandate covers midstream and downstream petroleum activities across Nigeria, including free zones, export processing zones, industrial zones, territorial waters and the country’s exclusive economic zone.
The agency also listed refining, processing, storage, transportation, pipelines, terminals, importation, exportation, distribution and the sale of petroleum products and natural gas among activities subject to its regulatory oversight.
The latest court ruling therefore sets the stage for a potentially significant legal battle over the extent of the NMDPRA’s regulatory powers within free zones.
Dangote Refinery has asked the court to permanently restrain the NMDPRA, its officials and agents from enforcing the directive against the facility pending the determination of its substantive application.
The company is also seeking an order preventing the regulator from entering, sealing, shutting down, restricting access to, inspecting, supervising, sanctioning or otherwise interfering with its refinery, petrochemical, terminal, storage, blending, loading and truck-out operations within the Lekki Free Zone.
The case has been adjourned until September 9, 2026, for hearing of the motion on notice.
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