Court Stops NMDPRA From Acting Against Dangote Refinery in High-Stakes Regulatory Dispute

A Federal High Court in Lagos has temporarily stopped the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) from enforcing its directive that suspended the loading and distribution of petroleum products from the Dangote Petroleum Refinery, setting the stage for a major legal showdown over regulatory authority within Nigeria’s free trade zones.

Justice Akintayo Aluko granted the interim order on Monday following an ex-parte application filed by Dangote Petroleum Refinery and Petrochemicals FZE, effectively shielding the refinery from any enforcement action by the regulator pending the determination of a substantive motion before the court.

The dispute stems from an August 24, 2026 directive issued by the NMDPRA, which ordered the suspension of loading and truck-out activities at the refinery’s facilities located in the Lekki Free Zone. In response, Dangote Refinery approached the court, arguing that the regulator lacked the legal authority to exercise oversight powers within a designated free zone.

In his ruling, Justice Aluko restrained the NMDPRA, its officials, agents and representatives from entering the refinery premises, sealing facilities, restricting operations, conducting inspections, imposing sanctions or taking any action capable of disrupting activities at the refinery until the court determines the pending application.

The judge noted that documents and evidence presented by the refinery raised critical legal questions that deserved judicial examination, particularly the issue of whether the NMDPRA possesses regulatory powers over businesses operating within free zones.

According to the court, Dangote’s position is that the refinery, situated within the Dangote Industrial Free Zone, is not subject to the regulatory oversight being asserted by the petroleum regulator.

Justice Aluko also referenced a letter reportedly issued by the Attorney-General of the Federation on March 2, 2026, which, according to the court, indicated that the NMDPRA was not entitled to exercise regulatory or supervisory powers over operations within free zones.

The court observed that the central issue requiring determination was whether the regulator should be allowed to continue exercising such authority before the substantive legal questions are resolved.

The judge held that the affidavit evidence submitted by the refinery revealed substantial issues requiring urgent judicial intervention and justified the need to preserve the status quo pending the hearing of the motion on notice.

He emphasized that courts possess an inherent responsibility to protect the subject matter of litigation from being altered or destroyed before a final decision is reached.

Having reviewed the application, the court concluded that Dangote Refinery had satisfied all legal requirements for the grant of an interim injunction.

Justice Aluko also took into consideration the refinery’s undertaking to compensate the regulator in damages should it later be determined that the injunction ought not to have been granted.

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Consequently, the court granted all the reliefs sought by the refinery and directed that the interim order be formally served on the NMDPRA. Dangote was also ordered to file a formal undertaking as to damages.

The ruling effectively prevents the regulator from implementing its controversial August 24 directive or carrying out any enforcement measures against the refinery until the matter is fully heard.

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

Meanwhile, the latest legal battle is separate from another ongoing suit filed by Dangote Refinery challenging the issuance and renewal of fuel import licences to NNPC Limited and several petroleum marketers.

That case, which was scheduled to come up before Justice Chukwujekwu Aneke on Monday, was postponed until October 7 due to the judge’s absence on health grounds.

In the separate suit, Dangote Refinery is seeking to invalidate fuel import licences issued to marketers and restrain relevant authorities from approving further imports of Premium Motor Spirit (PMS), Automotive Gas Oil (AGO) and Jet A1 fuel pending the determination of the case.

The refinery argues that continued approval of import licences undermines local refining efforts and violates provisions of the Petroleum Industry Act (PIA), which it interprets as permitting fuel imports only when domestic production is insufficient to meet national demand.

Dangote maintains that its 650,000-barrel-per-day refinery has the capacity to satisfy Nigeria’s fuel requirements while also producing surplus volumes for export. The company further claims that available regulatory data shows local production of petrol and diesel now exceeds domestic consumption.

However, NNPC Limited has rejected those claims and urged the court to dismiss the suit. The national oil company argues that neither the Petroleum Industry Act nor the Federal Government’s Backward Integration Policy imposes an outright ban on fuel imports.

According to NNPC, imports remain necessary in certain circumstances to guarantee energy security, maintain product availability and stabilize market prices. The company also insists that the NMDPRA acted within the powers granted to it by law when issuing the disputed licences.

With two major court battles now unfolding simultaneously, the outcome of the cases could have far-reaching implications for Nigeria’s petroleum industry, regulatory framework and the future role of local refining in the country’s energy sector.