The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is now in a legal standoff with Dangote Petroleum Refinery. This situation arose after a court granted the refinery an interim injunction against the regulator. The order, which was issued by Justice Akintayo Aluko of the Federal High Court in Lagos, prevents the NMDPRA from shutting down or interfering with the operations at the Lekki Free Zone.
This legal battle kicked off after the NMDPRA allegedly sent a letter on August 24, 2026. This letter directed the refinery to suspend the loading and truck-out of its petroleum products. The refinery, represented by a legal team including Olawale Akoni and Abimbola Akeredolu, promptly approached the court. They argued that the NMDPRA lacks regulatory power over companies operating within free trade zones. They specifically cited the Dangote Industrial Free Zone.
In his ruling, Justice Aluko pointed to a crucial letter from the Attorney-General of the Federation, dated March 2, 2026. According to the judge, this letter stated that the NMDPRA wasn't empowered to exercise regulatory or oversight functions within these special economic zones. The judge found that the refinery had met the necessary conditions for the court to grant the interim injunction.
When reached for comment, George Ene-Ita, the NMDPRA's spokesman, declined to elaborate. He stated, "I can’t comment on a case before the court." He didn’t deny the existence of the letter ordering the shutdown but offered no reasons for the directive. However, other senior NMDPRA officials indicated that the agency's legal team and management are actively considering their next steps in response to the court's ruling.
This development comes after the NMDPRA issued an industry circular in May. This circular asserted that companies operating in free zones, export processing zones, and similar designated areas remain subject to the Petroleum Industry Act 2021. Free zones are government-established areas offering incentives like tax breaks and customs waivers to attract investment. The NMDPRA's stance was clear: such benefits don't exempt oil and gas operators from the industry's regulations.
The circular from the authority was addressed to various midstream and downstream petroleum companies, petrochemical firms, and fertiliser companies. It reaffirmed its statutory mandate. It clarified that its regulatory powers cover all midstream and downstream petroleum activities across Nigeria. This includes territorial waters, exclusive economic zones, and all designated areas, irrespective of free zone status. The agency sees itself as the sole technical, commercial, operational, and licensing regulator for these operations.
The NMDPRA's mandate, as it sees it, extends to refining, processing, storage, transportation, and distribution of petroleum products and natural gas. The current court ruling forces the NMDPRA to defend its asserted authority over operations within free zones. This defense will continue while the court deliberates further on the extent of its powers. The refinery, meanwhile, has asked the court to permanently restrain the regulator from interfering with its operations.
This legal tussle highlights a broader question about regulatory jurisdiction in Nigeria's rapidly developing economic zones. It could set a precedent for how such areas are governed. The Dangote Refinery, a massive project aimed at boosting Nigeria's refining capacity, is a key player in the nation's energy landscape. Any disruption to its operations has significant implications for fuel supply and the economy.