LAGOS: The Nigerian Midstream and Downstream Petroleum Regulatory Authority is considering its next legal move after a Federal High Court in Lagos barred it from shutting down or interfering with the operations of Dangote Petroleum Refinery in the Lekki Free Zone.
The development has intensified a growing dispute over whether the NMDPRA has regulatory authority over midstream and downstream petroleum facilities operating within free trade zones.
Last week, Justice Akintayo Aluko of the Federal High Court in Lagos granted an interim injunction restraining the regulator from shutting down or interfering with the operations of Dangote Petroleum Refinery Nigeria Limited.
The order followed an application filed by the refinery after the NMDPRA allegedly directed it, in a letter dated August 24, 2026, to suspend the loading and truck-out of petroleum products from its facility.
The refinery’s legal team, led by Olawale Akoni and Abimbola Akeredolu, argued that the NMDPRA lacked the regulatory or oversight powers to interfere with operations within the Dangote Industrial Free Zone.
In his ruling, Justice Aluko said he had considered the application, affidavit evidence, exhibits and submissions made by counsel, including the NMDPRA’s letter.
The judge also referred to a March 2, 2026, letter issued by the Attorney-General of the Federation, which he said indicated that the NMDPRA was not entitled to exercise regulatory powers or oversight functions over operations within free zones.
Justice Aluko subsequently ruled that the refinery had met the conditions required for the granting of an interim injunction.
The court therefore restrained the NMDPRA from enforcing its directive against the refinery pending the determination of the substantive application.
When contacted, NMDPRA spokesman George Ene-Ita declined to comment further, citing the fact that the matter was before the court.
I can’t comment on a case before the court,” he said.
Although he did not deny that the regulator issued the directive to the refinery, Ene-Ita did not disclose the reasons behind the order to stop the loading of petroleum products.
However, senior officials within the NMDPRA indicated that the authority was reviewing the court’s decision and considering its next step.
According to the officials, the agency’s management and legal team would determine the appropriate course of action regarding the case and the interim injunction.
The dispute stems from a broader disagreement over the application of petroleum regulations to companies operating in free zones.
In May 2026, the NMDPRA issued an industry circular asserting that petroleum companies operating within free zones, export processing zones and other designated areas remain subject to the Petroleum Industry Act 2021 and regulations made under the law.
The regulator maintained that operating within a free zone does not exempt a petroleum facility from compliance with the PIA.
“The operation of any midstream or downstream petroleum facility within a free zone, export processing zone or similar area does not exempt such facility and its operations from compliance with the provisions of the PIA and regulations made thereunder,” the agency stated.
The NMDPRA said its statutory mandate covers midstream and downstream petroleum activities across Nigeria, including free zones, export processing zones, industrial zones, territorial waters, the continental shelf and the exclusive economic zone.
It further maintained that it is responsible for the technical, commercial, operational and licensing regulation of midstream and downstream petroleum activities in the country.
According to the regulator, activities under its oversight include refining, processing, storage, bulk transportation, pipelines, gas transportation networks, terminals, jetties, wholesale supply, importation, exportation, distribution and the sale of natural gas and petroleum liquids.
The authority’s position, however, has come into direct conflict with the legal argument advanced by Dangote Refinery that its location within the Lekki Free Zone places its operations outside the regulator’s oversight powers.
The refinery had asked the court to restrain the NMDPRA, its officers, agents, representatives and anyone acting under its authority from enforcing the directive to shut down or restrict the facility pending the hearing and determination of its motion on notice.
The company also sought an order preventing the regulator and its agents from entering, sealing, shutting down, restricting access to, obstructing, suspending, disrupting, inspecting, supervising or sanctioning its refinery and related facilities.
The application covers the refinery’s petrochemical, terminal, storage, blending, loading and truck-out operations within the Lekki Free Zone.
The court granted the interim injunction and adjourned the matter until September 9, 2026, when the motion on notice is scheduled for hearing.
The outcome of the proceedings could have wider implications for the regulation of petroleum companies operating in Nigeria’s free zones and could determine the extent of the NMDPRA’s authority over such facilities.
