Court extends order shielding Dangote refinery from NMDPRA action

The Federal High Court in Lagos has extended an interim order restraining the Nigerian Midstream and Downstream Petroleum Regulatory Authority from interfering with operations at the Dangote Petroleum Refinery.

The order was extended on Wednesday as the court heard arguments in a dispute over NMDPRA’s decision to halt propane loading and truck-out activities at the refinery.

Justice Akintayo Aluko said he could not fix a date for the substantive hearing because his jurisdiction as a vacation judge expires on Friday. He consequently directed that the case file be returned to the registry for assignment to the regular court by the administrative judge.

The judge said, “I find it proper to extend the interim order made on the 31st day of August 2026. It shall continue to subsist and shall be in force till the hearing and determination of the motion on notice, or until the court gives further directive.”

The court had on August 31 barred NMDPRA, its officials, agents and representatives from entering, sealing, shutting down, restricting access to, obstructing, suspending, disrupting, inspecting, supervising or sanctioning the refinery’s operations pending the determination of the substantive application.

At Wednesday’s proceedings, NMDPRA asked the court to discharge the order, arguing that Dangote had obtained it through alleged misrepresentation and suppression of material facts.

The regulator, represented by counsel Matthew Burkaa, also questioned the court’s jurisdiction to grant the order, arguing that the refinery did not file the required motion on notice when its ex-parte application was heard.

NMDPRA said its action followed an investigation into the quality and distribution of propane after laboratory tests on LPG samples from Selai, Tewa and Ameego Pago allegedly showed propane levels above 50 per cent.

According to the regulator, industry specifications require LPG blends to contain no more than 20 per cent propane and about 80 per cent butane.

It said representatives of the three plants were invited to explain the findings and identified Sublime Oil and Gas Limited, an off-taker from Dangote Refinery, as their source of propane.

The development, NMDPRA said, led to a wider reconciliation and material-balance exercise involving propane-producing facilities and LPG blending plants.

The authority further alleged that its officials were refused access to inspect propane-loading activities and records at the Dangote refinery on August 24.

It subsequently issued a notice of potential non-compliance and directed the suspension of propane loading and truck-out operations pending the conclusion of its investigation and the introduction of additional safety measures.

NMDPRA told the court that its review of truck-out manifests allegedly uncovered discrepancies in the movement of propane.

It alleged that Sublime Oil and Gas lifted 25 trucks of propane on August 20 and 22 for delivery to Navgas/Agasco, but Navgas confirmed receiving only six of the consignments.

The regulator said the whereabouts of the remaining 19 trucks were unknown.

It also alleged that an off-taker in Delta State loaded 52 trucks between May and August 2026 for delivery to Navgas, but Navgas reportedly confirmed that it received none of them.

NMDPRA argued that the alleged diversion of propane to unlicensed or unauthorised customers presented public safety concerns because the product could be used for LPG blending outside approved specifications.

The authority further claimed that propane produced by Dangote and other gas-processing facilities had vapour pressure of about 13 bar, compared with the seven-bar maximum required for the standard propane-butane LPG mixture.

It argued that the higher pressure could create an explosion risk at LPG refilling facilities not designed to handle the product.

Dangote Group, however, rejected the regulator’s allegations and maintained that NMDPRA officials stationed at the refinery had inspected and certified the propane before it was released.

The group’s spokesman, Anthony Chiejina, questioned why the refinery should be held responsible for what happened to the product after it was purchased and transported by independent off-takers.

“We have NMDPRA staff there in the refinery. They inspected and certified the product as okay. Then, a company came to pick up the product with its truck, not Dangote’s truck. You later arrested the truck somewhere else and said it was conveying adulterated or blended propane. How does that concern us after you tested and certified our product okay?” he said.

Chiejina also accused the regulator of exceeding its powers.

“You went to the plant to seal it and later left the plant. For me, that is an absolute abuse of power by NMDPRA. And that is just a diabolical sense of control. It makes no sense. That’s what led to the court action,” he said.

He challenged NMDPRA to produce evidence showing that the refinery was responsible for any alleged blending or diversion of the product.

“They have a hidden transcript. Assuming you entered our refinery and discovered that what we have there is blended, that’s a different thing. You have earlier certified the product,” Chiejina said.

On the movement of propane after it leaves the refinery, he added, “Let them go and check their records. And the owner of the truck has left with his truck. Where he goes with his truck – is it my business? He does what he likes with his products.”

At the hearing, Dangote Refinery’s counsel, Wale Akoni, SAN, told the court that the refinery needed time to respond to NMDPRA’s counter-affidavit.

Akoni said he had only been served with the document in court on Wednesday and requested a short adjournment.

Although Burkaa did not oppose the request, he stressed the urgency of the case, citing the safety concerns raised by the regulator.

Justice Aluko said the matter would have to be transferred to the regular court because his authority as vacation judge would lapse at the end of the week.

“My jurisdiction ends on Friday as far as the vacation matter is concerned. Therefore, the Admin Judge will, in his wisdom, decide where the case file should go,” he said.

The judge directed the registry to return the case file for reassignment, saying, “The case file is hereby remitted to the registry for assignment to the regular court by the Honourable Administrative Judge.”

The interim protection granted to Dangote Refinery will therefore remain in force pending the hearing and determination of the motion on notice, leaving the regulator’s action over propane loading, alleged truck diversion and product safety unresolved.