Dangote refinery: NMDPRA weighs legal action over free-zone powers

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is considering its legal options after a Federal High Court in Lagos temporarily barred it from interfering with the operations of Dangote Petroleum Refinery in the Lekki Free Zone.

The development has put the regulator’s authority over petroleum facilities operating within Nigeria’s free zones at the centre of a fresh legal dispute.

The court, presided over by Justice Akintayo Aluko, granted an interim injunction restraining the NMDPRA from shutting down or disrupting activities at the refinery.

The order followed an ex parte application filed by Dangote Petroleum Refinery Nigeria Limited in suit number FHC/L/CS/1174/26.

The company approached the court after receiving a letter dated August 24, 2026, allegedly directing it to suspend the loading and truck-out of petroleum products from the facility.

In granting the application, Justice Aluko said he had examined the affidavit evidence, exhibits and arguments presented by the parties, including the NMDPRA’s correspondence.

A key issue before the court was whether the petroleum regulator had statutory authority to exercise oversight over operations located within free zones, including the Dangote Industrial Free Zone.

The judge also considered a March 2, 2026 letter from the Attorney-General of the Federation, which, according to the ruling, indicated that the NMDPRA lacked regulatory and oversight powers over activities within free zones.

Justice Aluko held that the refinery had met the requirements for the interim relief and granted the application.

“Accordingly, I find merit in the application, and the same is hereby granted in terms of the reliefs sought,” the judge ruled.

The NMDPRA has so far declined to disclose the circumstances surrounding the directive reportedly issued to the refinery.

Its spokesman, George Ene-Ita, said he could not comment on a matter before the court.

“I can’t comment on a case before the court,” he said.

However, senior officials of the regulator indicated that the agency was reviewing the ruling and would determine its next course of action through its management and legal team.

The dispute comes months after the NMDPRA expressly asserted its jurisdiction over petroleum companies operating within free zones and other specially designated areas.

In an industry circular issued in May, the authority said companies involved in midstream and downstream petroleum activities could not rely on free-zone status to avoid compliance with the Petroleum Industry Act, 2021.

“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 regulator stated.

The NMDPRA said its jurisdiction covers petroleum activities across Nigeria, including free zones, export processing zones, industrial zones, territorial waters, the continental shelf and the exclusive economic zone.

It maintained that it is responsible for the technical, commercial, operational and licensing regulation of midstream and downstream petroleum activities nationwide.

The regulator specifically listed refining, processing, storage, transportation, pipelines, terminals, jetties, wholesale supply, importation, exportation and distribution of petroleum products and natural gas among activities subject to its oversight.

Free zones, meanwhile, are established to attract investment and promote industrial development by offering incentives such as tax reliefs, customs exemptions and simplified administrative procedures.

The present case therefore raises questions over the extent to which those incentives affect the application of petroleum-sector regulations to oil and gas facilities operating within such zones.

In its court application, Dangote Refinery asked for protection against the enforcement of the NMDPRA directive pending the determination of its substantive motion.

The company sought an order preventing the regulator, its officials or agents from entering, sealing, shutting down or restricting access to its facilities.

It also asked the court to restrain the NMDPRA from obstructing, suspending, disrupting, inspecting, supervising or sanctioning activities connected with the refinery, petrochemical plant, terminal, storage, blending, loading and truck-out facilities within the Lekki Free Zone.

The interim order will remain relevant as the court considers the broader question of the regulator’s jurisdiction.

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