A Federal High Court in Lagos has issued an interim injunction restraining the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) from interfering with the operations of the Dangote Petroleum Refinery in exercising its oversight authority.
Justice Akintayo Aluko granted the order on Monday following an ex parte application by the refinery challenging NMDPRA’s August 24, 2026, directive suspending the loading and truck-out of petroleum products from the facility.
The court barred NMDPRA, its officers, agents, and representatives from entering, sealing, shutting down, restricting access to, suspending, inspecting, sanctioning, or otherwise interfering with the refinery’s operations based in the Lekki Free Trade Zone.
The order remains in effect pending the determination of the refinery’s motion on notice.
Justice Aluko noted that the case raises a serious legal question: whether NMDPRA possesses regulatory or oversight powers over operations within free zones.
In his ruling, the judge referred to a March 2, 2026, letter from the Attorney-General of the Federation, which “clearly stated” that NMDPRA is not entitled to exercise regulatory powers or oversight functions over operations within free zones.
The judge contrasted this with NMDPRA’s August 24 directive, through which the regulator “purported to exercise such powers”.
“The important question, therefore, is whether the defendant can or should be allowed to exercise such regulatory authority pending the determination of the substantive issues before the court,” Justice Aluko held.
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Refinery Seeks Protection from Regulatory Interference
The Dangote Petroleum Refinery and Petrochemicals, represented by Senior Advocates of Nigeria Olawale Akoni and Abimbola Akeredolu, filed suit No. FHC/L/CS/1174/2026.
The company argued that NMDPRA lacked the authority to exercise regulatory powers over its operations within the Lekki Free Zone.
Justice Aluko held that the materials before the court disclosed “serious issues for determination” and demonstrated an urgent need for judicial intervention.
The judge noted that courts have inherent power and duty to preserve the subject matter of litigation and prevent it from being destroyed or altered before the substantive application is determined.
The court took note of Dangote’s undertaking to indemnify NMDPRA in damages should it subsequently be established that the interim order ought not to have been granted.
Justice Aluko directed Dangote to file a formal undertaking as to damages and ordered that the interim order and notice of the court be served on NMDPRA.
Case Adjourned for Hearing
The court adjourned the matter to September 9, 2026, for the hearing of the motion on notice.
The ruling does not amount to a final judgement on NMDPRA’s regulatory authority over the Dangote Refinery.
The central issue of whether the petroleum regulator can lawfully exercise its statutory oversight powers over petroleum operations conducted within the Lekki Free Zone remains to be determined by the court.
The case is separate from another suit filed by Dangote Refinery challenging the issuance and renewal of fuel import licences to NNPC Limited and several petroleum marketers, which was adjourned to October 7, 2026.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X