The Nigerian Midstream and Downstream Petroleum Regulatory Authority is considering its next legal move after a Federal High Court in Lagos restrained it from interfering with the operations of the Dangote Petroleum Refinery.
Justice Akintayo Aluko had last week issued an interim injunction stopping the regulator from shutting down or disrupting the refinery’s activities in the Lekki Free Zone.
The order followed an application by Dangote Petroleum Refinery Nigeria Limited challenging an August 24, 2026 directive allegedly issued by the NMDPRA to suspend the loading and truck-out of petroleum products from the facility.
The refinery argued that the NMDPRA lacked regulatory authority over operations within free zones.
In granting the injunction, Justice Aluko cited a March 2, 2026 letter from the Attorney-General of the Federation which, according to the judge, stated that the NMDPRA was not entitled to exercise regulatory or oversight powers over activities in free zones.
“Accordingly, I find merit in the application, and the same is hereby granted in terms of the reliefs sought,” Aluko ruled.
NMDPRA spokesman, George Ene-Ita, declined to comment on the matter, saying, “I can’t comment on a case before the court.”
He also declined to explain why the regulator had directed the refinery to stop loading petroleum products.
However, senior officials of the authority said its management and legal team were reviewing the ruling and considering the appropriate response. They said the agency’s legal team and management “will decide the next line of action”.
The dispute comes months after the NMDPRA reaffirmed its position that petroleum companies operating in free zones remain subject to the Petroleum Industry Act 2021.
In a May industry circular, the regulator said operators in free zones, export processing zones and other designated areas must comply with the PIA and regulations made under it.
The authority said incentives enjoyed by businesses in free zones did not exempt petroleum operators from regulatory requirements.
“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,” it stated.
The NMDPRA maintained that its regulatory mandate covers midstream and downstream petroleum activities nationwide, including those carried out in free zones and other designated areas.
The latest ruling has therefore brought the regulator’s authority over petroleum facilities in free zones into sharp legal focus.
Dangote Refinery is seeking a further order restraining the NMDPRA, its officials and agents from enforcing the directive or interfering with its refinery, petrochemical, terminal, storage, blending, loading and truck-out operations pending the determination of the substantive suit.
The case has been adjourned until September 9, 2026, for hearing of the motion on notice.