Dangote Refinery: NMDPRA Considers Legal Action Over Regulatory Powers
The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, is considering its next legal steps after a Federal High Court in Lagos temporarily restrained the regulator from shutting down or interfering with operations at the Dangote Petroleum Refinery in the Lekki Free Zone. Justice Akintayo Aluko issued the interim injunction after the refinery challenged an August 24, 2026 directive allegedly issued by the NMDPRA ordering the suspension of the loading and truck-out of petroleum products from the facility. The court noted that Dangote Refinery was arguing that the regulator lacked oversight powers over petroleum operations within free zones, and also referred to a March 2 letter from the Attorney-General of the Federation which, according to the ruling, stated that the NMDPRA was not entitled to exercise regulatory powers over operations in free zones. NMDPRA spokesman George Ene-Ita declined to comment on the matter, saying it was before the court, while senior officials indicated that the agency’s management and legal team would determine its next course of action.
Dangote
The dispute centres on whether petroleum facilities operating within free zones remain subject to the Petroleum Industry Act and NMDPRA regulations. In a circular issued in May, the regulator maintained that companies operating in free zones, export processing zones and other designated areas are still required to comply with petroleum-sector laws. It argued that incentives granted to free zones, such as tax and customs benefits, do not remove the regulatory obligations of oil and gas operators. The NMDPRA also maintained that its statutory mandate covers midstream and downstream activities nationwide, including refining, storage, transportation, terminals, distribution and petroleum product sales within free zones. Dangote Refinery has asked the court to prevent the regulator and its agents from shutting down, restricting access to or interfering with its facilities and operations pending the determination of its substantive case. The court has adjourned the matter until September 9, 2026, when the motion on notice is scheduled for hearing.
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