Lagos Court Stops NMDPRA From Shutting Down Dangote Refinery
By Aboki Forex —
A Federal High Court in Lagos has barred the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) from shutting down or interfering with operations at the Dangote Petroleum Refinery in the Lekki Free Zone. Justice Akintayo Aluko granted the interim injunction on Monday while ruling on an ex parte motion marked FHC/L/CS/1174/26.
The Court Order
The order follows an August 24, 2026 letter in which the NMDPRA directed the suspension of petroleum product loading and truck-out at the refinery. Justice Aluko adjourned the case to September 9, 2026, for the hearing of the motion on notice.
The application was filed and argued by counsel to Dangote Petroleum Refinery Nigeria Limited, led by Olawale Akoni and Abimbola Akeredolu, both Senior Advocates of Nigeria.
The Dispute
The refinery asked the court to restrain the NMDPRA, its officers, agents, and anyone acting under its authority from entering, sealing, shutting down, restricting access to, obstructing, inspecting, or otherwise interfering with its refinery, petrochemical, terminal, storage, blending, loading, truck-out and related facilities and operations within the Lekki Free Zone.
Akeredolu told the court the application was supported by a 42-paragraph affidavit deposed to by Wale Aroge, a written address, and documentary exhibits marked A1 to A6. After reviewing the submissions, Justice Aluko identified the central question as whether the NMDPRA held regulatory authority over operations within free zones at all.
The judge pointed to a letter dated March 2, 2026, from the Attorney-General of the Federation, which he said stated that the NMDPRA was not entitled to exercise regulatory powers or oversight functions over operations within free zones.
The Ruling
Justice Aluko said: "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." He held that the affidavit disclosed serious issues requiring determination and that the urgency of the matter had been adequately established.
The judge also noted that the refinery had undertaken to indemnify the NMDPRA in damages if the order was later found to have been wrongly granted. Justice Aluko ruled: "Accordingly, I find merit in the application, and the same is hereby granted in terms of the reliefs sought. The plaintiff shall file a formal undertaking as to damages." He directed that the order and notice of hearing be formally served on the NMDPRA.
Oil Price Context
The case comes as global crude oil prices jumped sharply after US President Donald Trump announced a naval blockade targeting Iran, heightening concerns about possible disruptions to global oil supplies. Brent crude, the international benchmark, climbed by more than 8% on Monday to trade above $103 per barrel, crossing the key $100 threshold after briefly rising above $111 per barrel last week. US West Texas Intermediate (WTI) also advanced, reaching $104.90 per barrel as of 5:25 a.m. WAT.
The next hearing at the Federal High Court is scheduled for September 9, 2026. The outcome will determine whether the NMDPRA can enforce its directive against the refinery.