Court Stops NMDPRA from Shutting Down Dangote Refinery
By Aboki Forex —
A Federal High Court in Lagos has restrained the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) from shutting down or disrupting operations at the Dangote Refinery. The interim order came after the regulator directed the suspension of loading and truck-out of petroleum products from the plant.
The dispute centres on the refinery's free trade zone status and how much regulatory power NMDPRA can exercise inside that zone. The case returns to court on September 9, 2026.
What Triggered the Court Action
NMDPRA issued a letter on August 24, 2026, directing the suspension of loading and truck-out of petroleum products from the Dangote Refinery. Dangote Refinery then approached the Federal High Court in Lagos to stop the regulator from enforcing the directive or interfering with operations at the Lekki Free Zone.
On August 31, Justice Akintayo Aluko granted an interim injunction restraining NMDPRA from sealing, shutting down, obstructing, suspending or otherwise disrupting the refinery's operations, pending further proceedings. Multiple media reports, including The Punch and PetroleumPriceNG, confirmed the ruling.
The Free Zone Fight
The core question is whether NMDPRA can apply its normal regulatory and oversight powers to a facility operating within a free zone. Dangote's position is that the refinery operates inside the Dangote Industrial Free Zone and is therefore protected from certain forms of direct regulatory intervention.
Justice Aluko said the court considered a March 2, 2026 letter from the Attorney-General of the Federation which, according to the ruling, stated that NMDPRA was not entitled to exercise regulatory or oversight functions over operations within free zones. However, the interim order does not amount to a final ruling on the regulator's powers. That remains for substantive judicial determination.
Earlier Battle Over Import Licences
This is not the first fight between Dangote and NMDPRA. Dangote had previously challenged the regulator's issuance of import licences to NNPC and other oil marketers, arguing that sections 317(8) and 317(9) of the Petroleum Industry Act restrict imports where domestic supply is sufficient.
NMDPRA argued that imports could be authorised to bridge supply shortfalls and maintain adequate petroleum-product availability. Dangote eventually withdrew that earlier lawsuit in 2025.
Broader Market Battle
The disagreement also highlights a wider debate over competition in Nigeria's downstream petroleum market. Dangote has repeatedly opposed what it sees as unnecessary fuel imports when local refining capacity can supply the market. Regulators and industry players have argued that alternative supply sources remain important when domestic production does not fully meet national demand.
Oil marketers have also warned against policies that could give a single refinery excessive influence over fuel availability and prices. Legit.ng earlier reported that Dangote threatened to cut off petrol sales to major marketers who continue importing fuel, citing concerns about product quality and the blending of imported petrol with its own output. The restriction could take effect as early as this week, sources said.
For now, NMDPRA is restrained from enforcing the August 24 directive. The September 9 hearing could settle how far the petroleum regulator can exercise its powers inside a free zone. That decision will shape Nigeria's refining industry, fuel supply and the future of petroleum regulation.