Court blocks NMDPRA from shutting Dangote Refinery amid regulatory power dispute
A Federal High Court in Lagos has temporarily restrained the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) from shutting down or interfering with the operations of the Dangote Refinery, turning a regulatory dispute into a major legal test over the limits of government oversight in Nigeria’s free zones.
Justice Akintayo Aluko issued the interim order on Monday after Dangote Petroleum Refinery challenged an August 24 directive by NMDPRA suspending the loading and truck-out of petroleum products from the refinery.
Dangote had asked the court to prevent NMDPRA and its officials from enforcing the directive or entering, sealing, shutting down, restricting, inspecting, supervising or otherwise disrupting its refinery and related facilities within the Lekki Free Zone.
But the case goes beyond the immediate threat of a shutdown.
At the centre of the dispute is whether NMDPRA has regulatory and oversight authority over operations located within a free zone.
Justice Aluko said the court had seen a March 2, 2026 letter from the Attorney-General of the Federation which, according to the judge, stated that NMDPRA was not entitled to exercise regulatory or oversight functions over operations within free zones. The judge said the conflicting positions raised serious issues that require determination by the court.
The ruling does not constitute a final judgment on the underlying dispute. It is an interim injunction intended to preserve the situation while the substantive application is considered.
The court has scheduled the next hearing for September 9, 2026. Dangote has also undertaken to compensate NMDPRA in damages if it is eventually determined that the interim order should not have been granted.
Why the case matters
The dispute could have implications well beyond Dangote Refinery.
The facility is Africa’s largest oil refinery and a major part of Nigeria’s strategy to reduce dependence on imported petroleum products. Any prolonged disruption to its operations could therefore have consequences for fuel supply, prices and energy security.
But equally important is the question of how far Nigeria’s petroleum regulator can exercise its powers over companies operating within designated free zones.
For now, the court has drawn a temporary line: NMDPRA cannot enforce the disputed August 24 directive against Dangote Refinery while the legal battle over its regulatory authority continues.
The September 9 hearing could therefore become the next major chapter in an increasingly consequential confrontation between Nigeria’s petroleum regulator and its biggest private refinery.
