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Justice Akintayo Aluko has restrained NMDPRA from enforcing its August 24 directive suspending the loading and truck-out of petroleum products from Dangote Refinery, preserving the refinery’s operations pending further hearing.
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Beyond stopping the loading ban, the court barred NMDPRA, its officers and agents from entering, sealing, shutting down, restricting access to or otherwise interfering with the refinery
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The court said a key issue for determination is whether NMDPRA has the legal power to exercise regulatory and oversight functions over petroleum operations within the Lekki Free Zone.
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NNPC Limited has opposed Dangote’s position, arguing that the Petroleum Industry Act does not impose a blanket ban on petroleum product imports and that NMDPRA has statutory authority to issue import licences where necessary to protect national fuel supply and market stability.
September 01, (THEWILL) — A Federal High Court sitting in Lagos has restrained the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) from enforcing its directive suspending the loading and truck-out of petroleum products from the Dangote Petroleum Refinery in the Lekki Free Zone.
Justice Akintayo Aluko, in an interim ruling, also barred the regulator, its officers, agents and representatives from sealing, shutting down, restricting access to, obstructing, suspending, disrupting, inspecting, supervising, sanctioning or otherwise interfering with the refinery’s operations pending the determination of the substantive application before the court.
The order followed an ex-parte application filed by Dangote Petroleum Refinery and Petrochemicals FZE in suit No. FHC/L/CS/1174/2026.
THEWILL reports that the court order followed an August 24, 2026 directive by NMDPRA purporting to suspend the loading and truck-out of petroleum products from the refinery.
Acting through Its legal team led by Senior Advocates of Nigeria, Olawale Akoni and Abimbola Akeredolu, Dangote challenged the directive, arguing that NMDPRA lacked the authority to exercise the regulatory powers contemplated by the directive over its operations within the free zone.
Court Questions NMDPRA’s Authority
In granting the interim injunction, Justice Aluko said he had considered the refinery’s 42-paragraph affidavit, Exhibits A1 to A6, the submissions of counsel and NMDPRA’s August 24 letter.
The judge also drew attention to a March 2, 2026 letter from the Attorney-General of the Federation, which, according to him, “clearly stated” that NMDPRA was not entitled to exercise regulatory powers or oversight functions over operations within free zones.
Justice Aluko said the court was therefore required to determine whether NMDPRA should be permitted to exercise the disputed authority while the substantive issues remained before the court.
“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 said.
The judge said the materials placed before the court disclosed serious issues requiring determination and demonstrated the need for urgent judicial intervention.
He explained that courts have an inherent power and duty to preserve the res, or subject matter of litigation, and prevent it from being destroyed or altered before the substantive case is determined.
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Dangote Gets Protection From Regulatory Interference
Dangote had specifically asked the court to restrain NMDPRA from enforcing or giving effect to its August 24 directive pending the hearing of its motion on notice.
It also sought an order preventing the regulator from entering upon, sealing, shutting down, restricting access to, obstructing, suspending, disrupting, inspecting, supervising, sanctioning or otherwise interfering with the refinery, petrochemical, terminal, storage, blending, loading and truck-out facilities at the Lekki Free Zone.
Justice Aluko granted the reliefs sought, holding that the conditions for an interim injunction had been satisfied.
The court also directed Dangote to file a formal undertaking to indemnify NMDPRA in damages should it subsequently be found that the interim order ought not to have been granted.
The order and notice of the court are to be served on NMDPRA.
The case has been adjourned until September 9, 2026, for hearing of the motion on notice.
NNPC Opposes Dangote’s Position
Meanwhile, NNPC Limited has urged the court to dismiss the suit, arguing that the Petroleum Industry Act (PIA) and the Federal Government’s Backward Integration Policy do not impose a blanket prohibition on petroleum product imports.
The state-owned oil company maintained that imports remain permissible where necessary to guarantee national fuel supply and prevent shortages.
NNPC also argued that NMDPRA acted within its statutory powers in issuing the disputed licences, maintaining that the law permits the licensing of companies with local refining capacity or an established track record in petroleum trading. It further contended that the PIA does not prohibit fuel imports except where there is a verified domestic supply surplus.
According to NNPC, imports remain a legitimate mechanism for maintaining product availability and stabilising prices.
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