By Annette Ikponmwonba | September 9, 2026
Keypoints
• NMDPRA is considering its next legal move after a Federal High Court restrained it from interfering with Dangote Refinery’s operations.
• The court said the refinery had satisfied the conditions for an interim injunction.
• Dangote Refinery argued that NMDPRA lacks regulatory authority Nigerian Midstream and Downstream Petroleum Regulatory Authority is weighing its next move following a Federal High Court order restraining it from shutting down or interfering with the operations of Dangote Petroleum Refinery in the over operations within free trade zones.
• An earlier Attorney-General of the Federation letter reportedly stated that NMDPRA could not exercise regulatory oversight over free zones.
• NMDPRA had previously maintained that petroleum companies operating in free zones remain subject to the Petroleum Industry Act.
Main Story
The Nigerian Midstream and Downstream Petroleum Regulatory Authority is weighing its next move following a Federal High Court order restraining it from shutting down or interfering with the operations of Dangote Petroleum Refinery in the Lekki Free Zone, Lagos, Justice Akintayo Aluko issued the interim injunction after hearing an application filed by Dangote Petroleum Refinery Nigeria Limited.
The refinery approached the court after NMDPRA allegedly directed it, in a letter dated August 24, 2026, to suspend the loading and truck-out of petroleum products from its facility, Dangote argued that NMDPRA lacked regulatory and oversight powers over operations within free zones, including the Dangote Industrial Free Zone.
In granting the interim injunction, Justice Aluko said he had considered the application, affidavit evidence, exhibits and submissions from both sides, The judge also referred to a March 2, 2026 letter from the Attorney-General of the Federation, which reportedly stated that NMDPRA was not entitled to exercise regulatory powers or oversight functions over operations within free zones.
The Issues
The dispute centres on whether petroleum facilities operating within free trade zones are subject to NMDPRA’s regulatory authority under the Petroleum Industry Act 2021, Dangote Refinery maintains that its location within the Dangote Industrial Free Zone limits NMDPRA’s regulatory jurisdiction.
NMDPRA, however, has previously taken the opposite position, arguing that petroleum companies operating in free zones, export processing zones and other designated areas remain subject to the Petroleum Industry Act and regulations issued under it, The disagreement could have implications beyond Dangote Refinery, particularly for other oil and gas companies operating within Nigeria’s free zones.
What’s Being Said
NMDPRA spokesman George Ene-Ita declined to comment further on the matter, saying he could not comment on a case before the court, Senior officials within the regulator indicated that the agency’s legal team and management would determine its next course of action, In May, NMDPRA issued an industry circular stating that petroleum companies operating in free zones, export processing zones and other designated areas remain fully subject to the Petroleum Industry Act 2021.
What’s Next
NMDPRA’s legal team and management are expected to determine whether to challenge the court’s interim order or pursue another legal option, The substantive legal dispute over regulatory authority within free zones could become more important as the case progresses, The outcome could also establish a significant precedent for the regulation of petroleum companies operating within Nigeria’s free trade zones.
Bottom Line
The dispute between Dangote Refinery and NMDPRA is fundamentally about who has regulatory authority over petroleum operations inside free zones. The court has temporarily restricted NMDPRA’s intervention, while the regulator is considering its next legal move.
