Federal High Court Stops NMDPRA From Shutting Down Dangote Refinery

Federal High Court Stops NMDPRA From Shutting Down Dangote Refinery

  • A Federal High Court in Lagos issued an interim injunction protecting Dangote Petroleum Refinery from regulatory interference by the NMDPRA
  • The order followed an August 24, 2026 letter in which the NMDPRA directed the suspension of petroleum product loading and truck-out at the refinery
  • Justice Akintayo Aluko adjourned the case to September 9, 2026, for the hearing of the motion on notice

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

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 inside the Lekki Free Zone.

Justice Akintayo Aluko made the order on Monday while ruling on a motion ex parte marked FHC/L/CS/1174/26.

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.

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Court restrains NMDPRA from shutting down or interfering with Dangote Refinery operations in Lagos.
NMDPRA faces court setback as judge restrains agency from interfering with Dangote Refinery. Photo: Nurpas
Source: Getty Images

Why the Refinery Went to Court

The dispute began after the NMDPRA wrote to the refinery on August 24, 2026, directing the suspension of the loading and truck-out of petroleum products from the facility. In response, Dangote Petroleum Refinery sought court orders to block the agency from enforcing that directive, Punch reports

The refinery specifically 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, in moving the application, told the court it was supported by a 42-paragraph affidavit deposed to by Wale Aroge, a written address, and documentary exhibits marked A1 to A6.

What Justice Aluko Decided

After reviewing the affidavit, exhibits, and submissions from counsel, Justice Aluko identified the central question as whether the NMDPRA held regulatory authority over operations within free zones at all.

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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.

Dangote Refinery takes NMDPRA to court over August 24 directive suspending petroleum product loading.
Dangote Refinery secures court order preventing NMDPRA from disrupting loading and truck-out operations. Photo: Bloomberg
Source: UGC

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 that required the court's 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, DailyTrust reports.

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."

The judge directed that the order and notice of hearing be formally served on the NMDPRA and adjourned the case to September 9, 2026, for the hearing of the motion on notice.

Trump’s decision pushes crude oil prices higher

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Earlier, Legit.ng reported that 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, as traders responded to renewed concerns over potential supply disruptions.

Source: Legit.ng

Authors:
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Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.