The Nigerian Midstream and Downstream Petroleum Regulatory Authority is considering its next course of action, in order to avoid losing regulatory control over midstream and downstream businesses situated in free trade zones.
An interim injunction prohibiting the NMDPRA from closing or interfering with the operations of the Dangote Petroleum Refinery in the Lekki Free Zone, Lagos, was ordered by a Federal High Court in Lagos last week.
Olawale Akoni and Abimbola Akeredolu, the attorneys for Dangote Petroleum Refinery Nigeria Limited, submitted and defended a motion ex parte designated FHC/L/CS/1174/26. Justice Akintayo Aluko issued the verdict.
In response to a letter dated August 24, 2026, in which the NMDPRA purportedly ordered the suspension of the loading and truck-out of petroleum products from the refinery, the refinery filed an appeal with the court.
Justice Aluko stated in his decision that he had carefully reviewed the application, the NMDPRA’s letter, the affidavit evidence, the exhibits, and the counsel’s remarks. The refinery argued that the NMDPRA lacked regulatory or monitoring authority over activities within free zones, such as the Dangote Industrial Free Zone, the judgment said.
Additionally, Justice Aluko cited a letter from the Attorney-General of the Federation dated March 2, 2026, in which the judge said that the NMDPRA has no right to exert supervisory or regulatory authority over activities within free zones.
The refinery had met the requirements for the issuance of an interim injunction, the judge further ruled. Aluko declared, “I find merit in the application, and the same is hereby granted in terms of the reliefs sought.”
George Ene-Ita, the NMDPRA spokesperson, declined to comment more when asked, stating, “I can’t comment on a case before the court.”
Ene-Ita did not dispute the NMDPRA’s letter to close the Dangote refinery, but he declined to provide information about the reasons behind the regulator’s order.
Other senior NMDPRA officials, however, revealed that the agency is considering its next course of action in relation to the case and the decision. The agency’s management and legal staff reportedly “will decide the next line of action.”
The Petroleum Industry Act 2021 and its regulations continue to apply to petroleum businesses operating in Nigeria’s free zones, export processing zones, and other specified regions, according to a May declaration from the NMDPRA. In an industry circular, the regulator made this claim.
Free zones are areas set aside by the government to promote industrial activity and investment through simplified business regulations, tax breaks, and customs waivers. These include industrial parks, export processing zones, and special economic zones, where businesses frequently benefit from exemptions from specific taxes and administrative processes.
The NMDPRA emphasized, however, that these incentives do not shield oil and gas companies from PIA requirements pertaining to the petroleum sector. It said, “The operation of any midstream or downstream petroleum facility within a free zone, export processing zone, or similar area does not exempt such facility and its operations from compliance with the provisions of the PIA and regulations made thereunder.”
The authority reiterated its statutory powers over all midstream and downstream petroleum activities nationwide in the circular addressed to managing directors and chief executives of oil and gas midstream companies, downstream firms, petrochemical and fertilizer companies, and import and export terminals.
It clarified that all midstream and downstream petroleum operations are covered by the agency’s regulatory mandate, which is applicable throughout Nigeria, including the continental shelf, territorial waters, exclusive economic zone, free zones, export processing zones, industrial zones, and any other specified areas.
According to the agency, all midstream and downstream petroleum operations in Nigeria are subject to technical, commercial, operational, and licensing regulations within its statutory jurisdiction.
It advised operators that it regulates all midstream and downstream petroleum operations, including bulk transportation, pipelines, gas transportation networks, terminals, jetties, wholesale supply, importation, exportation, distribution, and the sale of petroleum liquids and natural gas.
The NMDPRA is anticipated to defend its control over free zones in light of the recent verdict while the court determines whether or not it has such authority.
The Dangote refinery has requested in its application that the court prohibit the regulator, its officers, agents, representatives, privies, or anyone acting under its authority from enforcing or carrying out the order to close the facility while its motion on notice is being heard and decided.
Additionally, the company requested an interim injunction prohibiting the NMDPRA and its agents from entering, sealing, shutting down, restricting access to, obstructing, suspending, disrupting, inspecting, supervising, sanctioning, or otherwise interfering with its refinery, petrochemical, terminal, storage, blending, loading, truck-out, and related facilities and operations within the Lekki Free Zone.
Following the issuance of the injunction, the court postponed the hearing of the motion on notice until September 9, 2026.
