Business
Dangote Refinery: NMDPRA Mulls Legal Battle Over Access Restriction
The Nigerian Midstream and Downstream Petroleum Regulatory Authority is weighing its next move to prevent it from losing regulatory authority over midstream and downstream companies located in free trade zones.
Last week, a Federal High Court in Lagos issued an interim injunction restraining the NMDPRA from shutting down or interfering with the operations of the Dangote Petroleum Refinery in the Lekki Free Zone, Lagos.
Justice Akintayo Aluko made the order while ruling on a motion ex parte marked FHC/L/CS/1174/26, filed and argued by counsel to Dangote Petroleum Refinery Nigeria Limited, led by Olawale Akoni and Abimbola Akeredolu.
The refinery had approached the court following a letter dated August 24, 2026, in which the NMDPRA allegedly directed the suspension of the loading and truck-out of petroleum products from the refinery.
In his ruling, Justice Aluko said he had carefully considered the application, the affidavit evidence, exhibits and submissions of counsel, including the NMDPRA’s letter. The judge noted that the refinery’s case was that the NMDPRA lacked regulatory or oversight powers over operations within free zones, including the Dangote Industrial Free Zone.
Justice Aluko also referred to a letter dated March 2, 2026, issued by the Attorney-General of the Federation, which, according to the judge, stated that the NMDPRA was not entitled to exercise regulatory powers or oversight functions over operations within free zones.
READ ALSO: DPRP Set for Landmark IPO to Raise ₦2.15 Trillion
The judge further held that the refinery had satisfied the conditions required for the grant of an interim injunction. “Accordingly, I find merit in the application, and the same is hereby granted in terms of the reliefs sought,” Aluko ruled.
When contacted, the spokesman of the NMDPRA, George Ene-Ita, declined further comments on the matter, saying, “I can’t comment on a case before the court.”
While not denying the NMDPRA’s letter to shut the Dangote refinery, Ene-Ita refused to give details on why the regulator ordered the refinery to stop loading.
However, other senior officials within the NMDPRA disclosed that the regulator is weighing the next move as far as the case and the ruling are concerned. It was gathered that the agency’s legal team and its management “will decide the next line of action”.
In May, the NMDPRA declared that petroleum companies operating in free zones, export processing zones and other designated areas in Nigeria remain fully subject to the provisions of the Petroleum Industry Act 2021 and regulations issued under the law. The regulator stated this in an industry circular.
Free zones are designated areas created by the government to encourage investment and industrial activities through tax incentives, customs waivers and simplified business regulations. They include export processing zones, industrial parks and special economic zones where companies often enjoy exemptions from certain taxes and administrative procedures.
However, the NMDPRA stressed that such incentives do not exempt oil and gas operators from petroleum sector regulations under the PIA. “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,” it stated.
In the circular addressed to managing directors and chief executives of oil and gas midstream companies, downstream firms, petrochemical and fertiliser companies, as well as import and export terminals, the authority reaffirmed its statutory powers over all midstream and downstream petroleum activities nationwide.
It explained that the regulatory mandate of the agency extends to all midstream and downstream petroleum activities and applies throughout Nigeria, including the continental shelf, territorial waters, exclusive economic zone, free zones, export processing zones, industrial zones and any other designated areas.
The agency said it was the statutory regulator responsible for the technical, commercial, operational and licensing regulation of all midstream and downstream petroleum operations in Nigeria.
It informed operators that all midstream and downstream petroleum operations, including refining, processing, storage, bulk transportation, pipelines, gas transportation networks, terminals, jetties, wholesale supply, importation, exportation, distribution and the sale of natural gas and petroleum liquids, are subject to its regulatory oversight.
With the current ruling, the NMDPRA is expected to defend its authority over free zones while the court decides whether or not it has such powers.
In its application, the Dangote refinery has asked the court to restrain the regulator, its officers, agents, representatives, privies or any person acting under its authority from enforcing or implementing the directive to shut the facility pending the hearing and determination of its motion on notice.
The company also sought an interim injunction restraining 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.
After granting the injunction, the court subsequently adjourned the case until September 9, 2026, for hearing of the motion on notice.
Courtesy – The Punch
Under-dispensing of petroleum products at retail outlets across Nigeria would no longer be tolerated and identified violations could lead to the revocation of the culprits’ licences.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) handed down the caution in an industry circular, in which it directed all retail outlet operators to immediately calibrate and verify their dispensing pumps and totalisers to ensure accurate measurement to be certain that consumers receive the full quantity of products for which they pay.
READ ALSO: Kenyan Court Halts Dangote Refinery Work
The NMDPRA said it had observed incidents of under-dispensing at retail outlets nationwide, describing the practice as a serious breach of consumer trust.
It stated that it had intensified inspections and enforcement activities across the country and would take action against outlets found to be under-dispensing, operating with improperly calibrated equipment or otherwise compromising dispensing accuracy.
“Persistent or serious violations will be subject to appropriate sanctions, up to and including revocation of the outlet’s licence, in line with NMDPRA’s regulations,” the authority stated.
The regulator urged operators to take immediate corrective measures where discrepancies are identified, stressing the need to maintain the integrity and accuracy of petroleum product transactions.
The NMDPRA also directed the Major Energy Marketers Association of Nigeria (MEMAN), the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) to promptly communicate the directive to their members and support compliance across the industry.
The House of Representatives has extended the implementation period of the capital component of Nigeria’s 2025 budget from September 30 to December 31, 2026, citing economic difficulties and challenges affecting the execution of capital projects.
The decision was taken on Tuesday during plenary after Majority Leader Julius Ihonvbere moved a motion seeking an amendment to the Appropriation (Repeal and Enactment) Act, 2025.
Ihonvbere told lawmakers that several factors affecting the Nigerian economy had made it difficult to conclude the implementation of the capital component before the existing September 30 deadline.
ALSO READ: Senate Approves Bill to Create Agency for Recovered Assets
He said the extension was necessary to ensure that incomplete implementation would not be attributed simply to the expiration of the deadline previously approved by the National Assembly.
The House subsequently fast-tracked the bill through first, second and third readings before approving the extension.
The Senate also passed the measure, allowing Ministries, Departments and Agencies (MDAs) additional time to complete capital projects for which funds had already been appropriated and released.
Why the projects remain unfinished
Senate Leader Opeyemi Bamidele gave further details on the factors affecting implementation, pointing to procurement, contract execution, mobilisation, certification of completed works and payment processes.
According to Bamidele, these stages can affect the ability of MDAs to complete projects within the existing budget implementation timeframe.
He said the extension was intended to protect ongoing public investments, facilitate the completion of critical projects and prevent the waste of public resources already appropriated and released.
The latest decision therefore gives government agencies another three months to complete eligible projects and utilise funds already provided for the 2025 capital programme.
Fourth extension of 2025 capital budget
Tuesday’s decision marks the fourth extension of the implementation deadline for the 2025 capital budget.
The National Assembly first moved the deadline from December 31, 2025, to March 31, 2026.
It subsequently extended the deadline to June 30 and later to September 30.
The latest extension now moves the deadline to December 31, 2026.
The repeated extensions have kept portions of previous capital allocations in the implementation cycle while the government works through outstanding projects and obligations.
Earlier in June, lawmakers had cited procurement timelines, project implementation challenges and administrative processes as reasons for extending the capital budget deadline to September.
Previous budget pressures
The issue has also been linked to the backlog of capital projects from previous budget years.
A recent analysis reported that about ₦16.8 trillion in capital expenditure from the 2024 and 2025 budgets had been rolled into the 2026 fiscal year, with funding constraints and delays in releases contributing to the backlog.
The report said the 2026 capital budget was partly structured to address outstanding obligations from previous years.
President Bola Tinubu had also acknowledged in his 2026 budget speech that the implementation of the 2025 budget faced competing execution demands and the transition between budget years.
He disclosed that only ₦3.10 trillion, representing about 17.7 per cent of the 2025 capital budget, had been released as of the third quarter of 2025, while priority was given to completing 2024 capital projects.
The new December 31 deadline is therefore expected to provide additional time for MDAs to complete projects already at various stages of execution.
The House adjourned plenary until October 13, 2026, after considering the budget extension.
The Malindi Environment and Land Court in Kenya has directed that the construction of the proposed Dangote refinery in Lamu County be placed on hold until further hearing.
The development came after some farmers and local inhabitants of Chandavai, an area in Lamu County, opposed the move, citing cases of “forceful eviction” and the destruction of their properties.
According to a Bloomberg report on Monday, Judge Jane Onyango ordered that “the status quo prevailing” be maintained.
The report noted that the court will provide further directions on the case on October 14, according to the order, which was issued on September 25 but made public on Monday.
A lawyer representing the petitioners, George Wakahiu, told Bloomberg that the ruling means no construction of the project should begin until the court meets on October 14.
The Dangote refinery project entails “forceful eviction of the plaintiffs from their lands, damage and destruction of their properties and yet there is no resettlement plan for them,” according to the petitioners. Dangote and the Kenyan authorities have yet to comply with the nation’s environmental code that requires “a mandatory environmental impact assessment be done before the implementation of any major project,” they said.
READ ALSO: Adeleke Hails Osun’s NECO Performance
The refinery also fails to comply with Kenya’s constitution, “which requires that the necessary public participation” be conducted, according to the court filings, the report stated.
However, in a report by Reuters on Tuesday, the business conglomerate of Africa’s richest man, Dangote Group, said in a statement that the court was yet to stop the refinery’s groundbreaking ceremony.
It noted that activities at the proposed refinery site would be affected pending the October 14 court hearing.
“The court has not halted the groundbreaking ceremony of the refinery at this stage. However, activities at the site may be affected by the ruling, as both parties are required not to carry out activities until the case is heard on 14th October,” the statement read.
The PUNCH reports that Kenyan President William Ruto said his government was fast-tracking administrative processes for the proposed Dangote refinery in Lamu. This is as Africa’s richest man, Aliko Dangote, said the planned facility would be bigger than the existing Nigerian plant.
Ruto spoke on Friday during a tour of the Dangote Petroleum Refinery in Lekki, Lagos, ahead of the September 30 groundbreaking ceremony for the proposed 700,000-barrel-per-day refinery in Lamu, Kenya.
The Kenyan President said his government had already secured the land for the project and is working on other requirements to eliminate bureaucratic bottlenecks and ensure that construction and subsequent operations are not delayed.
He described the proposed refinery as a regional project that would expand industrial activities in East Africa, create employment opportunities and improve the technical skills of the region’s workforce.
Courtesy – The PUNCH
Tinubu Signs 2025 Budget Amendment Into Law
FG Reveals Six Locations for Proposed 24-Hour Power Supply Zones
2027 Election: Wike Sets Resignation Date If Tinubu Loses Rivers, FCT
NNPC Flaunts $800m Ima FID, as Affirmation of Upstream Viability
NMDPRA Poised to Curb Under-dispensing at Petrol Stations
2027: ‘They’ve Shown Peter Obi More Than One Kobo, Yet He Hasn’t Backed Down’ — Afegbua
Trump’s Family Unveils New Cryptocurrency Platform
Senate Denies Receiving Petitions Against Tinubu’s Ambassadorial Nominees
Dangote Cement Lights Up Benue Host Communities With CSR Initiatives
Reps Recommend 3-year Jail Term For Aviation minister
Tems Sets New Record On Billboard Hot 100 Chart
