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.

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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

Critical stakeholders have urged the Federal Government to intervene to address challenges confronting domestic refiners so as to reduce Nigeria’s dependence on imported petroleum products.

According to the Crude Oil Refinery Owners Association of Nigeria (CORAN) it has become urgent for the government at the highest level to convene a Presidential Refining Industry Roundtable (PRIR) involving regulators, crude producers, financiers, infrastructure investors and refinery operators to develop a national roadmap for the sector.

The CORAN, in a position paper, said domestic refiners were grappling with foreign exchange pressures, high borrowing costs, crude supply constraints, inadequate infrastructure and rising logistics costs.

The association said Nigeria’s experience contrasted sharply with that of the United States, where President Donald Trump recently met refinery and fuel-distribution executives despite the country’s high refinery utilisation, underscoring the importance of government engagement with strategic industries.

According to the CORAN, Nigeria, despite being one of Africa’s largest crude oil producers, still faced difficulties supplying local refineries with crude under commercially sustainable arrangements.

It called for the full institutionalisation of the Federal Government’s Naira-for-Crude initiative, arguing that refineries selling most of their products in naira should not face unnecessary foreign exchange pressure in sourcing crude.

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The association also demanded a domestic crude-pricing framework that considers transportation, crude quality, point of delivery and other transaction costs rather than relying solely on international benchmarks.

“Physical allocation alone is not enough. Crude must be delivered at commercially sustainable prices and under arrangements that properly consider transportation, quality, evacuation, financing and proximity to producing assets,” CORAN said.

The refinery owners also expressed concern over the continued influx of imported petroleum products, warning that excessive imports could undermine investments in local refining, increase foreign exchange demand and expose the country to external supply disruptions.

While acknowledging that imports might be required to cover temporary supply gaps, the CORAN said they should not remain the dominant structure of Nigeria’s downstream petroleum market.

The association identified access to long-term financing as another major obstacle and called for a Refinery Development and Expansion Financing Framework involving development finance institutions, commercial banks, pension funds, infrastructure funds and private investors.

It said the proposed framework should provide long-term funding, credit guarantees, refinancing windows and construction-risk support for new and existing refineries.

The CORAN also called for increased investment in pipelines, storage terminals, depots, rail-linked transport and marine evacuation facilities, noting that reliance on road transportation significantly increased costs and safety risks.

The association urged the Federal Government to treat refineries as strategic industrial infrastructure capable of supporting employment, engineering, fabrication, petrochemicals and other sectors.

“Nigeria cannot continue exporting crude, exporting jobs and importing petroleum products at significant economic cost,” the association said.

The CORAN said the proposed presidential roundtable should produce clear timelines for strengthening the Domestic Crude Supply Obligation, institutionalising Naira-for-Crude, developing a domestic crude-pricing framework, reducing unnecessary product imports and expanding refinery financing and infrastructure.

It said Nigeria must move from an import-dependent petroleum economy towards a production-driven model, with domestic refineries playing a central role in meeting local demand and positioning the country as a refining hub for Africa.

President of the Republic of Senegal, H.E. Bassirou Diomaye Faye, has commended Sahara Group for its longstanding commitment to Senegal and the Société Africaine de Raffinage (SAR), describing the company as a trusted partner in the country’s energy sector.

The President made the remarks while receiving a Sahara delegation led by Wale Ajibade, Executive Director, Sahara Group, alongside Mamadou Abib Diop, Managing Director of SAR, at the Presidential Palace in Dakar.

President Faye acknowledged Sahara’s passion for Africa, its Pan-African outlook, and its consistent support for Senegal’s energy aspirations over the years through Sahara’s longstanding relationship with SAR.

“We appreciate Sahara’s dynamism, flexibility and constructive partnership with SAR, particularly its support in helping secure the country’s energy requirements amid challenging global market conditions,” President Faye added.

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Responding, Ajibade reaffirmed Sahara’s commitment to supporting Senegal’s energy security and economic development.

“Senegal has been an important partner for Sahara over the years, and we remain committed to deploying our expertise, infrastructure, financing capabilities and operational experience in ways that support the country’s energy ambitions. We are encouraged by the progress being made and look forward to deepening our partnership with SAR and other stakeholders across the energy value chain,” he said.

Ajibade noted that Sahara’s engagement in Senegal extends beyond its shareholding in SAR and reflects the company’s broader commitment to advancing energy access, industrial development and sustainable economic growth across Africa.

SAR Managing Director Mamadou Abib Diop, described Sahara as a reliable, long-term partner that has made significant investments in Senegal and continues to play an important role in supporting the country’s energy sector.

“Sahara Energy has invested significantly in Senegal over the years and remains a major and reliable partner. We are focused on strengthening our collaboration with Sahara to provide Senegal with greater flexibility in addressing the needs of the energy sector.”

Diop highlighted Sahara’s support for SAR’s crude oil supply requirements and noted that the company has consistently demonstrated its willingness to work alongside Senegalese stakeholders to help navigate prevailing market challenges.

The meeting further reinforced the strong partnership between Senegal, SAR and Sahara Group, as all parties continue to pursue practical solutions that enhance energy security, strengthen supply reliability and support the country’s long-term economic development.

Photo Caption – From Left, Executive Director, Sahara Group, Wale Ajibade and President of the Republic of Senegal, H.E. Bassirou Diomaye Faye at the Presidential Palace in Dakar, Senegal