Just days following the initial public offering (IPO) of the Dangote Petroleum Refinery, a legal battle has surfaced between the company and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) before the Federal High Court in Lagos. The suit centers on the regulatory body’s directives regarding propane quality, truck distribution operations, and alleged misuse of regulatory authority.
The conflict escalated after the regulatory agency issued an order stopping propane loading and truck distribution at the facility. In response, the refinery brought the matter to court, claiming the regulator overstepped its powers. On August 31, the court granted an interim injunction preventing the regulator, its representatives, and its officers from shutting down, sealing, inspecting, or hindering the refinery’s operations until the main lawsuit is decided.
At the recent court session, the regulator’s lawyer, Matthew Burkaa, requested the discharge of the interim order. He argued that the court was misled, key details were concealed, and Justice Akintayo Aluko lacked the authority to issue the initial order because the refinery had not submitted a required motion on notice during the ex-parte hearing.
The regulatory agency defended its decision to suspend operations, citing investigations into the alleged diversion of propane-filled trucks to unregistered buyers and improper blending at liquid petroleum gas (LPG) facilities. Tests run on LPG samples from three plants (Selai, Tewa, and Ameego Pago) allegedly revealed propane concentrations exceeding 50 percent, surpassing the standard requirement of 20 percent propane to 80 percent butane.
The regulator stated that representatives from those facilities named Sublime Oil and Gas Limited, a buyer from the refinery, as their supplier. The agency alleged that its representatives were subsequently blocked from reviewing loading records and inspecting operations at the refinery on August 24, prompting a non-compliance notice.
According to the regulator, tracking manifests showed missing inventory. It claimed Sublime Oil and Gas picked up 25 trucks of propane on August 20 and 22 intended for Navgas/Agasco, but only six arrived, leaving 19 unaccounted for. Furthermore, records from Delta State indicated that another buyer loaded 52 trucks between May and August 2026 for Navgas, yet none were delivered.
The agency emphasized that using high-pressure propane (measured at 13 bar compared to the standard 7-bar limit for LPG) in unequipped refilling facilities creates safety hazards and risks explosions.
Rebutting the agency’s claims, Anthony Chiejina, spokesman for the Dangote Group, stated that regulatory officials had already tested and cleared the product before dispatch.
Chiejina said, “We have NMDPRA staff there in the refinery. They inspected and certified the product as okay. Then, a company came to pick up the product with its truck, not Dangote’s truck. You later arrested the truck somewhere else and said it was conveying adulterated or blended propane. How does that concern us after you tested and certified our product okay?”
He added, “You went to the plant to seal it and later left the plant. For me, that is an absolute abuse of power by NMDPRA. And that is just a diabolical sense of control. It makes no sense. That’s what led to the court action.”
Chiejina further stated, “They have a hidden transcript. Assuming you entered our refinery and discovered that what we have there is blended, that’s a different thing. You have earlier certified the product.”
He added, “Let them go and check their records. And the owner of the truck has left with his truck. Where he goes with his truck – is it my business? He does what he likes with his products.”
During the court session, Senior Advocate of Nigeria Wale Akoni, representing the refinery, acknowledged the counter-affidavit submitted by the regulatory body but requested additional time to respond due to receiving the document in court that day. Burkaa accepted the request for time while stressing the time-sensitive nature of the safety concerns.
Justice Aluko explained that he could not set a new court date because his assignment as a vacation judge ends on Friday, meaning the administrative judge must reassign the file.
“My jurisdiction ends on Friday as far as the vacation matter is concerned. Therefore, the Admin Judge will, in his wisdom, decide where the case file should go,” the judge said.
“So, it’s not even proper for me to give you a date now. The case file should be sent back to the court registry for the admin judge to, in his wisdom, set a date.”
The judge extended the existing injunction keeping the regulatory agency from stopping refinery activities.
Justice Aluko held, “I find it proper to extend the interim order made on the 31st day of August 2026. It shall continue to subsist and shall be in force till the hearing and determination of the motion on notice, or until the court gives further directive.”
“The case file is hereby remitted to the registry for assignment to the regular court by the Honourable Administrative Judge,” the judge held.
The existing court order remains active, preventing regulatory disruption while the substantive case awaits reassignment and final resolution.
