By Opeyemi Adelakun
The legal battle between the Dangote Petroleum Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, over the regulator’s suspension of propane loading and truck-out operations intensified on Wednesday as both sides presented sharply different positions before the Federal High Court in Lagos.
NMDPRA asked the court to discharge an interim order restraining it from enforcing the suspension, arguing that the order had been obtained through alleged misrepresentation and suppression of material facts.
The regulator also challenged the jurisdiction of Justice Akintayo Aluko to issue the order, contending that the refinery had not filed the required motion on notice when its ex-parte application was heard.
The dispute followed NMDPRA’s directive suspending propane loading and truck-out operations at the refinery.
The agency said the action followed investigations into alleged diversion of propane-laden trucks to unknown and unlicensed customers and suspected illegal blending of propane at some LPG plants.
NMDPRA said laboratory tests on LPG samples obtained from three plants — Selai, Tewa and Ameego Pago — allegedly showed propane content above 50 per cent.
According to the regulator, industry standards require propane to account for no more than 20 per cent of an LPG blend, with butane making up about 80 per cent.
The agency said representatives of the three plants were invited over the findings and identified Sublime Oil and Gas Limited, an off-taker from Dangote Refinery, as their source of propane.
This, NMDPRA said, triggered a broader reconciliation and material-balance exercise involving propane-producing facilities and LPG-blending plants.
The regulator further alleged that its officials were denied access when they attempted to inspect propane-loading operations and records at the Dangote refinery on August 24.
It subsequently issued a notice of potential non-compliance and directed the refinery to suspend propane loading and truck-out operations pending the conclusion of its investigation and the introduction of additional safety measures.
NMDPRA also alleged that an examination of the refinery’s truck-out manifests uncovered significant discrepancies.
According to the regulator, Sublime Oil and Gas lifted 25 trucks of propane on August 20 and 22 for delivery to Navgas/Agasco, but Navgas reportedly confirmed receiving only six.
The agency said the remaining 19 trucks could not be accounted for.
It further alleged that records from Delta State showed another off-taker loaded 52 trucks between May and August 2026 for delivery to Navgas, but Navgas reportedly confirmed that none of the consignments arrived.
NMDPRA argued that the alleged diversion of propane to unauthorised and unlicensed customers raised serious public health and safety concerns, particularly because the product was allegedly being used for LPG blending outside approved specifications.
The regulator further claimed that propane produced by Dangote and other gas-processing facilities had a vapour pressure of about 13 bar, compared with the maximum seven-bar pressure required for the standard propane-butane LPG mixture.
It argued that such higher-pressure propane could create an explosion risk at LPG refilling plants not designed to handle it.
Dangote Group spokesman, Anthony Chiejina, rejected NMDPRA’s position and maintained that the regulator’s officials had inspected and certified the propane before it left the refinery.
“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 said.
Chiejina also accused the regulator of exceeding its powers.
“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,” he said.
He challenged NMDPRA to produce its records to support its claims.
“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,” Chiejina said.
He also questioned the refinery’s responsibility for products after they had been purchased and transported by independent off-takers.
“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,” he said.
Court Extends Interim Order
At Wednesday’s proceedings, counsel for Dangote Refinery, Wale Akoni, SAN, drew the court’s attention to NMDPRA’s counter-affidavit filed in response to the refinery’s motion on notice.
Akoni requested a short adjournment to enable him to respond, explaining that he had only received the counter-affidavit in court on Wednesday.
NMDPRA’s counsel, Matthew Burkaa, did not oppose the request but stressed the urgency of the matter because of the safety concerns raised by the regulator.
Justice Aluko, however, said he could not fix a fresh hearing date because he was sitting as a vacation judge and the court’s annual vacation would end on Friday.
“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.
He added, “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 subsequently extended the interim order restraining NMDPRA from interfering with the refinery’s operations.
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.”
He directed that the case file be returned to the registry for assignment to the regular court by the administrative judge.
“The case file is hereby remitted to the registry for assignment to the regular court by the Honourable Administrative Judge,” the judge held.
The interim order therefore remains in force while the substantive dispute over NMDPRA’s regulatory action, the alleged diversion of propane, product quality and safety concerns awaits determination by the court.
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