A Federal High Court in Lagos has restrained the Nigerian Midstream and Downstream Petroleum Regulatory Authority from shutting down or interfering with operations at Dangote Petroleum Refinery in the Lekki Free Zone.
According to Punch, Justice Akintayo Aluko granted the interim injunction on Monday. This came after considering an application filed by lawyers representing Dangote Petroleum Refinery Nigeria Limited.
Dangote challenges NMDPRA directive
The refinery approached the court following an August 24 letter. In this letter, the NMDPRA allegedly directed the suspension of loading and truck-out operations at the facility.
Dangote asked the court to stop the regulator and anyone acting on its behalf from implementing the directive. This should apply until its substantive application is heard.
The company also sought protection against the sealing, obstruction, suspension or disruption of its refinery, terminal, storage, blending and loading facilities.
During proceedings, the court considered Dangote’s argument. The company claimed that the NMDPRA does not have regulatory or oversight powers over operations located within free zones.
Justice Aluko said the dispute raised an important question. The question is whether the regulator should be allowed to exercise the contested authority before the substantive issues are determined.
Court moves to preserve refinery operations
The judge said the court had a responsibility to ensure that the subject of the litigation was preserved. This should be done while the case remained unresolved.
“Every court has the inherent power and duty to preserve the res,” Justice Aluko said.
He held that Dangote Refinery had satisfied the conditions for the grant of an interim injunction.
The company was also directed to provide a formal undertaking to pay damages. This should happen if the court later determines that the injunction ought not to have been granted.
“Accordingly, I find merit in the application,” the judge ruled.
NMDPRA barred pending next hearing
Justice Aluko directed that the order and relevant court documents be served on the regulatory authority.
The interim injunction means the NMDPRA cannot enforce the disputed directive by shutting or interfering with refinery operations. This applies pending further proceedings.
The case was adjourned until September 9 for hearing of the motion on notice.
The dispute comes amid heightened attention on Dangote Refinery’s role in Nigeria’s downstream petroleum sector. This includes fuel supply, pricing and the country’s continued dependence on imported petroleum products.
