Dangote Refinery, NMDPRA Face Off In Court Over Fuel Importation, Access Dispute

The Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Dangote Petroleum Refinery have clashed in court over allegations surrounding the quality and distribution of propane, with the dispute centring on the regulator’s directive to suspend propane loading and truck-out operations at the refinery.

The face-off came to a head at the Federal High Court in Lagos on Wednesday, where NMDPRA urged the court to discharge an interim order restraining it from enforcing the suspension, while Dangote accused the regulator of abusing its powers.

The court had on August 31 restrained NMDPRA, its officers, agents and representatives from entering, sealing, shutting down, restricting access to, obstructing, suspending, disrupting, inspecting, supervising or sanctioning the refinery’s operations pending the hearing and determination of the substantive application.

NMDPRA, through its counsel, Matthew Burkaa, told the court that the interim order had been obtained through alleged misrepresentation and suppression of material facts.

The regulator also challenged the jurisdiction of Justice Akintayo Aluko to grant the order, arguing that the refinery had not filed the required motion on notice when its ex-parte application was heard.

According to the regulator, its decision to suspend propane loading and truck-out operations followed findings of alleged diversion of propane-laden trucks to unknown and unlicensed customers and the alleged illegal blending of propane at some LPG plants.

NMDPRA said its investigation began after laboratory tests conducted on LPG samples from three plants – Selai, Tewa and Ameego Pago – allegedly showed propane content above 50 per cent.

It said industry requirements stipulated that propane should constitute no more than 20 per cent of an LPG blend, while butane should account for about 80 per cent.

The regulator said representatives of the three plants were invited to discuss the findings and identified Sublime Oil and Gas Limited, an off-taker from Dangote Refinery, as their source of propane.

NMDPRA said this prompted a wider reconciliation and material-balance exercise involving propane-producing facilities and LPG-blending plants. It further alleged that its officials were denied access when they attempted to inspect propane-loading operations and records at Dangote Refinery on August 24.

The regulator subsequently issued a notice of potential non-compliance and directed the refinery to suspend propane loading and truck-out pending the outcome of its investigation and the implementation of additional safety measures.

According to NMDPRA, an examination of the refinery’s truck-out manifests revealed significant discrepancies. It alleged that Sublime Oil and Gas lifted 25 trucks of propane on August 20 and 22 for delivery to Navgas/Agasco, but Navgas confirmed receiving only six.

The regulator therefore said the remaining 19 trucks were unaccounted for. NMDPRA also alleged that records from Delta State showed that another off-taker loaded 52 trucks between May and August 2026 for delivery to Navgas, but Navgas reportedly confirmed that none of the consignments were received.

It 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 standards.