morgANABLE business/energy& industry
The authority further alleged that its officials were denied access to inspect propane loading operations and records at the Dangote facility on August 24, raising concerns about transparency and compliance.
KaNo—
A legal battle has erupted between the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Dangote Petroleum Refinery over the suspension of propane loading and distribution operations, with both parties trading accusations over regulatory overreach and safety violations.
The dispute, which centres on the quality and handling of propane supplies, came before the Federal High Court in Lagos on Wednesday.
At the hearing, the NMDPRA urged the court to vacate an earlier interim order that restrained it from enforcing its directive to halt propane truck-out activities at the refinery. Dangote Refinery, however, insisted that the regulator acted beyond its powers and sought judicial protection against what it described as undue interference.
The court had, on August 31, granted an interim injunction restraining the NMDPRA, its officers and agents from entering, sealing, or disrupting operations at the refinery pending the hearing of the substantive suit.
The order effectively halted the regulator’s attempt to suspend propane loading activities at the facility.
Challenging the order, counsel to the NMDPRA, Matthew Burkaa, argued that the injunction was obtained through misrepresentation and concealment of critical facts.
He further questioned the jurisdiction of the presiding judge, Justice Akintayo Aluko, contending that the refinery failed to file a motion on notice alongside its ex parte application, a procedural requirement for such reliefs.
Regulator Says Directive Based On Safety Concerns
The regulator maintained that its directive to suspend propane loading and truck-out operations was based on serious safety concerns uncovered during an ongoing investigation.
According to the NMDPRA, laboratory analyses of liquefied petroleum gas samples from three plants Selai, Tewa and Ameego Pago,revealed propane concentrations exceeding 50 per cent, far above the industry standard.
It warned that deviations from this ratio could pose significant risks to consumers and operators within the downstream gas sector.
Following the discovery, the regulator said it invited representatives of the affected plants for discussions, during which they identified Sublime Oil and Gas Limited, an off-taker from Dangote Refinery, as their source of supply.
This, according to the NMDPRA, triggered a broader reconciliation exercise involving propane producers and LPG blending plants.
The authority further alleged that its officials were denied access to inspect propane loading operations and records at the Dangote facility on August 24, raising concerns about transparency and compliance.
It subsequently issued a notice of potential non-compliance and ordered the suspension of propane loading pending the outcome of its investigation and the implementation of additional safeguards.
In its court filings, the NMDPRA also pointed to discrepancies in the refinery’s truck-out records.
It alleged that Sublime Oil and Gas lifted 25 trucks of propane on August 20 and 22 for delivery to Navgas/Agasco, but the recipient reportedly confirmed receiving only six of the consignments.
The whereabouts of the remaining 19 trucks, the regulator said, remain unaccounted for.
Similarly, it claimed that another off-taker loaded 52 trucks between May and August 2026 for delivery to the same company, yet none of the consignments were reportedly received.
The regulator argued that such inconsistencies suggest possible diversion of propane to unauthorised and unlicensed operators.
According to the NMDPRA, the alleged diversion of high-pressure propane to facilities not designed to handle it could have grave safety implications.
It noted that propane produced at the refinery has a vapour pressure of about 13 bar, significantly higher than the seven-bar maximum recommended for standard LPG mixtures.
NMDPRA Warns Against Use Of High-Pressure Propane
The regulator warned that the use of such high-pressure propane in conventional LPG plants could increase the risk of explosions, posing a threat to lives and property.
Dangote Refinery, however, strongly refuted the allegations, insisting that its operations comply with regulatory standards.
The company’s spokesman, Anthony Chiejina, said NMDPRA officials were present at the refinery and had inspected and certified the propane before it was released to buyers.
He questioned the regulator’s attempt to link the refinery to alleged irregularities occurring outside its facility.
“We have NMDPRA staff at the refinery who inspect and certify the products before they leave,” he said. “If a buyer takes delivery and later alters or diverts the product, how does that become our responsibility?”
He further accused the regulator of acting arbitrarily, describing its attempt to seal parts of the refinery as an abuse of power.
According to him, the actions of the NMDPRA disrupted operations and prompted the company to seek legal redress.
While the NMDPRA did not oppose the request, it stressed the urgency of resolving the matter, citing the potential risks to public safety if the alleged violations were left unchecked.
Judge Decline To Fix A New Hearing Date
Justice Aluko, however, declined to fix a new hearing date, noting that he was sitting as a vacation judge and that the court’s annual vacation would end on Friday.
“My jurisdiction as a vacation judge ends on Friday,” he said. “The administrative judge will determine the next steps and assign the matter accordingly.”
The judge subsequently extended the interim order restraining the NMDPRA from interfering with the refinery’s operations until the substantive motion is heard and determined or until further directives are issued by the court.
The case underscores growing tensions between regulators and operators in Nigeria’s petroleum sector, particularly as the country seeks to strengthen oversight while expanding domestic refining capacity.
