DANGOTE Vs NMDPRA: Court Halts Refinery Showdown Over Propane

The battle between Dangote Petroleum Refinery and Nigeria’s downstream petroleum regulator has escalated into a major courtroom showdown, with allegations of unsafe propane handling, diverted trucks and regulatory overreach at the centre of the dispute.

The Federal High Court in Lagos on Wednesday extended an interim order shielding the Dangote Refinery from regulatory interference, temporarily blocking the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) from shutting down, restricting or disrupting the refinery’s operations.

The ruling came after NMDPRA asked the court to lift the earlier order, arguing that Dangote had obtained the injunction through alleged misrepresentation and suppression of material facts.

The regulator also questioned the court’s jurisdiction to issue the order.

But the court declined to discharge the injunction.

Justice Akintayo Aluko extended the order until the substantive application is heard and determined, or until further directives are issued.

The decision means the immediate confrontation over NMDPRA’s suspension of propane loading and truck-out operations remains unresolved.

WHY NMDPRA MOVED AGAINST DANGOTE

NMDPRA told the court that its investigation began after laboratory tests on LPG samples from three plants — Selai, Tewa and Ameego Pago — allegedly showed propane levels above the permitted threshold.

According to the regulator, the samples contained more than 50 per cent propane, far above the industry requirement it cited for a propane-butane LPG blend.

NMDPRA said representatives of the plants were questioned and identified Sublime Oil and Gas Limited, a Dangote Refinery off-taker, as their source of propane.

That triggered a wider investigation into propane production, loading, transportation and distribution.

The regulator alleged that some propane trucks recorded as heading to approved destinations never arrived.

In one instance, it told the court that Sublime Oil and Gas lifted 25 propane trucks on August 20 and 22 for delivery to Navgas/Agasco, but Navgas reportedly confirmed receiving only six.

That left 19 trucks unaccounted for, according to NMDPRA.

The regulator also alleged that another off-taker loaded 52 trucks in Delta State between May and August for delivery to Navgas, but that Navgas reportedly confirmed receiving none of them.

NMDPRA said the alleged diversion raised serious safety concerns because the propane could have ended up with unauthorised or unlicensed LPG operators and potentially been used for blending outside approved standards.

THE PRESSURE-PROBLEM ARGUMENT

The regulator further warned that the propane produced by Dangote and other gas-processing facilities reportedly has a vapour pressure of about 13 bar.

NMDPRA contrasted this with the approximately seven-bar maximum pressure it said applies to the standard propane-butane LPG mixture.

Its argument is straightforward: if high-pressure propane is introduced into facilities not designed to handle it, the consequences could be catastrophic.

The regulator therefore said it had directed Dangote to suspend propane loading and truck-out operations while the investigation continued and additional safety measures were considered.

DANGOTE FIRES BACK

Dangote, however, has rejected the regulator’s position and accused NMDPRA of exceeding its powers.

The company’s spokesman, Anthony Chiejina, argued that NMDPRA officials were stationed at the refinery and had inspected and certified the propane before it was released.

His question was blunt: if the regulator tested and approved the product at the refinery, why should Dangote be held responsible after an independent buyer took possession of it?

Chiejina also challenged NMDPRA’s attempt to link the refinery to what independent truck operators allegedly did after collecting their products.

He questioned whether Dangote could reasonably be responsible for the destination of a truck after the product had been purchased and transported by an independent off-taker.

The Dangote spokesman described NMDPRA’s attempted intervention at the refinery as an “absolute abuse of power”, arguing that the regulator had no justification for trying to interfere with the refinery after allegedly certifying its product.

COURTROOM TWIST

At Wednesday’s hearing, Dangote’s lawyer, Wale Akoni, SAN, asked for a short adjournment after NMDPRA’s counter-affidavit was served on him in court.

NMDPRA’s counsel, Matthew Burkaa, did not object but stressed the urgency of the matter, pointing to the safety concerns raised by the regulator.

Justice Aluko, however, said he could not fix a new hearing date because his assignment as vacation judge was ending with the court’s annual vacation.

The judge consequently extended the existing injunction.

He ordered that the case file be returned to the registry for assignment to the regular court by the Administrative Judge.

THE BATTLE IS FAR FROM OVER

The latest ruling does not settle the central dispute.

Instead, it preserves the status quo while the substantive case moves to the regular court.

At stake is more than a fight over propane.

The case raises fundamental questions about the limits of regulatory power, the responsibility of petroleum off-takers, the safety of LPG blending operations and whether a refinery can be sanctioned for what happens to its products after they leave its gates.

For now, NMDPRA cannot use the disputed suspension to interfere with Dangote Refinery’s operations under the subsisting interim order.

But the regulator’s allegations remain before the court — and the next phase of the legal battle could determine just how far NMDPRA can go in policing Nigeria’s biggest refinery and how much responsibility Dangote bears for the downstream movement of its petroleum products.