The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Dangote Petroleum Refinery have clashed in court over the regulator’s directive to suspend propane loading and truck-out operations at the refinery.
At the Federal High Court in Lagos on Wednesday, NMDPRA asked the court to discharge an interim order restraining it from enforcing the suspension, alleging that the order was obtained through misrepresentation and suppression of material facts.
The regulator said its action followed an investigation into the alleged diversion of propane-laden trucks to unlicensed customers and the alleged illegal blending of propane at some LPG plants.
NMDPRA also alleged discrepancies in truck-out records, including 19 propane trucks it said were lifted from Dangote Refinery but were not received by the stated destination.
The agency further raised safety concerns, claiming that the propane involved had a higher vapor pressure than the level permitted for standard propane-butane LPG mixtures.
Dangote, however, rejected the allegations. Its spokesman, Anthony Chiejina, said NMDPRA officials had inspected and certified the refinery’s propane before it was collected by independent off-takers.
He argued that the refinery could not be held responsible for where buyers took the product after leaving its facility, describing the regulator’s actions as an abuse of power.
NMDPRA also challenged the jurisdiction of Justice Akintayo Aluko, arguing that the August 31 interim order was improperly obtained.
However, Justice Aluko extended the order restraining NMDPRA from entering, sealing, shutting down, disrupting, or otherwise interfering with the refinery’s operations.
The judge said the order would remain in force until the substantive application is heard or further directions are issued.
Justice Aluko, who is sitting as a vacation judge, directed that the case file be returned to the registry for assignment to a regular court.
The dispute will therefore continue as the court determines NMDPRA’s regulatory powers, the safety concerns surrounding the propane, and the allegations of product diversion.
