EXCLUSIVE: ‘We’re Being Made Scapegoats’: LPG Operators Question NMDPRA As Plants Shut While Alleged High-Propane Source Operates | Sahara Reporters

They also questioned why the depot they identified as the source of the high-propane product has continued operating while the downstream facilities that received the product have faced prolonged shutdowns.

Several Liquefied Petroleum Gas (LPG) plants have reportedly remained shut for weeks following regulatory concerns over unusually high levels of propane detected in LPG supplied to some facilities, with operators accusing the authorities of making them “scapegoats” in a widening dispute involving the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Dangote Petroleum Refinery.

Some affected operators told SaharaReporters that their plants have been closed for more than eight weeks, leaving them struggling to repay loans, pay workers and meet other financial obligations.

They also questioned why the depot they identified as the source of the high-propane product has continued operating while the downstream facilities that received the product have faced prolonged shutdowns.

The development comes amid a regulatory dispute between NMDPRA and Dangote Refinery that is now before the Federal High Court in Lagos.

Sources familiar with the matter told SaharaReporters that some of the affected LPG plants identified Sublime Oil and Gas Limited, a major off-taker from Dangote Refinery, as the source of the propane supplied to them.

The operators said the product subsequently became the subject of regulatory scrutiny after tests reportedly detected propane levels above the permitted threshold.

One source questioned why downstream operators were being subjected to prolonged closure when, according to the source, the facility allegedly linked to the supply remained operational.

“From what I understand, the depot owner can call the Presidency, and it appears they are now trying to use us as a scapegoat,” the source said.

“Some plants have been shut down for over eight weeks, with no consideration for the outstanding loans, staff salaries, and other liabilities,” the source added.

NMDPRA Explains High-Propane Investigation
A senior NMDPRA source, who requested anonymity because he was not authorised to speak publicly, confirmed that the regulator had received reports of possible propane adulteration in the market and subsequently commenced investigations.

“I’m aware that there was a report of propane adulteration in the market through some investigation and surveillance,” the official said.

The official said NMDPRA subsequently tested LPG at different outlets and found unusually high propane content.

“NMDPRA decided to investigate what actually happened. So, that was why they visited some LPG outlets to test the quality of the propane there, and they discovered that the propane content was high,” he said.

The official explained that LPG is generally produced by blending propane and butane in specified proportions and warned that a significantly higher propane content could create safety concerns because of its greater volatility.

“They usually mix propane with butane to form LPG in certain ratios,” he said, adding that where propane levels become significantly higher than expected, “it can lead to an explosion and all that.”

According to the official, the investigation led NMDPRA to identify producers involved in the supply chain and ask them to stop loading propane while the probe continued.

“They discovered it was coming from some propane producers. So, those producers were asked to stop loading it while the investigation continued,” he said.

However, the official cautioned against concluding that the producer was necessarily responsible for the alleged adulteration.

“All I can say is that all propane producers were asked to stop loading propane in order to ascertain where the adulteration was coming from,” he said.

“I can’t say this is coming from a particular producer. You know, the producer may not be the one that produced off-spec propane.”

He explained that producers, off-takers and LPG blending facilities have different roles in the supply chain.

“The producer produces propane. So, the off-taker takes the propane, and the off-taker is supposed to take it to somebody who will blend it with butane,” he said.

“So, if the off-taker did not take it to somebody who would blend it with butane and adulterated it, and they started selling it as LPG, you see the problem.”

NMDPRA, Dangote Dispute
The regulatory dispute became public after NMDPRA raised concerns over the composition, distribution and handling of propane supplied from the Dangote refinery.

The regulator told the Federal High Court in Lagos that laboratory tests conducted on samples from three LPG plants, namely Selai, Tewa and Ameego Pago, allegedly showed propane content above 50 per cent.

NMDPRA said the industry requirement provides for propane to constitute no more than 20 per cent of an LPG blend, with butane accounting for about 80 per cent.

According to the regulator, representatives of the three plants identified Sublime Oil and Gas Limited as their source of propane, prompting a wider investigation of the supply chain.

NMDPRA also told the court that its officials were denied access when they attempted to inspect propane-loading operations and relevant records at Dangote Refinery on August 24, 2026.

The regulator subsequently issued a notice of potential non-compliance to Dangote Refinery and directed the suspension of propane loading and truck-out operations pending further investigation and additional safety measures.

The regulator has also alleged discrepancies in propane truck-out records.

According to NMDPRA, Sublime Oil and Gas lifted 25 trucks of propane from Dangote Refinery on August 20 and 22 for delivery to Navgas/Agasco, but Navgas reportedly confirmed receiving only six, leaving 19 consignments allegedly unaccounted for.

NMDPRA also alleged that another off-taker loaded 52 trucks between May and August 2026 for delivery to Navgas, while Navgas reportedly confirmed receiving none of those consignments.

The regulator said the alleged diversion of propane to unauthorised or unlicensed customers raised safety concerns because the product could subsequently be used for LPG blending outside approved specifications.

Dangote Refinery has challenged NMDPRA’s regulatory action in court.

On August 31, Justice Akintayo Aluko issued an interim order restraining 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 further proceedings.

NMDPRA has urged the court to discharge the interim order, arguing that it was obtained through misrepresentation and suppression of material facts. The regulator has also challenged the jurisdiction of the court to grant the order.

Dangote, however, has accused NMDPRA of abusing its regulatory powers.

While the court battle continues, operators of some LPG plants affected by the regulatory exercise say they are bearing the financial consequences of the dispute.

They are demanding clarification on the specific findings against their facilities, the identity of the parties responsible for the high-propane product and the basis for keeping their plants shut for extended periods.

The operators also want NMDPRA to explain why enforcement action appears, according to their account, to have been concentrated on downstream plants while the facility they identified as the source of the product has continued operating.

For the affected businesses, the prolonged closures have meant continued loan obligations, salaries and other liabilities despite the loss of operating revenue.

“Some plants have been shut down for over eight weeks, with no consideration for the outstanding loans, staff salaries, and other liabilities,” one source said.