The suit brought against the Federal Government of Nigeria by Eurafric Energy over the revocation of its expired license, which granted it the operatorship of Dawes-Island Marginal Field, has been dismissed in its entirety by a Federal High Court sitting in Lagos.
The operatorhip licence, which expired in June 2003, was previously awarded to Eurafric Energy in April 2019 without bringing the asset to commercial production.
In its motion and additional authorities cited, the Federal Government through its lawyer, F. O. Akerele, successfully established issues of abuse of court process, jurisdictional inappropriateness, and misrepresentation of key facts against Eurafric Energy
With an imminent dismissal in sight, Eurafric Energy quickly filed a notice of discontinuance to preserve the case, cleverly seeking to have it struck out for the possibility of recommencing the action in the future.
However, the Judge dismissed the case, foreclosing the likelihood of bringing the matter before any court in Nigeria in future.
It would be recalled that the Ministry of Petroleum Resources (MPR) and the Minister of Petroleum Resources as well as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) recently filed appeals and their respective briefs of argument at the Court of Appeal, Lagos Division against a similar case brought by Eurafric Energy in Appeal No. CA/LAG/CV/362/2026 and Appeal No: CA/LAG/CV/625/2026 respectively.
In their briefs of argument filed on June 15, 2026, the MPR/HMPR and the NUPRC through their 17 grounds and 20 grounds of appeal respectively, unequivocally affirmed the Federal Government’s resolve to maintain the sanctity of the Nigerian Oil and Gas regulation and shield the sector from any form of abuse, exploitation, and economic sabotage.
Any doubts around the position of the Federal Government on consistent regulation of the oil and gas sector as it drives investments are cleared by the coordinated efforts of the office of the Attorney General of the Federation and Minister of Justice, Prince Lateef Olasunkanmi Fagbemi (SAN).
Grounds covered in the brief by the MPR/HMPR and NUPRC include a Federal High Court usurping the role of the HMPR and NUPRC in the January 29, 2026 judgement, lack of standing as Eurafric Energy’s licence had expired, and the company being estopped due to its participation in the subsequent bid for the asset.
Industry observers have described the development as a positive signal to international investors and various categories of players in the Nigerian energy sector.
Specifically, the coordinated response by the Federal Government, through its Chief Law Officer, Ministry of Petroleum Resources, and NUPRC, they said, demonstrates a clear intent to position Nigeria as an enabling environment for investors by building greater confidence in regulatory certainty and enhancing the country’s attractiveness as a destination for long-term investment.
The development, they said, also supports the President Bola Ahmed Tinubu Administration’s Project One Million Barrels Initiative and aligns with recent measures to unlock investments, including the Bonga Southwest Aparo Deepwater Project, which is expected to attract about $20 billion in Foreign Direct Investment (FDI) into Nigeria’s oil and gas sector.
More details here...
