Eurafric Energy suffers setback in Dawes-Island v FG case

*FGN appeals against High Court ruling

Eurafric Energy’s appeal against the Federal Government’s revocation of its expired licence, which granted it the management of the Dawes-Island marginal field, has suffered a major setback as the Federal High Court in Lagos dismissed in its entirety the case brought against the Federal Government.

The operator’s license, which expired in June 2003, was previously awarded to Eurafric Energy in April 2019, without bringing the asset into commercial production.
In its motion and other authorities cited, the Federal Government through its counsel, FO Akerele, has successfully established issues of abuse of process of law, inadequacy of jurisdiction and misrepresentation of key facts against Eurafric Energy

In view of an impending dismissal, Eurafric Energy quickly filed a notice to dismiss to preserve the case, cleverly seeking to have it expunged, for the possibility of resuming action in the future.
However, the judge dismissed the case, thus ruling out the possibility of Eurafric Energy from bringing the matter before any court in Nigeria in the future.

It would be recalled that the Ministry of Petroleum Resources (MPR) and the Honorable Minister of Petroleum Resources (HMPR) as well as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) recently filed appeals and respective briefs in the Court of Appeal, Lagos Division against a similar case brought by Eurafric Energy; Appeal no. CA/LAG/CV/362/2026 and Appeal No.: CA/LAG/CV/625/2026 respectively.

In briefs filed on Monday 15 June 2026, the MPR/HMPR and the NUPRC, through their 17 and 20 grounds of appeal respectively, unequivocally affirmed the Federal Government’s determination to maintain the sanctity of Nigerian oil and gas regulation and to protect the sector from any form of abuse, exploitation and economic sabotage.
Any doubts about the Federal Government’s stance on consistent regulation of the oil and gas sector as it drives investment are being clarified by the coordinated efforts of the office of the Honorable Attorney General of the Federation, Prince Lateef Olasunkanmi Fagbemi, SAN.
The grounds addressed in the MPR/HMPR and NUPRC brief include the Federal High Court usurping the role of HMPR and NUPRC in the judgment of 29 January 2026, the lack of standing as Eurafric Energy’s license had expired and the company being blocked due to its participation in the subsequent bid for the asset.

While it is unclear whether Petralon 54 has filed its brief, the government’s frontal response to this issue is commendable. Without a doubt, this would represent a robust institutional arrangement that has brought sanity and stability to Nigeria’s energy sector, strengthened regulations and boosted investor confidence.
Consequently, industry observers have described the development as a positive sign for international investors and various categories of players in the Nigerian energy sector. Specifically, the coordinated response of the Federal Government, through its Chief Law Officer, the Ministry of Petroleum Resources and the NUPRC demonstrates a clear intent to position Nigeria as an enabling environment for investors, building greater confidence in regulatory certainty and enhancing the country’s attractiveness as a destination for long-term investment.
The development also supports the Tinubu administration’s One Million Barrels Initiative and aligns with recent measures to unlock investment, including the Bonga Southwest Aparo Deepwater Project, which is expected to attract approximately $20 billion in foreign direct investment into Nigeria’s oil and gas sector.