NMDPRA Moves To Curb Anti-Competitive Practices In Petroleum Sector

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has commenced consultation on proposed regulations aimed at preventing anti-competitive practices and promoting fair competition in the midstream and downstream petroleum sector.

Mr Rabiu Umar, Authority Chief Executive, said this on Tuesday in Abuja at a stakeholders’ consultation on the proposed Midstream and Downstream Petroleum Prevention of Anti-competitive Practices and Behaviour Regulations, 2026.

Umar said the proposed regulations were pursuant to Section 216 of the Petroleum Industry Act (PIA), 2021 and were designed to address abuse of dominance and promote fair and non-discriminatory access to essential petroleum infrastructure.

He said the regulations would also enhance transparency and market efficiency, while providing regulatory certainty, supporting investment and innovation and protecting the integrity of the petroleum sector.

He said the Authority had received submissions from stakeholders on the draft regulations, which would be reviewed as part of the consultation.

He urged stakeholders to identify provisions requiring clarification or refinement and suggest practical alternatives capable of achieving the intended regulatory objectives.

“The NMDPRA has signed a Memorandum of Understanding (MoU) with the Federal Competition and Consumer Protection Commission (FCCPC) to strengthen the regulatory environment for fair market practices in the petroleum sector.”

“The mandates of the two agencies are complementary and will support efforts to promote a fair and competitive midstream and downstream petroleum market,” he said.

In an overview, Dr Joseph Tolorunse, Authority Secretary and Legal Adviser, said the proposed regulations comprised 138 regulations across 23 parts, covering infrastructure access, market dominance, vertical integration, mergers, digital markets, enforcement, penalties and inter-agency coordination.

He said the framework was designed to translate the competition provisions of the PIA, 2021, into detailed and enforceable rules for the midstream and downstream petroleum sectors.

“The regulations seek to create a level playing field, prevent monopoly and abuse of dominance, protect consumers against collusion and market manipulation, and guarantee open and non-discriminatory access to essential infrastructure.”

“The regulations will also promote transparency in prices, capacity and market information, attract investment and align Nigeria’s petroleum competition regime with international practices,” he said.

Tolorunse said the framework would apply to pipelines, storage and terminals, wholesale petroleum liquids and gas, retail fuel distribution, petrochemicals and related commercial activities.

He said owners or controllers of essential petroleum infrastructure would be required to provide qualified third parties with transparent and non-discriminatory access, subject to legitimate technical, safety and creditworthiness considerations.

Tolorunse said competitors would be prohibited from coordinating pump prices, ex-depot prices, margins, discounts, freight charges, supply levels, territories, customers and tender submissions.

On dominant firms, he said the regulations did not prohibit dominance itself but would prohibit the abuse of market power in ways that harmed competition or exploited consumers.

He said the framework would also introduce competition reviews for mergers, acquisitions, changes in control and significant joint ventures.

Tolorunse said the Authority would consider issues such as market concentration, barriers to entry, effects on consumers and innovation, control of essential facilities and claimed efficiencies when reviewing transactions.

According to him, the framework provides the Authority with powers for market monitoring, investigations, information gathering, interim measures, cease-and-desist orders, corrective remedies and compliance monitoring.

He said the regulations recognised the concurrent jurisdiction and regulatory coordination between NMDPRA and FCCPC, adding that the framework contemplated cooperation between both agencies on mergers, information sharing, coordinated reviews, timelines and remedies.

He, however, emphasised the need to ensure that the final regulations did not create jurisdictional conflicts, duplication or uncertainty between the two regulatory bodies.

“The greatest significance is that it effectively creates a sector-specific competition code for Nigeria’s midstream and downstream petroleum industry.”

“It moves the regulatory system from simply licensing operators and regulating technical operations toward actively regulating how market power is exercised,” he said.