The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Tuesday announced that it was proposing 138 new regulations to rein in unfair competition, monopoly and abuse of market power in Nigeria’s midstream and downstream petroleum sector.
The proposed Midstream and Downstream Petroleum Prevention of Anticompetitive Practices and Behaviour Regulations, 2026, contained in 23 parts, the regulator explained, is an attempt to establish detailed competition rules for the industry.
The rules, if finalised, would prohibit a range of practices including price-fixing, collusion, market allocation, bid rigging, coordinated supply restrictions and the abuse of dominant positions.
They would also regulate access to critical petroleum infrastructure such as pipelines, storage terminals, jetties, bulk-loading facilities and depots, while imposing greater transparency requirements on tariffs, fees, capacity and other commercial information.
Speaking at a stakeholders’ consultation on the proposed regulations in Abuja, the NMDPRA Chief Executive, Rabiu Umar, said the framework was designed to strengthen competition while providing greater certainty for investors and protecting the integrity of the petroleum market.
“The proposed regulations are intended to strengthen the midstream and downstream petroleum sector by preventing anti-competitive practices, addressing abuse of dominance, promoting fair and non-discriminatory access in essential infrastructure, and also enhancing transparency and market efficiency,” he stated.
According to him, the Authority has received several submissions from its stakeholders regarding the proposed regulations, which will be reviewed to give industry stakeholders a chance to have an input.
“We particularly welcome your views on the clarity, practicality, and likely impact of the proposed regulations. We encourage participants to identify specific provisions that may require clarification or refinement and, where appropriate, suggest practical alternatives that can achieve the intended regulatory objectives,” he stated.
The Authority, he said, recognises that effective regulation must provide regulatory certainty, support investment and innovation, promote efficient markets and protect the integrity of the petroleum sector.
Umar stressed that the Authority had recently signed a Memorandum of Understanding (MoU) with the Federal Competition and Consumer Protection Commission (FCCPC) to strengthen regulatory coordination and fair market practices in the petroleum sector.
He said: “A few weeks ago we signed an MoU, a Memorandum of Understanding, with the FCCPC, which by law is also empowered to ensure that there are fair market practices in the country and in the sector. Our mandates are not necessarily conflicting.
“Our mandates are complementary. And as a result of that, we have signed an MoU with the FCCPC to make sure that we strengthen the regulatory environment as regards the petroleum midstream and downstream sector in the country.”
Giving an overview of the draft, the Authority Secretary and Legal Adviser to the Board, Joseph Tolorunse, said the proposed rules were intended to translate the competition provisions of the Petroleum Industry Act (PIA) 2021 into detailed and enforceable provisions specifically tailored to the midstream and downstream petroleum industry.
He explained that the framework went beyond conventional restrictions on price-fixing, covering infrastructure access, dominant firms, vertical integration, mergers, digital markets, enforcement, penalties, compliance and coordination between regulatory agencies.
Tolorunse said the regulations would effectively make competition protection a core component of petroleum regulation rather than leaving competition issues solely to general competition law.
“The foundation of the regime is Regulation 3, which prohibits any conduct, agreement, arrangement, understanding, decision, or practice that has the object or effect of preventing competition, restricting competition or distorting competition. This applies regardless of form, meaning both explicit agreements and informal practices are captured,” he said.
A significant aspect of the proposed framework, the overview showed, is its attempt to prevent companies from using control of critical infrastructure to shut out competitors from the market.
Under the rules, owners or controllers of essential petroleum infrastructure, including pipelines, storage terminals, jetties, bulk-loading facilities and depots, would be prohibited from unjustifiably refusing, delaying or obstructing access by qualified third parties.
