The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has intensified its crackdown on market abuse in the petroleum sector. In a circular from its Abuja headquarters, the Authority warned that it will revoke the operating licences of fuel stations found to be under-dispensing petroleum products. This practice is considered a serious breach of consumer trust that will not be tolerated. The Authority has directed all retail outlet operators to immediately calibrate and verify their dispensers and totalisers.
The NMDPRA has intensified nationwide inspections and enforcement activities to check for under-dispensing and other practices that compromise dispensing accuracy. The Authority has called on industry associations, including MEMAN, DAPPMAN, IPMAN, and PETROAN, to promptly notify their members of the directive and support full compliance across the industry. This move aims to ensure that consumers receive the full value of products purchased. The Authority has also presented a draft competition code for the industry, which outlines regulations to prevent anti-competitive practices.
The draft Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026, is a 138-regulation, 23-part framework that gives Nigeria's petroleum sector its own dedicated competition code. This code translates the competition provisions of Section 216 of the Petroleum Industry Act (PIA) 2021 into enforceable, sector-specific rules. The regulations address infrastructure access, dominance, vertical integration, mergers, and digital markets. At its core is a broad prohibition against any conduct, agreement or practice that prevents, restricts or distorts competition.
The NMDPRA has received several submissions from operators and is seeking their practical experience to shape the final text of the regulations. The Authority's chief executive, Rabiu Abdullahi Umar, declared a Stakeholders' Consultation Forum open, urging participants to flag provisions needing clarification and propose practical alternatives. The forum aims to gather input from stakeholders to improve the draft regulations.
The regulations will bar owners of pipelines, terminals, jetties, and depots from unjustifiably denying access to qualified third parties. Tariffs will be required to be published and accessible to ensure transparency. The Authority aims to create a fair and competitive market that benefits both operators and consumers. The regulations will also address issues of under-dispensing and other practices that compromise dispensing accuracy.
The NMDPRA's efforts to crack down on market abuse and ensure compliance with regulations have been welcomed by industry stakeholders. The Authority's commitment to enforcing regulations and protecting consumer interests is seen as a positive step towards creating a fair and transparent market. The draft regulations will undergo further consultation and refinement before being implemented.
The NMDPRA's actions are expected to have a significant impact on the petroleum sector, promoting fair competition and protecting consumer interests. The Authority's efforts to prevent anti-competitive practices and ensure compliance with regulations will help to build trust in the market and promote economic growth. The implementation of the regulations will be closely monitored to ensure their effectiveness.
Key points
- NMDPRA to revoke licences of fuel stations found under-dispensing products
- Draft competition code outlines regulations to prevent anti-competitive practices
- Regulations aim to promote fair competition and protect consumer interests
