The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has proposed 138 new regulations to curb unfair competition and monopoly in Nigeria's oil sector. The proposed regulations, contained in 23 parts, aim to establish detailed competition rules for the industry. The rules will prohibit practices such as price-fixing, collusion, and abuse of dominance. They will also regulate access to critical petroleum infrastructure and impose greater transparency requirements on tariffs and commercial information.
The proposed Midstream and Downstream Petroleum Prevention of Anticompetitive Practices and Behaviour Regulations, 2026, are designed to strengthen competition in the sector while providing greater certainty for investors and protecting the integrity of the petroleum market. The regulations will scrutinise contracts, mergers, joint ventures, and other commercial agreements. The NMDPRA Chief Executive, Rabiu Umar, stated that the framework is intended to strengthen the midstream and downstream petroleum sector by preventing anti-competitive practices and promoting fair market practices.
The NMDPRA 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. The MoU aims to ensure that the mandates of both regulatory bodies are complementary and not conflicting. The FCCPC is empowered to ensure fair market practices in the country and in the sector. The NMDPRA recognises that effective regulation must provide regulatory certainty, support investment and innovation, and protect the integrity of the petroleum sector.
The proposed regulations have been submitted to stakeholders for review and input. The NMDPRA is seeking views on the clarity, practicality, and likely impact of the proposed regulations. Stakeholders are encouraged to identify specific provisions that may require clarification or refinement and suggest practical alternatives that can achieve the intended regulatory objectives. The Authority aims to give industry stakeholders a chance to have an input in the regulations.
The regulations will prohibit a range of practices including price-fixing, collusion, market allocation, bid rigging, and coordinated supply restrictions. They will also regulate access to critical petroleum infrastructure such as pipelines, storage terminals, jetties, bulk-loading facilities, and depots. The regulations will impose greater transparency requirements on tariffs, fees, capacity, and other commercial information. This will promote fair and non-discriminatory access to essential infrastructure.
The NMDPRA is committed to ensuring that the regulations provide a fair and level playing field for all stakeholders in the sector. The regulations will promote efficient markets and protect the integrity of the petroleum sector. The Authority recognises that the sector is critical to the country's economy and that effective regulation is necessary to ensure its growth and development. The proposed regulations are a step towards achieving this goal.
The stakeholders' consultation on the proposed regulations was held in Abuja, where the NMDPRA Chief Executive, Rabiu Umar, stated that the framework is 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 and promoting fair market practices. The regulations will have a positive impact on the sector and the economy as a whole.
Key points
- The proposed regulations aim to prevent anticompetitive practices and promote fair market practices in Nigeria's midstream and downstream petroleum sector.
- The regulations will prohibit practices such as price-fixing, collusion, and abuse of dominance.
- The NMDPRA has signed an MoU with the FCCPC to strengthen regulatory coordination and fair market practices in the petroleum sector.
