The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has initiated stakeholder consultations on proposed regulations aimed at preventing anti-competitive practices in the midstream and downstream petroleum sector. The regulations, titled Midstream and Downstream Petroleum Prevention of Anticompetitive Practices and Behaviour Regulations, 2026, comprise 138 regulations across 23 parts. These regulations are designed to address issues such as price fixing, infrastructure access, market dominance, mergers, and digital pricing in the sector.
NMDPRA Chief Executive, Rabiu Umar, unveiled the proposed regulations at a Stakeholders’ Consultation Forum in Abuja. Umar stated that the regulations were made pursuant to Section 216 of the Petroleum Industry Act (PIA), 2021, and are intended to strengthen the sector. The proposed regulations aim to prevent anti-competitive practices, address abuse of dominance, promote fair and non-discriminatory access to essential infrastructure, and enhance transparency and market efficiency.
The Authority has already received several submissions from stakeholders on the proposed regulations, which were reviewed at the forum. The consultation seeks to draw on the practical experience of industry players, particularly their views on the clarity, practicality, and likely impact of the draft regulations. Umar urged participants to identify provisions requiring clarification and propose practical alternatives where necessary.
The Executive Director emphasized that the Authority is guided by the need for regulatory certainty, adding that effective regulation must support investment and innovation, promote efficient markets, and protect the integrity of the petroleum sector. The consultation aims to ensure that the final regulation does not inadvertently create jurisdictional conflict, duplication, or uncertainty.
The Legal Secretary of NMDPRA, Dr. Joseph Tolorunse, presented an overview of the regulations, stating that the instrument translates the competition provisions of the Petroleum Industry Act 2021 into detailed, enforceable rules for operators. Regulation 3 imposes a blanket ban on any agreement or practice that has the object or effect of preventing, restricting, or distorting competition.
The regulations also compel owners of pipelines, depots, and terminals to provide open, non-discriminatory access to third parties, while requiring operators to publicly disclose tariffs and service conditions. Coordination among rivals on pump prices, margins, freight charges, and tender submissions is expressly prohibited. The rules do not outlaw dominance itself but prohibit abuse of dominance.
A dedicated review mechanism will subject mergers, acquisitions, and significant joint ventures to competition scrutiny, assessing factors such as market concentration, barriers to entry, and effects on consumers. The regulations also address algorithmic and AI-based pricing and formalize concurrent jurisdiction between NMDPRA and the Federal Competition and Consumer Protection Commission (FCCPC).
Key points
- The proposed regulations aim to prevent anti-competitive practices and promote fair competition in the midstream and downstream petroleum sector.
- The regulations will ensure that operators provide open, non-discriminatory access to essential infrastructure and publicly disclose tariffs and service conditions.
- The regulations also address issues such as mergers, acquisitions, and significant joint ventures, and formalize concurrent jurisdiction between NMDPRA and FCCPC.
