The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has proposed a new regulatory framework targeting anti-competitive behaviours and market abuse, in a decisive move to protect investors and foster fair competition across the country’s petroleum value chain.
Speaking during the stakeholders consultative forum in Abuja on Tuesday, Rabiu Umar, the Authority Chief Executive of NMDPRA said that the regulation titled: ‘Prevention of Anti- Competitive Practices and Behaviour Regulations 2026’, is in pursuant to section 216 of the Petroleum Industry Act 2021.
According to Umar, 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 to essential infrastructure, and also enhancing transparency and market efficiency.
‘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 to essential infrastructure, and also enhancing transparency and market efficiency. I
‘In furtherance to this, the Authority has received several submissions from its stakeholders regarding the proposed regulations which will be reviewed.
‘The Authority recognizes that effective regulation must provide regulatory certainty, support investment and innovation, promote efficient markets, and protect the integrity of the petroleum sector. This is therefore a consultation in the true sense of the word. We are here to listen, to learn, and improve the draft where necessary,’ he said.
Speaking further, Umar explained that the Authority had recently signed a memorandum of understanding with the Federal Competition and Consumer Preotection Commission (FCCPC) to protect the market against price fixing, cartel behaviour, product withholding, under-dispensing and other practices that distort competition.
The partnership, formalised through a collaborative agreement between the two agencies, is expected to strengthen market surveillance, information sharing, investigations and enforcement across Nigeria’s deregulated petroleum market.
Joseph Tolunrunse, Authority’s secretary and legal adviser, who gave an overview of the draft, said that the document wnich contains 138 regulations, covers pricing conduct, infrastructural assets, dominance and vertical integration, mergers and changes of control, digital markets and data (including AI-related issues), enforcement, compliance and inter-agency coordination.
‘The central purpose of the regulation is to translate the competition provisions of the Petroleum Industry Act 2021 into detailed, enforceable rules for the midstream and downstream petroleum industry,’ Tolunrunse said.
According to him, the regulation seeks to creat a level playing field in the sector, prevent monopoly and abuse of dominant positions; protect consumers from market manipulation and anti-competitive behaviour and guarantee open, non-discriminatory access to essential infrastructure (pipelines, depots, terminals, storage).
The regulation also seeks to improving transparency of prices, capacity and market information, atract investment by providing regulatory certainty while aligning Nigeria’s petroleum competition regime with international best practice.
He said the rules would apply to licensees, their affiliates and other persons engaged in commercial activities in the sector, including industry associations where their activities could affect competition.
Tolunrunse described the draft as a shift in NMDPRA’s approach, from mainly licensing and technical oversight to actively regulating how market power is exercised in the sector.
‘This regulation, therefore, attempts to address the economic architecture of the market: who gets assets, on what terms, at what price, with what information, and subject to what competitive safeguards,’ he added.