The Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) have signed a Memorandum of Understanding (MoU) to strengthen collaboration and regulatory oversight in the petroleum sector.
The agreement, signed in Abuja by the FCCPC Executive Vice Chairman, Tunji Bello, and NMDPRA Chief Executive, Rabiu Abdullahi Umar, is aimed at deepening information sharing, enhancing market intelligence and coordinating enforcement activities between the two agencies.
The MoU will also establish clear mechanisms for collaboration on matters that intersect the mandates of both regulators.
The agencies said the agreement was intended to strengthen their collective capacity to promote a competitive, transparent and consumer-focused petroleum market.
Speaking at the signing ceremony, Bello said the petroleum sector remained one of the most strategically important sectors of the Nigerian economy.
‘The petroleum sector remains one of the most strategically important sectors of our economy. It affects transportation, food prices, manufacturing, and ultimately the daily lives of millions of Nigerians,’ he said.
According to him, the sector must operate efficiently, competitively and transparently to protect consumers while encouraging investment.
Bello said stronger coordination between the FCCPC and NMDPRA would help address regulatory issues more effectively and promote a market that works in the interest of both consumers and businesses.
‘The Signing of this MOU is significant because it formalises a statutory relationship that has been developing through various levels of collaboration between the two institutions. It is the strengthening of institutional cooperation in the service of Nigerian consumers, enhancing confidence in our markets, and ensuring the gains of economic reform.
‘The Petroleum Industry Act 2021 empowers the NMDPRA as the technical and licensing regulator for licensing, technical standards, operational compliance, price setting, and supply oversight of the midstream and downstream petroleum sector.
‘The FCCPC, on the other hand, derives its mandate from the Federal Competition and Consumer Protection Act 2018. Its responsibility is different, but complementary. The Commission is charged with promoting fair competition, preventing anti-competitive conduct, protecting consumers from unfair and exploitative practices, and ensuring that markets work for the benefit of all participant’.
Mr. Bello explained that the FCCPC does not regulate or approve petroleum prices in a deregulated downstream market. It ensures that market outcomes are driven by fair competition rather than collusion, by innovation rather than dominance; and by consumer choice rather than exploitation.
He said, Where there is evidence of cartel behaviour, price fixing, abuse of dominance, restrictive agreements, market allocation, misleading pricing, under-dispensing, adulteration, or other harmful conduct, or any conduct designed to undermine competition, the FCCPC has a clear statutory obligation to investigate and take appropriate action.
For industry operators, this partnership should be seen as a positive development. Competitive and transparent markets ultimately benefit responsible businesses. Businesses that innovate, invest, comply with regulations, and serve consumers fairly have nothing to fear from effective regulation.
For Nigerian consumers, the message is equally clear, your welfare remains at the centre of the FCCPC’s work. Consumers are encouraged to continue reporting suspected violations through the appropriate channels available at both FCCPC and NMDPRA.
The agencies will work to protect consumers, promote fair competition, strengthen confidence in the petroleum sector, and contribute to the sustainable growth of the Nigerian economy. This Agreement reflects a shared understanding that effective regulation in today’s marketplace requires cooperation, coordination, and a common focus on the national interest.