NMDPRA Proposes 138 Rules to Curb Monopoly, Price-Fixing in Oil Sector
Reloaded News Desk
The Nigerian Midstream and Downstream Petroleum Regulatory Authority has proposed 138 new regulations aimed at preventing monopoly, price-fixing, collusion and abuse of market dominance in Nigeria’s petroleum industry.
The proposed Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations 2026 cover the midstream and downstream segments of the petroleum value chain.
The rules are contained in 23 parts and are being developed under Section 216 of the Petroleum Industry Act 2021.
NMDPRA Chief Executive, Rabiu Umar, said the framework is intended to strengthen competition, improve transparency and ensure fair and non-discriminatory access to essential petroleum infrastructure.
The proposed regulations would prohibit competing operators from coordinating pump prices, ex-depot prices, margins, discounts, freight charges, supply levels, territories, customers and tender submissions.
They would also place greater scrutiny on arrangements such as exclusive supply agreements, long-term contracts, take-or-pay arrangements, loyalty rebates, resale price maintenance and other practices that could restrict competition.
A major part of the proposal concerns access to critical infrastructure, including pipelines, storage terminals, jetties, bulk-loading facilities and depots.
Operators controlling such facilities would be required to provide qualified third parties access on transparent and non-discriminatory terms, subject to legitimate technical, safety and creditworthiness requirements.
The draft also proposes greater disclosure of tariffs, fees, service conditions and capacity information, while targeting hidden charges and undisclosed preferential arrangements.
The framework would further examine mergers, acquisitions, changes in control, joint ventures and vertically integrated operations where they could affect competition.
NMDPRA also wants the rules to address emerging competition risks involving digital platforms, market data and algorithm-based pricing.
The Authority said it has received submissions from industry stakeholders and will consider them before the regulations are finalised.
NMDPRA has also entered into a Memorandum of Understanding with the Federal Competition and Consumer Protection Commission to strengthen coordination between the two regulators in the petroleum sector.
The proposed regulations therefore represent a move to make competition oversight a more detailed part of petroleum regulation, rather than relying only on the broader provisions of the Petroleum Industry Act and general competition law.
The rules are not yet final and remain subject to the regulatory consultation process.
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