The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has unveiled proposed regulations aimed at curbing monopoly, abuse of market dominance, collusion and other anti-competitive practices in Nigeria’s petroleum midstream and downstream sectors.
The proposed “Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026” are also designed to guarantee open and non-discriminatory access to critical petroleum infrastructure, improve market transparency and promote fair competition.
Speaking at a stakeholders’ consultation forum on the proposed regulations in Abuja, the NMDPRA Chief Executive, Mallam Rabiu Umar, said the framework was being developed pursuant to Section 216 of the Petroleum Industry Act, PIA, 2021.
Umar said the regulations would strengthen the midstream and downstream sectors by preventing anti-competitive practices, addressing abuse of dominance and promoting fair access to essential infrastructure.
According to him, the Authority had received submissions from stakeholders on the draft and would consider their views before finalising the regulations.
He said: “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.”
Umar said effective regulation must provide certainty for investors, support 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.
The NMDPRA Chief Executive also disclosed that the Authority had recently signed a Memorandum of Understanding, MOU, with the Federal Competition and Consumer Protection Commission, FCCPC, to strengthen the regulatory framework for competition in the petroleum sector.
He said the mandates of both agencies were complementary, adding that the MOU would help strengthen regulatory coordination.
Giving an overview of the proposed regulations, NMDPRA Secretary and Legal Adviser, Dr Joseph Tolorunse, said the draft contained 138 regulations across 23 parts, covering competition issues across the midstream and downstream petroleum value chain.
He said the regulations would translate the competition provisions of the PIA into detailed and enforceable rules for the sector.
Tolorunse said the objectives included creating a level playing field, preventing monopoly and abuse of dominance, protecting consumers against collusion and market manipulation, guaranteeing open and non-discriminatory access to essential infrastructure and improving transparency of prices, capacity and market information.
The regulations, he said, would cover pipeline transportation, storage and terminals, wholesale petroleum liquids and gas, retail fuel distribution, petrochemicals and other related commercial activities.
Under the proposed rules, owners or controllers of essential infrastructure, including pipelines, storage terminals, jetties, bulk-loading facilities and depots, would be required to provide access to qualified third parties on transparent and non-discriminatory terms.
Such access, he said, could only be restricted on legitimate technical, safety and creditworthiness grounds.
The proposed regulations would also require operators providing midstream and downstream services to disclose tariffs, fees and general service conditions.
Tolorunse said operators would be prohibited from imposing hidden surcharges, offering undisclosed preferential arrangements or entering informal agreements that alter published access conditions.
On collusion, he said competing operators would be prohibited from coordinating pump prices, ex-depot prices, margins, discounts, freight charges, supply levels, territories, customer allocation and tender submissions.
The regulations would also subject certain petroleum contracts and commercial arrangements to competition scrutiny where they could substantially restrict competition.
These include exclusive supply agreements, long-term contracts, take-or-pay arrangements, tying and bundling, loyalty rebates, minimum-volume commitments, resale price maintenance and certain franchise restrictions.
On market dominance, Tolorunse clarified that the regulations would not prohibit a company from becoming dominant but would prohibit the abuse of such dominance.