The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has commenced moves to strengthen competition in Nigeria’s petroleum industry with a new regulatory framework targeting cartels, market dominance and other anti-competitive practices.
The Authority disclosed this at a stakeholders’ consultation on the draft Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026, developed pursuant to Section 216 of the Petroleum Industry Act (PIA) 2021.
Opening the consultation held in Abuja on Tuesday, the NMDPRA Chief Executive, Mallam Rabiu Umar, said effective regulation was critical to providing certainty for investors, promoting investment and protecting the integrity of the petroleum market.
Umar urged industry stakeholders to bring their practical experience to the consultation process to help strengthen the proposed regulations.
Presenting the draft framework, the Authority’s Secretary/Legal Adviser, Dr Joseph Tolorunse, said the proposed regulations would address several areas of competition within the midstream and downstream sectors.
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According to him, key provisions include open access to infrastructure, prohibition of cartels and collusion, pricing transparency and measures to prevent abuse of market dominance.
The framework also proposes regulatory scrutiny of contracts and mergers, while introducing provisions for emerging areas such as digital markets and artificial intelligence-driven pricing.
Under the proposed regulations, NMDPRA would also coordinate with the Federal Competition and Consumer Protection Commission (FCCPC) on competition-related matters.
The framework empowers the petroleum regulator to monitor markets, investigate suspected violations, and impose corrective measures where it establishes anti-competitive conduct.
The Authority consequently urged industry operators to review their pricing models, infrastructure access arrangements, transactions involving affiliated companies and corporate governance structures as consultations on the draft regulations continue.
The initiative is expected to provide a clearer regulatory framework for competition while addressing practices that could distort pricing, restrict market access or undermine transparency in Nigeria’s petroleum industry.
Meanwhile, the Authority has threatened to revoke licences of fuel retail outlets found to be involved in under-dispensing petroleum products to Nigerian consumers.
In an industry circular, the Authority said it had observed incidents of under-dispensing at retail outlets nationwide, describing the practice as a serious breach of consumer trust.
It warned operators of fuel retail outlets to calibrate their pumps to reflect accurate measurement of what they dispense to consumers across the country.
These measures come as transporters, commuters and businesses continue to grapple with hikes in prices of fuel nationwide as crude oil prices remain high in the international market due to supply disruptions caused by geopolitical tensions in the Middle East.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X