The proposed Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026, focus on curbing monopolistic behavior, market dominance abuses, and collusion, thereby promoting fair competition and ensuring non-discriminatory access to critical petroleum infrastructure.
Mallam Rabiu Umar, the NMDPRA Chief Executive, emphasized that these regulations stem from Section 216 of the Petroleum Industry Act (PIA) of 2021 and aim to enhance market transparency, efficiency, and investor certainty while fostering innovation. During a stakeholders’ consultation in Abuja, he mentioned the importance of gathering feedback from various stakeholders to refine these draft regulations.
Dr. Joseph Tolorunse, NMDPRA Secretary and Legal Adviser, outlined that the draft consists of 138 regulations across 23 parts, targeting various aspects of competition throughout the petroleum value chain. Key objectives include the establishment of a level playing field, prevention of monopolistic behaviors, protection against collusion, and improved transparency concerning prices and market information. The regulations will encompass diverse areas such as pipeline transportation, storage, wholesale distribution, and retail fuel distribution.
Critical components of the regulations require owners of essential infrastructures—like pipelines and storage terminals—to provide third-party access under fair and transparent conditions, limiting restrictions to legitimate safety and technical reasons. Furthermore, operators must disclose tariffs and service conditions explicitly, thereby prohibiting hidden fees and preferential arrangements.
To combat collusion, the regulations will bar competing operators from coordinating on pricing and supply-related operations. Moreover, the draft scrutinizes certain commercial agreements, ensuring they do not hinder competitive dynamics. While companies may achieve market dominance, the regulations aim to prevent the abuse of such power, focusing on fair treatment and competition among operators.
The framework also encompasses provisions regarding mergers, acquisitions, and joint ventures, factoring in market concentration and consumer impact to evaluate potential competition concerns. Digital market dynamics, particularly where algorithms may influence coordinated pricing or access, are also addressed.
NMDPRA’s regulatory capabilities will be enhanced to include market monitoring, complaint management, and the issuance of corrective measures. The establishment of a Memorandum of Understanding (MoU) with the Federal Competition and Consumer Protection Commission (FCCPC) aims to bolster regulatory coordination and avoid overlap in jurisdiction. Overall, the proposed regulations seek to extend petroleum oversight beyond mere licensing and technical operations, directly engaging with how market power is utilized within the sector, thereby recognizing that liberalization alone does not guarantee effective competition.
