NMDPRA: Initiates Consultation on Anti-Competitive Petroleum Regulations Nigeria

• The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has called for stakeholder comments on proposed anti-competitive petroleum regulations.
• The draft Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026, aim to ban fuel price-fixing, artificial scarcity, bid rigging, and other collusive practices.
• This initiative is mandated by Section 216(1) of the Petroleum Industry Act 2021 and follows recent allegations of coordinated pricing by major fuel importers.
• Licensees, permit holders, and other stakeholders have 21 days from the public notice date to submit their observations on the draft regulations.
• A consultation forum on the proposed regulations is scheduled for September 22, 2026, at the NMDPRA headquarters in Abuja.

The proposed NMDPRA anti-competitive petroleum regulations Nigeria are comprehensive, targeting a wide array of practices deemed detrimental to market integrity.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has initiated a critical stakeholder consultation process regarding its proposed Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026. This significant step aims to introduce stringent measures against various forms of anti-competitive conduct within Nigeria's vital petroleum sector. In a public notice posted on its official X handle yesterday, the Authority formally invited licensees, permit holders, and other interested parties to submit their observations on the draft regulations.

This call for input is a direct fulfillment of Section 216(1) of the Petroleum Industry Act 2021 (PIA 2021), which mandates comprehensive stakeholder engagement before any new regulations are finalized. The notice, signed by Rabiu A. Umar, the Authority's Chief Executive, specified a 21-day window for submissions, urging stakeholders to review the draft available on the NMDPRA's website. The Authority has made it clear that these proposed regulations are designed to outlaw virtually every form of coordinated behavior that could undermine fair competition in the Nigerian petroleum market.

The proposed NMDPRA anti-competitive petroleum regulations Nigeria are comprehensive, targeting a wide array of practices deemed detrimental to market integrity. A review of the draft reveals an intent to dismantle conduct such as pump price coordination, the creation of artificial scarcity, bid rigging, customer allocation, and the establishment of exclusive supply arrangements. Furthermore, the regulations seek to prohibit the exchange of commercially sensitive information among competitors, recognizing its potential to distort market dynamics.

Specifically, Part IV of the draft, titled 'Collusive Agreements and Anti-Competitive Coordination,' explicitly forbids petroleum companies from engaging in any formal or informal agreements. These prohibitions extend to arrangements, understandings, or concerted practices—whether written or oral, explicit or tacit—that are designed to prevent, restrict, or distort competition. The regulations particularly identify price-fixing or any form of coordinated pricing behavior as strictly prohibited conduct, reinforcing the Authority's commitment to a robust Nigeria fuel price fixing ban.

This regulatory initiative by the NMDPRA comes amidst heightened concerns regarding pricing practices within the downstream petroleum sector. These concerns gained significant traction in July following allegations made by independent marketers. They claimed that certain major fuel importers were selling imported Premium Motor Spirit (PMS) at prices that were coordinated and significantly higher than those offered by the Dangote Petroleum Refinery. Such allegations underscored the urgent need for a stronger Nigeria petroleum market competition law to prevent market manipulation and ensure fair pricing for consumers.

The Authority's move is a direct response to these issues, aiming to create a more transparent and competitive environment. By proactively addressing potential anti-competitive behaviors, the NMDPRA seeks to safeguard the interests of both market participants and the general public, ensuring that the petroleum sector operates on principles of fairness and open competition.

The NMDPRA stakeholder consultation process is crucial for the finalization of these regulations. Licensees, permit holders, and other stakeholders are encouraged to visit the Authority's website to access the proposed regulations and submit their observations. All submissions must adhere to the specified format available online and must be received no later than 21 days from the date of the public notice.

Beyond written submissions, the Authority has also scheduled a dedicated stakeholders' consultation forum. This forum is set to take place on September 22, 2026, at the NMDPRA's headquarters in Abuja, providing an additional platform for direct engagement and discussion on the proposed Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026. This comprehensive approach ensures that all relevant voices are heard before the regulations are enacted.

Lawyers advising clients in Nigeria's midstream and downstream petroleum sector must review the proposed anti-competitive regulations and submit comments within 21 days. These regulations, once finalized, will impose strict prohibitions on practices like price-fixing and market allocation, requiring immediate compliance adjustments to mitigate exposure.

Source: Original reporting via Daily Trust