The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has introduced a new competition framework designed to check monopoly, price-fixing and abuse of market dominance across the country’s midstream and downstream petroleum industry.
The framework, known as the Midstream and Downstream Petroleum Prevention of Anticompetitive Practices and Behaviour Regulations (MDPPAPBR) 2026, was unveiled at a stakeholders’ consultation forum on Tuesday and comprises 138 regulations spread across 23 parts.
Speaking at the forum, the Authority’s Chief Executive, Rabiu Umar, said the proposed rules are meant to strengthen the sector by preventing anti-competitive conduct, tackling abuse of dominance, promoting fair access to essential infrastructure, and improving transparency and market efficiency.
He said the Authority had received extensive feedback from stakeholders ahead of the session and encouraged participants to flag any provisions requiring clarification.
Giving a breakdown of the draft rules, NMDPRA’s Secretary/Legal Adviser, Joseph Tolorunse, described the Regulations as a competition-law framework covering not just price-fixing but also infrastructure access, market dominance, vertical integration, mergers, digital markets, enforcement and inter-agency coordination.
He explained that the rules are designed to translate the competition provisions of the Petroleum Industry Act 2021 into enforceable regulations, with objectives that include creating a level playing field, preventing monopoly, protecting consumers from collusion, guaranteeing non-discriminatory access to infrastructure, and aligning Nigeria’s petroleum competition regime with global standards.
According to Tolorunse, the Regulations apply across pipeline transportation, storage and terminal operations, wholesale liquids and gas trading, retail fuel distribution, and petrochemical activities, binding licensees, permit holders, affiliates and industry associations whose conduct affects competition.
On specific provisions, he said the rules generally prohibit any agreement or practice that restricts or distorts competition, and bar owners of essential infrastructure such as pipelines, storage terminals and depots from unjustifiably denying access to qualified third parties. Access, he said, must be transparent and based only on legitimate technical, safety and creditworthiness grounds.
He added that operators would be required to publish tariffs and service conditions, with hidden surcharges and undisclosed preferential deals prohibited.
The framework also bars competitors from coordinating on pump prices, margins, discounts or market allocation, while extending oversight to commercial arrangements such as exclusive supply deals, tying, bundling and resale price maintenance where they significantly limit competition.
Tolorunse said the Regulations do not outlaw market dominance itself but target its abuse, with dedicated provisions on vertically integrated firms, affiliate transactions and cross-subsidisation.
He described the framework’s merger and acquisition review mechanism as one of its most significant features, noting that the Authority could assess such transactions for their effects on competition, market entry and consumer welfare.
He further noted that the rules extend into digital markets, covering algorithmic and AI-based pricing, shared data platforms and sensitive market information, an approach he called forward-looking for a petroleum-sector regulation.
On enforcement, Tolorunse said the Authority would have powers to monitor markets, investigate complaints, gather information, issue cease-and-desist orders and impose corrective remedies, alongside protections for whistleblowers.
He said the framework also recognises concurrent jurisdiction with the Federal Competition and Consumer Protection Commission (FCCPC), providing for coordinated reviews, information sharing and alignment of enforcement timelines.
Tolorunse said the Regulations mark a shift from simply licensing operators to actively regulating how market power is exercised in the sector, noting that liberalisation under the Petroleum Industry Act alone cannot guarantee genuine competition where a few players control essential infrastructure, supply or market information.
He said the new rules would strengthen NMDPRA’s capacity to act against infrastructure foreclosure, discriminatory access, collusion and abusive dominance, while making competition compliance a licensing-risk issue for operators.
He, however, cautioned that provisions on jurisdiction shared with the FCCPC would need careful review to avoid regulatory conflict or duplication.
