NMDPRA proposes tougher rules for petroleum market competition

Nigeria’s petroleum regulator has proposed new rules to curb monopoly, fuel price fixing, market sharing and other anti-competitive conduct in the midstream and downstream petroleum sector.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority is pushing the draft framework under the proposed Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026.

Punch reported that the proposed rules would cover how petroleum companies use pipelines, terminals, storage facilities, pricing information, commercial contracts and digital platforms. Vanguard reported that the proposal contains 138 rules aimed at checking monopoly, abuse of dominance, collusion and related practices.

The draft regulations were released for public consultation on August 6, 2026, with licensees, permit holders and other stakeholders asked to submit comments within 21 days.

At a stakeholders’ consultation in Abuja, NMDPRA chief executive Rabiu Umar said the framework was intended to make the petroleum market more transparent and efficient while protecting investors and consumers.

Some stakeholders, however, warned that parts of the draft could discourage long-term contracts in a capital-heavy sector where investors need time to recover their money.

The consultation followed concerns in the downstream market over alleged coordinated pricing by some fuel importers and wider questions about access to critical petroleum infrastructure.

Sources: Punch, Vanguard