By Julius Peter, Abuja
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has commenced consultations with stakeholders on a draft regulation designed to prevent anti-competitive practices and promote fair competition in Nigeria’s midstream and downstream petroleum industry.
The draft Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026 is being developed pursuant to Section 216 of the Petroleum Industry Act (PIA) 2021.
The consultation, which brought together relevant stakeholders in the petroleum industry, is aimed at obtaining practical contributions that would strengthen the proposed regulatory framework before its finalisation.
Opening the consultation session, the Chief Executive of the NMDPRA, Mallam Rabiu A. Umar, emphasised the importance of establishing an effective regulatory environment capable of providing certainty for investors while safeguarding the integrity and competitiveness of the petroleum market.
Umar urged industry participants and other stakeholders to actively contribute to the consultation process, stressing that their practical experiences and technical knowledge would be valuable in developing regulations that are effective, transparent and responsive to developments in the sector.
He noted that a sound regulatory framework was necessary to create confidence among investors and industry operators, while ensuring that consumers and other market participants were protected from practices capable of undermining healthy competition.
Presenting the draft framework, the Authority’s Secretary and Legal Adviser, Dr Joseph Tolorunse, outlined some of the major provisions contained in the proposed regulations.
According to him, the framework seeks to address a broad range of conduct and market practices that could restrict competition or create an unfair advantage for particular operators.
Among the key areas covered by the draft are open access to infrastructure, prohibition of cartels and collusion, pricing transparency, prevention of abuse of dominant market positions, scrutiny of contracts and mergers, as well as regulation of digital markets and artificial intelligence-driven pricing mechanisms.
The proposed provisions on infrastructure access are expected to promote fair and non-discriminatory access to relevant petroleum infrastructure, thereby reducing practices that could restrict other legitimate market participants from operating effectively.
The draft also seeks to prohibit agreements and arrangements involving cartels, collusion or other forms of coordinated behaviour capable of distorting competition, manipulating markets or disadvantaging consumers and competing businesses.
On pricing, the framework places emphasis on transparency and responsible market conduct, with the objective of discouraging practices that could lead to unfair pricing or distort market signals.
The draft further provides for regulatory scrutiny of certain contracts, mergers and related transactions where such arrangements could have significant implications for market competition Of particular significance is the inclusion of provisions addressing digital markets and artificial intelligence-based pricing.
The incorporation of emerging technologies into the proposed regulatory framework reflects the growing use of digital systems, automated decision-making and data-driven pricing mechanisms across modern markets. The provisions are intended to ensure that technological innovation does not become a vehicle for anti-competitive behaviour.
The proposed regulations also provide for coordination between the NMDPRA and the Federal Competition and Consumer Protection Commission (FCCPC) in matters relating to competition and market conduct.
The framework would empower the NMDPRA to monitor developments within the midstream and downstream petroleum markets, investigate suspected violations and take appropriate corrective and enforcement measures in accordance with its statutory mandate.
The Authority said the proposed framework was part of broader efforts to establish a predictable and transparent operating environment in the petroleum sector, while ensuring that market participants compete on a fair basis.
During the consultation, the NMDPRA urged industry operators and other participants to critically review their existing business practices in anticipation of the proposed regulatory regime.
In particular, stakeholders were advised to examine their pricing models, infrastructure access arrangements, transactions involving affiliates and corporate governance structures to ensure that their practices are consistent with the emerging competition framework.
The Authority encouraged stakeholders to submit practical observations and recommendations as the consultation process continues, with a view to addressing potential gaps and improving the effectiveness of the regulations.
The consultation is expected to provide an opportunity for operators, investors and other relevant stakeholders to raise concerns, offer technical input and contribute to the development of rules that balance regulatory oversight with investment, innovation and efficient market operations.
The proposed regulations, when finalised, are expected to provide additional clarity on acceptable market behaviour and strengthen the NMDPRA’s capacity to address practices that may undermine competition in Nigeria’s midstream and downstream petroleum industry.
The initiative also underscores the evolving regulatory landscape following the enactment of the Petroleum Industry Act, as authorities continue to develop specific frameworks to support transparency, investment, competition and accountability across the petroleum value chain.
