…Unveils framework to check monopoly, collusion, abuse of dominance
By Obas Esiedesa, Abuja
ABUJA — The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, has unveiled proposed regulations comprising 138 rules aimed at curbing monopoly, abuse of market dominance, collusion and other anti-competitive practices in Nigeria’s petroleum midstream and downstream sectors
The proposed Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026 are also designed to guarantee open and non-discriminatory access to critical petroleum infrastructure, improve market transparency and promote fair competition
Speaking at a stakeholders’ consultation forum on the proposed regulations in Abuja, NMDPRA Chief Executive, Mallam Rabiu Umar, said the framework was being developed pursuant to Section 216 of the Petroleum Industry Act, PIA, 2021
Umar said the regulations would strengthen the midstream and downstream sectors by preventing anti-competitive practices, addressing abuse of dominance and promoting fair access to essential infrastructure
According to him, the Authority had received submissions from stakeholders on the draft and would consider their views before finalising the regulations
He said: “The proposed regulations are intended to strengthen the midstream and downstream petroleum sector by preventing anti-competitive practices, addressing abuse of dominance, promoting fair and non-discriminatory access to essential infrastructure, and also enhancing transparency and market efficiency”
Umar said effective regulation must provide certainty for investors, support innovation, promote efficient markets and protect the integrity of the petroleum sector
“This is therefore a consultation in the true sense of the word We are here to listen, to learn and improve the draft where necessary,” he said.
The NMDPRA chief also disclosed that the Authority had recently signed a Memorandum of Understanding, MoU, with the Federal Competition and Consumer Protection Commission, FCCPC, to strengthen the regulatory framework for competition in the petroleum sector
He said the mandates of both agencies were complementary, adding that the MoU would help strengthen regulatory coordination
Giving an overview of the proposed regulations, NMDPRA Secretary and Legal Adviser, Dr Joseph Tolorunse, said the draft contained 138 regulations across 23 parts, covering competition issues across the midstream and downstream petroleum value chain
He said the regulations would translate the competition provisions of the PIA into detailed and enforceable rules for the sector
Tolorunse said the objectives included creating a level playing field, preventing monopoly and abuse of dominance, protecting consumers against collusion and market manipulation, guaranteeing open and non-discriminatory access to essential infrastructure and improving transparency of prices, capacity and market information
The regulations would cover pipeline transportation, storage and terminals, wholesale petroleum liquids and gas, retail fuel distribution, petrochemicals and other related commercial activities
Under the proposed rules, owners or controllers of essential infrastructure, including pipelines, storage terminals, jetties, bulk-loading facilities and depots, would be required to provide access to qualified third parties on transparent and non-discriminatory terms
Such access, he said, could only be restricted on legitimate technical, safety and creditworthiness grounds
The proposed regulations would also require operators providing midstream and downstream services to disclose tariffs, fees and general service conditions
Tolorunse said operators would be prohibited from imposing hidden surcharges, offering undisclosed preferential arrangements or entering informal agreements that alter published access conditions
On collusion, he said competing operators would be prohibited from coordinating pump prices, ex-depot prices, margins, discounts, freight charges, supply levels, territories, customer allocation and tender submissions
The regulations would also subject certain petroleum contracts and commercial arrangements to competition scrutiny where they could substantially restrict competition
These include exclusive supply agreements, long-term contracts, take-or-pay arrangements, tying and bundling, loyalty rebates, minimum-volume commitments, resale price maintenance and certain franchise restrictions
On market dominance, Tolorunse clarified that the regulations would not prohibit a company from becoming dominant but would prohibit the abuse of such dominance
He said the draft also contained provisions dealing with vertically integrated operators, affiliates and intra-group transactions, including measures to ensure fair treatment of independent competitors and prevent cross-subsidisation
The proposed framework would further provide for competition reviews of mergers, acquisitions, changes in control and significant joint ventures
According to Tolorunse, the Authority would consider factors including market concentration, barriers to entry, the elimination of actual or potential competitors, vertical foreclosure risks, consumer impact and control of essential facilities
The regulations also contain provisions on digital markets, market data and artificial intelligence-based pricing, reflecting concerns over the potential use of digital platforms and algorithms to facilitate coordinated pricing or discriminatory access
Tolorunse said the proposed framework would give NMDPRA powers covering market monitoring, complaints, investigations, information gathering, interim measures, cease-and-desist orders and corrective remedies
He, however, stressed the need for clarity in the relationship between NMDPRA and FCCPC, particularly regarding concurrent jurisdiction, merger reviews and enforcement
He said this was necessary to prevent jurisdictional conflicts, duplication and regulatory uncertainty
According to him, the proposed regulations would make competition compliance an important consideration for petroleum operators, including in their contracts, pricing policies, infrastructure-access procedures, affiliate transactions, joint ventures, acquisitions and data-sharing arrangements
He said the framework would move petroleum regulation beyond licensing and technical operations to regulating how market power is exercised within the industry
Tolorunse noted that liberalisation under the PIA alone could not guarantee effective competition where an operator controls critical pipelines, terminals, storage capacity, wholesale supply, market information or distribution networks