The Federal Government is moving to strengthen competition in Nigeria’s midstream and downstream petroleum sector through proposed regulations targeting monopoly, price fixing, market sharing and other anti-competitive practices.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is seeking to introduce the Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026, which would establish detailed rules governing competition across the sector.

The proposed framework covers areas including petroleum pricing, access to pipelines and terminals, storage facilities, commercial contracts, digital platforms, market dominance and the exchange of commercially sensitive information.

The regulations were first released for public consultation on August 6, 2026, with the NMDPRA inviting licensees, permit holders and other stakeholders to submit their views within 21 days. The consultation is being conducted pursuant to Section 216(1) of the Petroleum Industry Act 2021.

Speaking at a stakeholders’ consultation forum in Abuja on Tuesday, NMDPRA Chief Executive, Rabiu Umar, said the proposed rules were intended to promote a more transparent and efficient petroleum market while protecting consumers and investors.

He said the framework would prevent anti-competitive practices, address abuse of dominance and promote fair and non-discriminatory access to essential infrastructure.

According to the NMDPRA Legal Adviser, Joseph Tolorunse, the draft contains 138 regulations divided into 23 parts.

He said the proposed rules go beyond conventional price-fixing restrictions to cover infrastructure access, dominant firms, vertical integration, mergers, digital markets, enforcement, penalties, compliance and coordination between regulatory agencies.

Under the proposed regulations, petroleum companies would be prohibited from coordinating pump prices, ex-depot prices, margins, discounts, freight charges, supply levels, territories, customers and tender submissions.

The draft also seeks to address informal or tacit agreements between companies, meaning regulatory scrutiny could apply even where anti-competitive conduct is not contained in a formal written agreement.

Owners and operators of essential infrastructure, including pipelines, storage terminals, jetties, bulk-loading facilities and depots, would also be prohibited from unjustifiably denying or delaying access to qualified third parties.

Such access would be required to be transparent and non-discriminatory, based on legitimate considerations such as technical requirements, safety and creditworthiness.

Operators would also be required to publish tariffs, fees and general service conditions, while hidden charges, secret discounts and undisclosed preferential arrangements would be prohibited.

The proposed framework would further scrutinise exclusive supply agreements, long-term contracts, take-or-pay arrangements, tying and bundling, loyalty rebates, minimum-volume commitments, resale price maintenance and franchise restrictions where they could substantially restrict competition.

Tolorunse said dominance itself would not constitute a violation, but the abuse of a dominant market position would be subject to regulation.

The proposed rules also provide for competition reviews of mergers, acquisitions, changes in control and significant joint ventures, with considerations including market concentration, barriers to entry, foreclosure risks, control of essential infrastructure and effects on consumers and innovation.

Another area covered by the draft is digital markets, including data and algorithmic pricing. The framework would address dominant digital platforms, artificial intelligence-based pricing, commercially sensitive information and consumer data.

The move comes amid renewed concerns over competition and pricing in the downstream petroleum market. In August, the NMDPRA opened its consultation on the proposed regulations, highlighting concerns including price fixing, market allocation, bid rigging, coordinated supply restrictions, price signalling and the exchange of commercially sensitive information.

Umar also disclosed that the NMDPRA had signed a Memorandum of Understanding with the Federal Competition and Consumer Protection Commission to strengthen cooperation between both agencies.

He said the two regulators have complementary mandates and would work together on information sharing, market intelligence and coordinated enforcement in the petroleum sector.

The proposed regulations would therefore introduce a more detailed competition framework for Nigeria’s midstream and downstream petroleum industry, covering pricing, infrastructure access, contracts, mergers, joint ventures and commercial information.

Stakeholders are expected to submit their views on the draft before the NMDPRA finalises the regulations.