FCCPC, NMDPRA Move To Check Price Fixing, Market Abuse In Oil Sector

The Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) have partnered to tackle price fixing, cartel activities, market abuse and other anti-competitive practices in Nigeria’s petroleum sector.

The two agencies formalised the partnership in Abuja through a collaborative agreement aimed at strengthening information sharing, market intelligence and coordinated enforcement in the midstream and downstream petroleum sector.

Speaking at the signing ceremony, the executive vice chairman of the FCCPC , Tunji Bello, said the partnership would help ensure that the petroleum market remained competitive and transparent while protecting consumers from exploitative practices.

He said the petroleum sector remained strategically important to the Nigerian economy because developments in the industry directly affected transportation, food prices, manufacturing and the daily lives of Nigerians.

According to him, the Petroleum Industry Act 2021 empowers the NMDPRA to regulate licensing, technical standards, operational compliance, price setting and supply oversight in the midstream and downstream petroleum sector.

He explained that the FCCPC, under the Federal Competition and Consumer Protection Act 2018, had a complementary responsibility to promote fair competition, prevent anti-competitive conduct and protect consumers from unfair and exploitative practices.

The FCCPC stressed that the commission does not regulate or approve petroleum prices in the deregulated downstream market.

He said its responsibility was to ensure that market outcomes were driven by fair competition rather than collusion, innovation rather than dominance, and consumer choice rather than exploitation.

He warned that the commission would investigate and take appropriate action where there was evidence of cartel behaviour, price fixing, abuse of dominance, restrictive agreements, market allocation, misleading pricing, under-dispensing, adulteration or other practices capable of undermining competition and harming consumers.

He said the new agreement would strengthen the capacity of both agencies to identify and respond to such practices by improving cooperation and the flow of relevant market information.

“FCCPC and NMDPRA will deepen information sharing, enhance market intelligence, coordinate enforcement activities, and establish clear mechanisms for collaboration on matters that intersect our respective mandates,” he said.

The FCCPC executive vice chairman said the partnership should be viewed positively by petroleum industry operators, noting that businesses that complied with regulations, invested and competed fairly would benefit from a more transparent and competitive market.

He assured consumers that their welfare remained central to the commission’s activities, urging them to continue reporting suspected violations through the appropriate channels provided by the FCCPC and NMDPRA.

He also commended the NMDPRA leadership for its commitment to deeper institutional cooperation, saying effective regulation in the modern petroleum market required coordination between agencies with complementary mandates.

He said the two agencies would work together to protect consumers, promote fair competition, strengthen confidence in the petroleum sector and support sustainable economic growth.