NMDPRA Moves Against Market Abuse, Introduces Competition Rules for Midstream, Downstream Operators

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has opened a stakeholder consultation on its draft Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations 2026, saying the rules are meant to curb monopoly, price-fixing and market manipulation in the petroleum value chain.

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At the event in Abuja on Tuesday, the chief executive of NMDPRA, Rabiu Abdullahi Umar, said the proposed regulations are designed to prevent anti-competitive conduct, address abuse of dominant market positions, guarantee fair and non-discriminatory access to essential infrastructure such as pipelines, depots and terminals, and improve transparency and market efficiency.

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He disclosed that the authority had already received several submissions from stakeholders on the draft and described the consultation as “a true engagement” aimed at refining the regulation based on industry input.

“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,” Umar said.

Umar also revealed that NMDPRA had, a few weeks earlier, signed a Memorandum of Understanding (MoU) with the Federal Competition and Consumer Protection Commission (FCCPC) to strengthen regulatory coordination in the sector.

He stressed that the mandates of both agencies were complementary rather than competing, and that the MoU was intended to create a fairer market for practices in the petroleum midstream and downstream space.

“Our mandates are not necessarily competitive. Our mandates are complementary. And as a result of that, we have signed an MoU with FCCPC to make sure that we strengthen the regulatory environment as regards the petroleum midstream and downstream sector in the country,” he said.

Umar said NMDPRA would take stakeholders’ comments into account in finalising the regulation, with unresolved issues to be reviewed internally before a final draft is produced.

“We particularly welcome your views on the clarity, practicalities, and the likely impact of the proposed regulations,” he said, encouraging participants to identify specific provisions that may require adjustment and to suggest practical alternatives that could achieve the intended regulatory objectives.

The authority said effective regulation must provide regulatory certainty, support investment and innovation, promote efficient markets and protect the integrity of the petroleum sector.

Giving an overview of the draft on behalf of the NMDPRA chief executive and management, Authority’s secretary and legal adviser, Dr Joseph Tolunrunse, said the document contains 138 regulations spread across 23 parts.

He said the draft covers pricing conduct, infrastructural assets, dominance and vertical integration, mergers and changes of control, digital markets and data (including AI-related issues), enforcement, compliance and inter-agency coordination.

“The central purpose of the regulation is to translate the competition provisions of the Petroleum Industry Act 2021 into detailed, enforceable rules for the midstream and downstream petroleum industry,” Tolunrunse said.

According to him, the regulation’s objectives include: Creating a level playing field in the sector; Preventing monopoly and abuse of dominant positions; Protecting consumers from market manipulation and anti-competitive behaviour; Guaranteeing open, non-discriminatory access to essential infrastructure (pipelines, depots, terminals, storage); Improving transparency of prices, capacity and market information; Attracting investment by providing regulatory certainty; and Aligning Nigeria’s petroleum competition regime with international best practice

He said the rules would apply to licensees, their affiliates and other persons engaged in commercial activities in the sector, including industry associations where their activities could affect competition.

The draft specifically addresses:

General prohibitions against anti-competitive conduct; Open access to pipelines, depots, terminals and other essential facilities; Transparency in pipeline and terminal operations; Collusion and coordination between competitors; The reach of regulation into petroleum contracts; Dominance and vertically integrated operators; Mergers, changes of control and joint ventures; Digital markets, data and AI-related competition issues; and Participation, enforcement powers and remedies

Tolunrunse described the draft as a shift in NMDPRA’s approach—from mainly licensing and technical oversight to actively regulating how market power is exercised in the sector.

He said liberalisation alone could not guarantee a genuinely competitive petroleum market if access to pipelines, terminals, storage capacity and market information remained concentrated in the hands of a few players.

“This regulation, therefore, attempts to address the economic architecture of the market: who gets assets, on what terms, at what price, with what information, and subject to what competitive safeguards,” he said.