The Federal Government has moved to strengthen competition in Nigeria’s midstream and downstream petroleum sector, with the Nigerian Midstream and Downstream Petroleum Regulatory Authority proposing sweeping rules to curb monopoly, tackle fuel price fixing, market sharing, abuse of dominance and discriminatory access to critical infrastructure.

The proposed Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026, will also regulate how petroleum companies use pipelines, terminals, storage facilities, pricing information, commercial contracts and digital platforms.

However, some stakeholders raised concerns about the draft, arguing that it could discourage long-term contracts. They said short-term agreements may not be suitable for a capital-intensive sector where investors need sufficient time to recover their investments.

The proposed regulations were first formally released for public consultation on August 6, 2026, when the NMDPRA issued a public notice inviting licensees, permit holders and other stakeholders to submit comments within 21 days.

The consultation was undertaken pursuant to Section 216(1) of the Petroleum Industry Act 2021, which requires the Authority to consult stakeholders before finalising its regulations.

The notice came shortly after concerns were raised in the downstream petroleum market over alleged coordinated pricing by some fuel importers.

In its report on the proposed rules, PUNCH Online reported that independent marketers had in July alleged that some major fuel importers were selling imported Premium Motor Spirit at coordinated prices above those of the Dangote Petroleum Refinery.

Speaking on Tuesday at a stakeholders’ consultation forum on the proposed regulations in Abuja, the NMDPRA Chief Executive, Rabiu Umar, said the framework was designed to create a more transparent and efficient petroleum market while protecting investors and consumers.

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 in essential infrastructure, and also enhancing transparency and market efficiency.

“In furtherance of this, the Authority has received several submissions from its stakeholders regarding the proposed regulations, which will be reviewed today. Today’s consultation is an opportunity for the Authority to engage with industry stakeholders and benefit from your practical experience.

“We particularly welcome your views on the clarity, practicality, and likely impact of the proposed regulations. We encourage participants to identify specific provisions that may require clarification or refinement and, where appropriate, suggest practical alternatives that can achieve the intended regulatory objectives.”

The proposed framework contains 138 regulations across 23 parts, according to the NMDPRA Legal Adviser, Joseph Tolorunse, who gave an overview of the draft at the forum.

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

He said, “The Midstream and Downstream Petroleum Prevention of Anticompetitive Practices and Behaviour Regulations, 2026 is a competition-law framework for Nigeria’s midstream and downstream petroleum industry. It contains 138 Regulations across 23 Parts, dealing not merely with price fixing, but also infrastructure access, dominance, vertical integration, mergers, digital markets, enforcement, penalties, compliance and inter-agency coordination.

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

Under the proposed rules, 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 targets informal or tacit agreements, meaning companies could face regulatory scrutiny even where anti-competitive conduct is not contained in a formal written agreement.

The regulations would also prohibit owners or controllers of essential infrastructure, including pipelines, storage terminals, jetties, bulk-loading facilities and depots, from unjustifiably denying or delaying access to qualified third parties.

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

The draft further requires operators to publish tariffs, fees and general service conditions while prohibiting hidden charges, secret discounts, undisclosed preferential arrangements and informal agreements that alter published access conditions.

The proposed rules come against the backdrop of renewed concerns over competition and pricing in the downstream petroleum market. In August, the NMDPRA opened a 21-day consultation on the draft, specifically highlighting concerns around price fixing, market allocation, bid rigging, coordinated supply restrictions, price signalling and the exchange of commercially sensitive information.

The PIA already provides the statutory foundation for competition regulation in the midstream and downstream sector. It empowers the NMDPRA to consider whether conduct substantially lessens competition, facilitates discriminatory practices, restricts market entry or amounts to abuse of market power.

The new regulations would build a more detailed sector-specific competition regime around those provisions.

Tolorunse said the framework would also 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 such arrangements could substantially reduce competition.

He added that dominance itself would not be prohibited, but its abuse would.

The proposed regulations also provide for competition review of mergers, acquisitions, changes in control and significant joint ventures, with the NMDPRA considering issues such as market concentration, barriers to entry, foreclosure risks, control of essential infrastructure and effects on consumers and innovation.

Another notable provision is the regulation of digital markets, data and algorithmic pricing. Tolorunse said the framework would address dominant digital platforms, artificial intelligence-based pricing, competitively sensitive information and consumer data.

The NMDPRA is also seeking closer coordination with the Federal Competition and Consumer Protection Commission.

Umar said, “A few weeks ago we signed an MOU, a Memorandum of Understanding, with the FCCPC, which by law is also empowered to ensure that there is fair market practices in the country and in the sector. Our mandates are not necessarily conflicting.

“Our mandates are complementary. And as a result of that, we have signed an MOU with the FCCPC to make sure that we strengthen the regulatory environment as regards to the petroleum midstream and downstream sector in the country.”

The two agencies signed the agreement on September 10 to strengthen information sharing, market intelligence and coordinated enforcement in the petroleum sector.

The proposed regulations therefore represent a shift from mainly technical and licensing oversight towards closer regulation of how market power is exercised.

If finalised, petroleum companies would need to consider competition compliance in pricing, infrastructure access, contracts, affiliate transactions, mergers, joint ventures and commercial data-sharing arrangements.