Nigeria Proposes 5% Turnover Fines for Oil Companies

The Federal Government of Nigeria, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority, is proposing fines of up to five percent of the annual turnover for petroleum operators found guilty of serious anti-competitive practices. This proposal is detailed in the draft regulations of the Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026.

Companies involved in serious offences such as price-fixing, bid-rigging, and abuse of market dominance could face fines ranging from three to five percent of their annual turnover. Persistent offenders may have their licenses suspended or revoked, and daily penalties could be imposed for non-compliance.

The proposed framework categorizes competition infringements into three categories: Category A for severe offences (fines of three to five percent), Category B for moderate offences (fines of one to three percent), and Category C for minor breaches (fixed penalties ranging from N5 million to N50 million or less than one percent of turnover).