NMDPRA Unveils Anti-Monopoly Rules for Petroleum Sector

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has proposed new anti-monopoly regulations aimed at combating price fixing, market dominance, and other practices that hinder competition in Nigeria's petroleum industry. The draft regulations would prohibit agreements among competing operators to coordinate fuel prices, restrict supplies, or divide customers and territories.

This initiative comes in light of a court ruling that supports continued fuel import licensing for three marketers, which contradicts the Refinery's campaign to limit imports. Mallam Rabiu Umar, NMDPRA Chief Executive, stated that the proposed framework was developed under Section 216 of the Petroleum Industry Act (PIA), 2021.

The draft includes 138 regulations across 23 parts, translating competition provisions of the PIA into enforceable rules. Under these proposals, operators would be barred from coordinating prices and must disclose tariffs and fees.

Access to essential petroleum infrastructure must be provided to qualified third parties on transparent terms, with restrictions only allowed for legitimate technical or safety reasons.