By Stella Odueme
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has proposed a 138-rule competition framework to check monopoly, market dominance, collusion and discriminatory access to critical infrastructure in Nigeria’s petroleum industry.
The proposed framework, divided into 23 parts, is the first sector-specific competition regulation being developed for the midstream and downstream petroleum sectors.
It covers major areas of the industry, including pipelines, terminals, storage facilities, wholesale and retail markets, petrochemicals, digital markets, mergers and access to essential infrastructure.
Speaking at a stakeholders’ consultation on the proposed regulations in Abuja, NMDPRA Chief Executive, Rabiu Umar, said the framework was aimed at establishing clear and enforceable rules that would promote fair competition, transparency and equal market access.
Umar said the regulations would also provide a more predictable business environment and help strengthen investor confidence in the petroleum sector.
He explained that the consultation was convened to obtain further input from industry stakeholders and identify areas of the draft that required clarification or modification before final approval.
According to him, the proposed rules are designed to address practices capable of undermining competition, particularly abuse of market dominance, collusion and discriminatory access to petroleum infrastructure.
He added that the framework was being developed in line with the provisions of the Petroleum Industry Act (PIA) 2021.
Also speaking, NMDPRA Legal Secretary, Dr. Joseph Tolorunse, said the proposed regulations would broaden the Authority’s oversight of the petroleum market beyond technical and licensing functions.
Tolorunse said the framework would introduce provisions on price and tariff transparency, regulation of vertically integrated operators, investigation of anti-competitive conduct and enforcement of competition rules.
He said it would also provide for collaboration with the Federal Competition and Consumer Protection Commission (FCCPC) in reviewing major transactions.
The Legal Secretary noted that open and non-discriminatory access to essential petroleum infrastructure was central to the framework, alongside measures to prevent market manipulation and other practices that could restrict competition.
Umar further disclosed that NMDPRA had recently entered into a Memorandum of Understanding with the FCCPC to strengthen cooperation on competition and consumer protection in the petroleum industry.
He said the partnership would enable both agencies to coordinate their complementary regulatory responsibilities and promote fair market practices across the sector.
NMDPRA said the contributions received from stakeholders during the consultation would be reviewed and incorporated where appropriate before the proposed regulations are finalised.
The framework, once concluded, is expected to provide clearer competition rules for operators and strengthen transparency and access across Nigeria’s midstream and downstream petroleum markets.