The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has proposed 138 regulations aimed at strengthening competition, improving market efficiency and curbing anti-competitive practices in Nigeria’s petroleum industry.
The proposed regulations, contained in 23 parts, are expected to establish a sector-specific competition framework for the midstream and downstream segments of the petroleum industry.
The Authority Chief Executive, Rabiu Umar, disclosed this during a stakeholder consultation on the proposed regulations.
Umar said the framework was designed to prevent anti-competitive practices, address abuse of market dominance and ensure fair and non-discriminatory access to petroleum infrastructure.
He added that the regulations would promote transparency, investment, innovation and efficiency across the sector.
According to him, the consultation provided an opportunity for industry stakeholders to examine the proposed rules and make recommendations on provisions requiring clarification, refinement or practical adjustments.
“The Authority recognises that effective regulation must provide regulatory certainty, support investment and innovation, promote efficient markets and protect the integrity of the petroleum sector,” Umar said.
He disclosed that NMDPRA had recently signed a Memorandum of Understanding with the Federal Competition and Consumer Protection Commission (FCCPC) to strengthen regulatory coordination and promote fair market practices in the petroleum industry.
Umar said the mandates of both agencies were complementary, adding that their collaboration would help create a stronger regulatory environment for the midstream and downstream sectors.
Also speaking, the Authority Secretary and Legal Adviser to the Board, Dr Joseph Tolorunse, said the proposed regulations were intended to translate the competition provisions of the Petroleum Industry Act (PIA) into detailed and enforceable rules.
He said the framework covered areas including infrastructure access, market dominance, vertical integration, mergers, price and tariff transparency, collusion, digital markets, investigation and enforcement.
Tolorunse said the regulations would apply to pipeline transportation, storage and terminals, wholesale petroleum and gas activities, retail fuel distribution, petrochemicals and other related commercial operations.
He explained that the proposed framework would guarantee open and non-discriminatory access to critical petroleum infrastructure while improving transparency around prices, available capacity and market information.
According to him, the rules would also address situations where dominant operators control essential infrastructure such as pipelines, terminals, storage facilities, supply channels or critical market information.
Tolorunse noted that licensing alone could not guarantee effective competition where an operator controlled critical infrastructure or other essential market resources.
He said the proposed regulations would therefore provide NMDPRA with a stronger basis to intervene in matters involving market power, infrastructure access, capacity allocation and discriminatory practices.
However, he stressed the importance of avoiding jurisdictional conflicts or duplication between NMDPRA and FCCPC.
Tolorunse said the proposed framework envisaged cooperation between both agencies through information sharing, coordinated or parallel reviews, harmonised timelines, remedies and compliance requirements.
He urged stakeholders to submit their observations and recommendations, stressing that their practical experience would assist the Authority in refining the regulations before their final implementation.
