NMDPRA Proposes 138 Rules to Curb Market Monopolies

Nigeria's Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has proposed 138 regulations aimed at strengthening competition, improving market efficiency and preventing anti-competitive practices in the country's oil and gas industry, the agency's Chief Executive, Rabiu Umar, said at a stakeholder consultation in Abuja on Tuesday.

The proposed regulations, contained in 23 parts, are designed to provide a sector-specific competition framework covering the midstream and downstream segments of the petroleum industry, which include activities such as transportation, storage, refining and retail distribution of petroleum products.

Umar said the rules are intended to prevent anti-competitive practices, address abuse of dominant market positions, and ensure fair, non-discriminatory access to petroleum infrastructure, while also promoting transparency, market efficiency, investment and innovation in the sector.

NMDPRA seeks stakeholder input before finalising rules

Umar said Tuesday's consultation gave stakeholders an opportunity to review the proposed framework and identify provisions requiring clarification, refinement or practical alternatives, ahead of the regulations being finalised.

"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," he said.

He added that the NMDPRA has signed a memorandum of understanding with the Federal Competition and Consumer Protection Commission (FCCPC) to strengthen regulatory coordination and fair market practices in the petroleum sector, describing the mandates of both institutions as complementary.

Rules target infrastructure access and market dominance

NMDPRA Authority Secretary and Legal Adviser to the Board Joseph Tolorunse said the proposed regulations are designed to translate the competition provisions of the Petroleum Industry Act into detailed, enforceable rules.

He added that the framework covers infrastructure access, market dominance, vertical integration, mergers, price and tariff transparency, collusion, digital markets, and investigation and enforcement, and will apply across pipeline transportation, storage and terminals, wholesale petroleum and gas activities, retail fuel distribution, petrochemicals and other related commercial activities.

According to Tolorunse, the rules would guarantee open, non-discriminatory access to essential petroleum infrastructure while improving transparency around prices, capacity and market information.

He stated that the regulations would also address situations where a dominant operator controls essential infrastructure such as pipelines, terminals, storage facilities, supply channels or market information, since licensing alone cannot guarantee effective competition where an operator controls critical infrastructure or other essential market resources.

He also disclosed that the framework would give the NMDPRA stronger powers to intervene in disputes involving market power, infrastructure access, capacity allocation and discriminatory practices.

Tolorunse stressed the need to avoid jurisdictional conflicts or duplication between the NMDPRA and the FCCPC, saying the framework envisages cooperation between the two agencies through information sharing, coordinated or parallel reviews, and alignment of timelines, remedies and compliance requirements.

He urged stakeholders to submit their observations on the proposed regulations, saying their practical experience would help the authority refine the final framework before implementation.