FCCPC, NMDPRA to check price fixing in oil sector

The Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) have entered into an agreement aimed at combating cartel behaviour, price fixing, and other anti-competitive practices in Nigeria's petroleum sector. Tunji Bello, the Executive Vice Chairman of the FCCPC, announced the signing of the collaborative agreement during a ceremony in Abuja.

Bello emphasized that the collaboration would reinforce institutional cooperation, bolster consumer protection, and engender trust in the petroleum market. Nigeria's petroleum sector plays a pivotal role in the national economy, impacting transportation, food prices, manufacturing, and the daily lives of millions of Nigerians. He underscored the critical importance of an efficient, competitive, and transparent sector to safeguard consumers and attract investment.

The Petroleum Industry Act 2021 grants the NMDPRA the authority as the regulatory body responsible for licensing, technical standards, operational compliance, price determination, and supply oversight in the midstream and downstream petroleum industry. Bello cautioned that the FCCPC would scrutinize and take appropriate action against any evidence of cartel formation, price collusion, abuse of market power, restrictive practices, allocation of markets, deceptive pricing, inadequate supply, adulteration, or any other conduct that could undermine competition.

Rabiu Umar, the Chief Executive of the NMDPRA, welcomed the agreement as the creation of a strong partnership between the two regulatory bodies. Umar highlighted that the framework would bolster their joint regulatory responsibilities, foster competitive markets, shield consumers, and ensure transparency throughout Nigeria's energy sector.