FG moves against monopoly, price-fixing in oil sector

The Nigerian government has taken steps to promote competition and curb monopolistic practices in the country's petroleum sector. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has proposed new regulations aimed at preventing anti-competitive behavior, tackling fuel price fixing, and ensuring fair access to critical infrastructure.

These proposed rules, titled the "Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026," will regulate various aspects of the sector, including the use of pipelines, terminals, storage facilities, pricing information, commercial contracts, and digital platforms.

However, some stakeholders have raised concerns about the draft regulations, arguing that they could discourage long-term contracts in a capital-intensive industry. Critics suggest that short-term agreements might not be suitable for a sector where investors need time to recover their investments. The proposed regulations were initially released for public consultation on August 6, 2026, following the requirement under Section 216(1) of the Petroleum Industry Act 2021.

The consultation was conducted to gather feedback from licensees, permit holders, and other stakeholders before finalizing the regulations.