FG moves against monopoly, price-fixing in oil sector

The Nigerian government has introduced proposed regulations aimed at increasing competition and curbing anti-competitive practices within the country's midstream and downstream petroleum sector. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has proposed sweeping rules to address monopoly, fuel price-fixing, market sharing, abuse of dominance, and discriminatory access to critical infrastructure.

The draft regulations, first released for public consultation on August 6, 2026, will also govern the use of pipelines, terminals, storage facilities, pricing information, commercial contracts, and digital platforms by petroleum companies. However, some stakeholders have expressed concerns about the draft, arguing that it could discourage long-term contracts, which are crucial for capital-intensive sectors.

The proposed regulations were released after concerns were raised about alleged coordinated pricing by fuel importers in the downstream market. The NMDPRA's Chief Executive, Rabiu Umar, emphasized that the framework aims to create a more transparent and efficient petroleum market while protecting investors and consumers. The proposed regulations contain 138 regulations across 23 parts, and the NMDPRA is seeking feedback from stakeholders before finalizing the rules.

Brief written by urgent.news from Punch's own syndicated text. Machine-written — may contain errors; check the original before relying on it.