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 designed to provide a sector-specific competition framework covering the midstream and downstream segments of the petroleum industry.
The Authority Chief Executive, NMDPRA, Rabiu Umar, disclosed this at a stakeholder consultation on the proposed regulations.
Umar said the rules were intended to prevent anti-competitive practices, address abuse of dominance and ensure fair and non-discriminatory access to petroleum infrastructure.
He said the regulations would also promote transparency, market efficiency, investment and innovation in the sector.
According to him, the consultation was an opportunity for stakeholders to review the proposed framework and identify provisions that required clarification, refinement or practical alternatives.
He said, “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 added that the Authority had recently 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.
He explained that the mandates of both institutions were complementary, stressing that the partnership would help strengthen the regulatory environment for the midstream and downstream petroleum industry.
Also speaking, the Authority Secretary and Legal Adviser to the Board, Dr Joseph Tolorunse, said the proposed regulations were designed to translate the competition provisions of the Petroleum Industry Act (PIA) into detailed and enforceable rules for the petroleum sector.
Tolorunse said the regulations covered issues including infrastructure access, market dominance, vertical integration, mergers, price and tariff transparency, collusion, digital markets, investigation and enforcement.
He said the framework would apply to transportation through pipelines, storage and terminals, wholesale petroleum and gas activities, retail fuel distribution, petrochemicals and other related commercial activities.
According to him, the proposed rules would guarantee open and non-discriminatory access to essential petroleum infrastructure while improving transparency around prices, capacity and market information.
He said the regulations would also address situations where a dominant operator controls essential infrastructure such as pipelines, terminals, storage facilities, supply channels or market information.
Tolorunse said the framework was particularly important because licensing alone could not guarantee effective competition where an operator controlled critical infrastructure or other essential market resources.
He said the regulations would therefore provide the Authority with a stronger framework to intervene in issues involving market power, infrastructure access, capacity allocation and discriminatory practices.
However, he stressed the need to ensure that the proposed regulations did not create jurisdictional conflicts or duplication between the NMDPRA and FCCPC.
He said the framework envisaged cooperation between both institutions through information sharing, coordinated or parallel reviews, alignment of timelines, remedies and compliance requirements.
Tolorunse urged stakeholders to submit their observations on the proposed regulations, saying their practical experience would help the Authority improve the final framework before its implementation.
