The Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), is proposing sweeping new regulations aimed at preventing anti-competitive practices in Nigeria’s midstream and downstream petroleum sector.
Under the proposed Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026, petroleum companies would be prohibited from jointly fixing fuel prices, restricting product supplies, dividing markets or coordinating major commercial decisions.
The proposed rules are designed to promote fair competition among refiners, marketers and other petroleum industry operators, while protecting consumers from practices that could artificially drive up prices or create shortages.
Among the practices targeted are fuel price-fixing, artificial scarcity, bid-rigging, customer allocation, exclusive supply arrangements and the sharing of commercially sensitive information between competitors.
The regulations would also require operators to independently determine their prices and service terms, rather than entering into agreements that create artificial uniformity in pump prices or divide customers and markets among competing businesses.
A major focus of the proposed rules is resale price maintenance, which involves arrangements that restrict how products can be priced when resold. The government says such practices could substantially reduce competition within the petroleum sector.
If implemented, the regulations would represent a significant step towards strengthening competition in Nigeria's fuel market and preventing petroleum businesses from engaging in coordinated practices that could disadvantage consumers and other market participants.
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