The Federal Government aims to punish oil and gas companies that don’t compete fairly, as they could have to pay a fine of up to 5 per cent of the money they make in a year.
The proposal is contained in a draft Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026. The Nigerian Midstream and Downstream Petroleum Regulatory Authority released this plan (NMDPRA).
Under the proposed rules, companies found guilty of serious offences such as price-fixing, bid-rigging, market allocation and abuse of market dominance could face fines ranging from 3 to 5 per cent of their annual turnover
The plan reveals there are three kinds of violations. Category A is for serious offences, and the fine is the highest. Category B is not as bad, and the fine could be 1 to 3 per cent of the money they make in a year, while Category C is for mistakes like minor or technical breaches, and the fine could be a fixed amount of money like N5m to N50m or less than one per cent of the money they make.
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If oil and gas companies do not listen to orders to stop what they are doing, they could have to pay a fine every day. This fine could be between N5m and N25m. If they still do not listen, the fine could go up to N50m every day.
Before the Nigerian Midstream and Downstream Petroleum Regulatory Authority gives a fine, they will tell the company what they did wrong and how much the fine will be. The company will have at least 30 days to say something or ask for a meeting.
Serious or repeated violations could also lead to the suspension or revocation of operating licences.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority wants people to comment on the plan. They have 21 days to say what they think about the proposed regulations before it been finalised.
