Nigerian consumers and businesses in the petroleum sector are set to receive stronger protection against price fixing, cartel behaviour, product withholding, under-dispensing and other practices that distort competition, as the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) deepen regulatory cooperation.
The partnership, formalised through a collaborative agreement between the two agencies, is expected to strengthen market surveillance, information sharing, investigations and enforcement across Nigeria’s deregulated petroleum market.
Tunji Bello, Executive Vice Chairman of the FCCPC, speaking at the signing of the Memorandum of Understanding in Abuja said the agreement would help ensure that petroleum market outcomes are determined by fair competition and consumer choice rather than collusion or exploitation.
“The petroleum sector remains one of the most strategically important sectors of our economy. It affects transportation, food prices, manufacturing, and ultimately the daily lives of millions of Nigerians,” Bello said.
He said effective competition and transparency in the sector were therefore critical not only to consumer welfare but also to investment and the broader Nigerian economy.
Bello stressed that the FCCPC does not regulate or approve petroleum prices in a deregulated downstream market, but has a clear mandate to intervene where market conduct undermines competition or harms consumers.
“As the FCCPC has consistently stated, it does not regulate or approve petroleum prices in a deregulated downstream market.
“It ensures that market outcomes are driven by fair competition rather than collusion; by innovation rather than dominance; and by consumer choice rather than exploitation,” he said
The FCCPC boss said the Commission would investigate and take appropriate action where there is evidence of cartel behaviour, price fixing, abuse of dominance, restrictive agreements, market allocation, misleading pricing, under-dispensing, adulteration or other harmful conduct designed to undermine competition.
He said the agreement would significantly enhance the capacity of both agencies to detect and respond to such practices through deeper information sharing and coordinated enforcement.
“FCCPC and NMDPRA will deepen information sharing, enhance market intelligence, coordinate enforcement activities, and establish clear mechanisms for collaboration on matters that intersect our respective mandates,” Bello said.
For consumers, Bello said the message was clear: their welfare remained central to the FCCPC’s work, urging members of the public to report suspected violations through the appropriate channels of both agencies.
He also said the agreement should provide greater certainty for legitimate industry operators, noting that businesses that compete fairly and comply with regulations would benefit from a more transparent market.
“Competitive and transparent markets ultimately benefit responsible businesses,” he said.
Rabiu Abdullahi Umar, Chief Executive of NMDPRA, said the partnership would strengthen oversight across the petroleum value chain, from refining, processing and transportation to bulk storage, wholesale distribution and retail operations.
Umar said the Petroleum Industry Act (PIA) 2021 and the Federal Competition and Consumer Protection Act (FCCPA) 2018 provide the statutory basis for cooperation between the two institutions.
He noted that the agencies had been engaging on issues of mutual interest since 2022, adding that the agreement would convert that relationship into a more structured operational framework.
“Today, we translate that statutory mandate into an actionable operational framework,” Umar said.
He said the agencies would maintain zero tolerance for exploitative practices, collusive pricing, product withholding and anti-competitive market allocation, while also focusing on accurate product metering and fuel quality.
According to Umar, the agreement establishes clearer procedures for market surveillance, incident reporting, joint investigations and consumer grievance resolution.
“By synchronizing our information-sharing mechanisms and setting explicit benchmarks for inquiry and enforcement, we provide industry operators with regulatory certainty while eliminating jurisdictional overlap,” he said.
Umar said the collaboration would be driven by NMDPRA’s “Fast, Fair and Firm” approach, with the agencies expected to respond quickly to market distortions and complaints, maintain a level playing field and enforce compliance where violations occur.
The partnership comes as Nigeria’s downstream petroleum market continues to adjust to deregulation, with competition and consumer protection becoming increasingly important as market forces play a greater role in petroleum pricing and distribution.
The agencies said the collaboration would help strengthen market integrity, protect consumers from exploitative practices, promote fair competition and ultimately contribute to greater confidence and efficiency in Nigeria’s petroleum sector.
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