From Victor Osula, Abuja
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has tightened its regulatory grip on petroleum marketers, threatening to revoke the licences of fuel stations caught under-dispensing products to consumers as it moves simultaneously to curb anti-competitive practices across the industry.
The latest measures signal a tougher enforcement posture by the Authority, with retail outlets being placed on notice that inaccurate dispensing of petroleum products will no longer be treated as a minor operational breach.
In an industry circular issued from the headquarters in Abuja, NMDPRA directed operators of retail outlets to immediately calibrate and verify their dispensing equipment and totalisers to ensure that consumers receive the full quantity of petroleum products for which they pay.
The Authority said it had intensified nationwide inspections and enforcement activities to identify outlets involved in under-dispensing or using improperly calibrated equipment.
It warned that operators found violating dispensing standards will be required to take immediate corrective action, while persistent or serious breaches could result in the ultimate sanction of licence revocation.
“Outlets found to be under-dispensing, operating with improperly calibrated equipment, or otherwise compromising dispensing accuracy will be required to take immediate corrective action. Persistent or serious violations will be subject to appropriate sanctions, up to and including revocation of the outlet’s licence, in line with NMDPRA’s regulations”, NMDPRA stated.
The Authority described accurate dispensing as an essential part of protecting consumer confidence and maintaining integrity in petroleum product transactions.
NMDPRA also directed major petroleum industry associations to ensure that their members were fully informed of the new enforcement directive and complied with the requirements.
The associations include the Major Energy Marketers Association of Nigeria (MEMAN), Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN) and Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).
The regulator urged the associations to promptly communicate the directive to their members and support compliance across the downstream petroleum market.
The action against under-dispensing coincides with a wider effort by NMDPRA to strengthen competition and prevent market abuse throughout the midstream and downstream petroleum sectors.
At a Stakeholders’ Consultation Forum in Abuja, the Authority unveiled the draft Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026.
The proposed framework contains 138 regulations divided into 23 parts and is intended to establish detailed, sector-specific competition rules for the petroleum industry.
It seeks to translate the competition provisions contained in Section 216 of the Petroleum Industry Act (PIA) 2021 into enforceable rules governing the behaviour of operators across the petroleum value chain.
Declaring the forum open on behalf of the Authority’s Chief Executive, Rabiu Abdullahi Umar, NMDPRA said it had already received submissions from industry operators and wanted their practical experience to inform the final regulations.
“This is therefore a consultation in the true sense of the word. We are here to listen, learn and improve the draft where necessary”, Umar said.
He urged participants to identify provisions requiring clarification and propose practical alternatives that could make the proposed framework effective without creating unnecessary regulatory burdens.
Giving an overview of the draft regulations, Joseph Tolorunse said the proposed competition code went beyond conventional restrictions on price-fixing and was designed to tackle a wider range of practices capable of undermining competition.
Among the areas covered are access to critical petroleum infrastructure, market dominance, vertical integration, mergers and acquisitions, restrictive commercial arrangements and digital markets.
At the heart of the proposed framework is Regulation 3, which provides a broad prohibition against conduct, agreements or practices that prevent, restrict or distort competition.
Operators controlling critical infrastructure such as pipelines, terminals, jetties and depots would be prohibited from unjustifiably denying qualified third parties access to their facilities.
The proposed rules would also require greater transparency in infrastructure access, including the publication of applicable tariffs and the application of access conditions in a transparent and non-discriminatory manner.
The draft regulations would also prohibit competing operators from coordinating on critical commercial decisions. These include pump prices, margins, freight charges, supply volumes and tender submissions.
The Authority is also proposing scrutiny of restrictive commercial arrangements, including exclusive supply agreements and resale price maintenance arrangements, where such practices have the effect of restricting competition.
Another notable feature of the proposed competition regime is its attention to digital and algorithmic pricing. The inclusion reflects the changing nature of commercial activity and the increasing use of automated systems in pricing and market decisions.
Under the proposed framework, NMDPRA would have powers to monitor petroleum markets, investigate suspected anti-competitive practices and issue cease-and-desist orders where violations are established.
The Authority is also seeking to formalise concurrent jurisdiction with the Federal Competition and Consumer Protection Commission (FCCPC) in relation to merger reviews.
However, Tolorunse acknowledged that the relationship between the two regulatory bodies would have to be carefully defined.
“We must ensure that the final regulation does not inadvertently create jurisdictional conflict, duplication or uncertainty”, he stated.
The Petroleum Industry Act (PIA) 2021 fundamentally restructured Nigeria’s petroleum regulatory architecture and established NMDPRA to regulate the technical and commercial activities of the midstream and downstream petroleum sectors.
The legislation also contains provisions intended to promote competition and prevent practices capable of distorting the petroleum market.
The proposed 2026 competition regulations are therefore intended to provide detailed rules for implementing those statutory provisions across the sector.
The draft is currently undergoing stakeholder consultation, meaning its provisions may still be amended before final approval and implementation.
The separate enforcement directive on dispensing accuracy, however, places an immediate compliance obligation on retail outlets, with NMDPRA directing operators to verify their equipment and warning that persistent or serious breaches could result in the loss of their operating licences.
