The Federal Government has proposed fines of up to five per cent of annual turnover for petroleum companies found guilty of serious anti-competitive practices in Nigeria’s midstream and downstream sectors.

The proposed penalties are contained in the draft Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026, prepared by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Under the proposed rules, companies involved in practices such as price-fixing, bid-rigging, market allocation and abuse of market dominance could be fined between three and five per cent of their annual turnover.

Moderate violations could attract fines of one to three per cent, while minor or technical breaches may result in penalties ranging from N5m to N50m or less than one per cent of turnover.

The NMDPRA may also impose daily penalties on operators that fail to comply with its directives. Companies that disregard a final cease-and-desist order could face fines of between N5m and N25m per day, while continued prohibited conduct could attract N10m to N50m daily.

Persistent or serious violations may also lead to the suspension or revocation of an operator’s licence or permit.

Before imposing any fine, the regulator would issue a notice outlining the alleged offence, the basis for the proposed penalty and the payment deadline. The affected company would have at least 30 days to respond or request a hearing.

The proposed regulations also provide for sanctions against directors, managers and other officers who knowingly participate in serious anti-competitive practices.

Meanwhile, stakeholders and petroleum operators have 21 days to submit comments, objections or approval of the draft regulations before they are finalised.