Petroleum: FCCPC Signs MOU With NMDPRA, Promises To Prevent Consumer Exploitation

To ensure confidence in Nigerian markets and to boost the gains of economy reforms in the nation’s petroleum sector, the Federal Competition and Consumer Protection Commission, FCCPC, has signed a Memorandum of Understanding, MOU, with the Nigerian Mainstream and Downstream Petroleum Regulation
Authority, NMDPR A.

Speaking during the signing ceremony in Abuja, the Executive Vice Chairman of FCCPC, Mr Tunji Bello said the move would further strengthening Institutional cooperation among the two Government’s Agencies.

Mr Tunji Bello who stated that the country’s petroleum sector remains one of the most strategically important sectors of Nigeria’s economy stressed the need for the industry to operate competitively and transparently towards protecting the rights of consumers and encourage investment.

According to the Executive Vice Chairman of FCCPC, the Commission does not regulate or approve petroleum prices in a deregulated downstream market but ensure that market outcomes are driven by consumer choice rather than exploitation.

“Today is particularly significant because it formalises a statutory relationship that has been developing through various levels of collaboration between the two institutions. It is the strengthening of institutional cooperation in the service of Nigerian consumers, enhancing confidence in our markets, and ensuring the gains of economic reform” He said

In his words ” 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 and it is therefore essential that the sector operates efficiently, competitively, and transparently to protect consumers as well as encourage investment’.

“The Petroleum Industry Act 2021 empowers the NMDPRA as the technical and licensing regulator for licensing, technical standards, operational compliance, price setting, and supply oversight of the midstream and downstream petroleum sector and the FCCPC, on the other hand, derives its mandate from the Federal Competition and Consumer Protection Act 2018. Its responsibility is different, but complementary. The Commission is charged with promoting fair competition, preventing anti-competitive conduct, protecting consumers from unfair and exploitative practices, and ensuring that markets work for the benefit of all participants” the FCCPC Boss stressed.

Mr Tunji Bello further said”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 and 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, or any conduct designed to undermine competition, the FCCPC has a clear statutory obligation to investigate and take appropriate action.

“The partnership formalised today will significantly strengthen our collective capacity to achieve these objectives. 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”

“For industry operators, this partnership should be seen as a positive development. Competitive and transparent markets ultimately benefit responsible businesses. Businesses that innovate, invest, comply with regulations, and serve consumers fairly have nothing to fear from effective regulation and for Nigerian consumers, the message is equally clear: your welfare remains at the centre of the FCCPC’s work. Consumers are encouraged to continue reporting suspected violations through the appropriate channels available at both FCCPC and NMDPRA”.

He commended the leadership of NMDPRA for their commitment to deeper institutional collaboration. This Agreement reflects a shared understanding that effective regulation in today’s marketplace requires cooperation, coordination, and a common focus on the national interest.

“Together, the agencies will work to protect consumers, promote fair competition, strengthen confidence in the petroleum sector, and contribute to the sustainable growth of the Nigerian economy.

On his part, the Chief Executive Officer of Nigerian Mainstream and Downstream Petroleum Regulation Authority, Mr Rabiu Umar commended FCCPC’s efforts towards safeguarding the rights of Nigerian consumers and promised to work with the Commission towards realizing its objectives.

“This milestone marks the establishment of a robust cooperation framework between the Nigerian Midstream and Downstream Petroleum Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) to strengthen our shared regulatory mandates, promote competitive markets, protect consumers, and ensure full transparency across Nigeria’s energy value chain” He stated

“I sincerely commend the FCCPC for its steadfast leadership, commitment and proactive collaboration in advancing competition and consumer welfare and both the Petroleum Industry Act 2021 and the Federal Competition and Consumer Protection Act 2018 expressly oblige our two institutions to work together to define, monitor and enforce compliance with the law.

According to him, since 2022, the agencies have constructively engaged on issues of mutual interest. That track record proves that coordinated institutional synergy, rather than regulatory friction or operational duplication, delivers the most effective results for our economy.

In his words “Today, we translate that statutory mandate into an actionable operational framework and importantly, our focus on consumer and market protection extends across the entire landscape—from refining and processing, whether liquid fuels or gas, to transportation, bulk storage, wholesale distribution and retail prices at the pumps.

“In an evolving regulated market structure, regulation must never be interpreted as the absence of oversight. We are committed to safeguarding the entire ecosystem against exploitative practices, ensuring accurate product monitoring, maintaining uncompromised fuel quality, and enforcing zero tolerance for collusive pricing, product withholding or anti-competitive market allocation and moving beyond high-level statutory provisions, this partnership establishes clear operational guidelines for market surveillance, information sharing, joint investigations and consumer grievance resolution.

Mr Umar explained that the collaboration is anchored directly on the Authority’s operational mantra of being fair, fast and firm adding that the two Agencies must be fast in investigating market distortions and resolving complaints.

“We must be fair in maintaining a transparent and competitive playing field for all operators and we must be firm in enforcing compliance to preserve market integrity.