Nigerian government proposes 5% turnover fines for oil companies engaging in anti-competitive practices

The draft regulations, titled the Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026, outline penalties for offenses such as price-fixing, bid-rigging, market allocation, and abuse of market dominance. Serious offenders could face fines between three and five percent of their annual turnover, with persistent violations potentially leading to license suspension or revocation. The framework categorizes infringements into three levels: Category A for severe offenses 3-5% turnover fine, Category B for moderate offenses 1-3% turnover fine, and Category C for minor breaches fixed penalties from N5m to N50m or less than 1% turnover.

Daily penalties ranging from N5m to N50m may also be imposed for non-compliance with orders. Individuals, including directors and managers, who knowingly participate in serious anti-competitive practices could face personal sanctions. Operators will have 30 days to pay fines after a Final Penalty Order, and the framework includes provisions for appeal.

Stakeholders have 21 days to submit comments on the proposed regulations.