FG plans strict fines for oil firms over anti-competitive practices
The Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority, is proposing new regulations to curb anti-competitive practices in the oil sector. The draft rules outline fines of up to five per cent of annual turnover for companies found guilty of serious offences. The framework classifies offences into three categories, with varying penalties based on the severity of the violation. Directors and managers could also face personal sanctions for their involvement.
TLDR
- The new draft regulations target anti-competitive practices like price-fixing, bid-rigging, and abuse of market dominance.
- Offending companies could face fines of up to five per cent of their annual turnover, with more severe penalties for repeat or serious offenders.
- Penalties are divided into three categories: severe, moderate, and minor, each with specific fines and sanctions.
- Individuals such as directors and managers involved in serious breaches may face personal liability and sanctions.
- Operators and stakeholders have 21 days to submit comments or objections on the proposed regulations before they are finalised.
