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NMDPRA Moots 5% Turnover Penalty to Discourage Oil Industry Infractions

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Subsidy Removal: NMDPRA Assures Smooth Fuel Supply

Oil companies operating in Nigeria risk up to five percent of annual operating turnover in penalties on being found guilty of serious anti-competitive practices if a brewing industry regulation sees the light of day.

According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the arm of the government championing this strategy, this would apply to breaches in both the midstream and downstream sectors.

The strategy is contained in the draft regulations of the proposed Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026.

Under the proposed regulations, companies involved in breaches such as price-fixing, bid-rigging, market allocation, abuse of market dominance and other conduct capable of causing significant harm to competition could be fined between three and five percent of their annual turnover.

Persistent or serious offenders may also have their licences suspended or revoked, while the Authority may impose daily penalties on operators that fail to comply with its orders or continue prohibited conduct after being directed to stop.

READ ALSO: OPEC Hails Tinubu’s Reforms, Oil Output on Nigeria’s Economy

The draft regulation states, “Where the Authority determines, after investigation and due process, that a licensee or any other person has engaged in anti-competitive conduct or breached any provision of this Regulation or the Act, it may impose administrative fines as provided herein.”

It further states, “The maximum administrative fine shall not exceed five per cent of the annual turnover of the offending undertaking for the preceding financial year.

“For purposes of these regulations, ‘annual turnover’ means gross revenues or sales derived from the regulated business activities in Nigeria. Where multiple entities or group structures are involved, the Authority may consider the turnover of the group, subsidiary, or segment most directly involved in the infringement.”

The proposed framework classifies competition infringements into three categories, with Category A covering severe offences, Category B moderate offences and Category C minor or technical breaches.

Category A offences attract indicative fines of between three and five per cent of annual turnover. They include cartel agreements involving price-fixing, bid-rigging and market allocation, as well as abuse of dominance with foreclosure effects, such as predatory pricing and refusal to supply an essential facility.

Aggravating factors would include repeat offending, obstructing an investigation, having a large market share or causing significant harm to the market. Mitigating factors include voluntary self-reporting, cooperation beyond legal obligations, early termination of prohibited conduct and an established compliance programme.

Category B offences attract fines of between one and three per cent of annual turnover and include exclusive dealing without clear foreclosure, tying or bundling with minor market harm and unfair discrimination between trading partners.

Category C offences could attract fixed penalties ranging from N5m to N50m or less than one per cent of turnover. These include failure to submit required competition reports, delays in submitting compliance reports and inadvertent data omissions or misstatements.

An operator that fails to comply with a final cease-and-desist order could face a daily penalty of between N5m and N25m until compliance is achieved. The proposed rules provide, “Where a licensee or person fails to comply with an order or directive of the Authority, a daily penalty may be imposed for each day the violation continues.”

Where a prohibited practice continues after a final order, the daily penalty could rise to between N10m and N50m. Before imposing a fine, the NMDPRA would issue a Notice of Intention to Fine setting out the facts and findings, the nature of the infringement, the basis for calculating the proposed fine and the proposed deadline for payment.

The affected operator would have at least 30 days to make written representations or request a hearing.

It states, “Before imposing a fine, the Authority shall issue a Notice of Intention to Fine, specifying: (a) The facts, findings, and nature of the infringement; (b) The basis for the proposed fine, including its calculation; and (c) The proposed deadline for payment. The respondent shall be granted no fewer than 30 days to make written representations or request a hearing.”

The proposed framework also extends accountability to individuals who knowingly participate in serious anti-competitive practices. Directors, managers and officers could face personal sanctions, including referral to the Federal Competition and Consumer Protection Commission (FCCPC) for personal liability under the FCCPC Act.

Persistent or serious violations could also result in the suspension or revocation of an operator’s licence or permit. Operators would generally be required to pay penalties within 30 days of a Final Penalty Order (FPO). The framework preserves the right to appeal, while unpaid fines would constitute debts recoverable by the Authority.

Meanwhile, stakeholders and operators have up to 21 days to submit comments, approval or objection on the proposed regulations, in compliance with Section 216(1) of the Petroleum Industry Act (PIA) 2021, which requires stakeholder consultation before regulations are finalised.

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Ingentia Energies Appoints New MD

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Indigenous oil and gas company, Ingentia Energies Limited, has appointed a former Shell executive, Engr Victor Agbaroji, as its new Managing Director/Chief Executive Officer.

It was gathered that Agbaroji assumed office on 1 September 2026, following the completion of the tenure of the company’s interim managing director, Engr Charles Odita, who led the firm between March and August 2026.

The company disclosed this in a statement on Tuesday, after a leadership transition ceremony held in Lagos.

READ ALSO: Dangote Credits Tinubu’s Economic Reforms with Driving Nigeria’s Economic Recovery

Speaking during the event, Odita said his six-month tenure was productive and expressed confidence in Agbaroji’s ability to accelerate the company’s growth.

“It is my privilege today to hand over the affairs of Ingentia Energies Limited to the incoming managing director, Engr Victor Agbaroji. The company has achieved a lot within the last six months; it is our desire that the new Managing Director will take us to the next level, and I am confident that as an industry veteran, he would hit the ground running and accelerate the company’s growth trajectory,” Odita stated.

In his acceptance remarks, Agbaroji said he would consolidate the gains made under the outgoing management while focusing on safety, talent development, innovation and cost competitiveness.

“Our immediate focus is to consolidate and sustain the gains we have made. Ingentia Energies has set the pace among its peers in growing the company since the acquisition of its licence, and we intend to maintain that momentum, holding in high esteem our company’s greatest assets – people – and taking into recognition the importance of safety, talent development, innovation and cost-competitiveness. IEL will ensure that our people work safely and return home to their loved ones every day. At the same time, we will continue to develop talents, improve efficiency, embrace innovative ways of creating value, and deliver strong returns to our shareholders and stakeholders while affirming our commitment to supporting Nigeria’s energy aspirations, including the national target of increasing crude oil production to 3 million barrels per day,” the new MD said.

According to the statement, Agbaroji brings more than 31 years of experience across the oil and gas value chain to the new position.

He began his professional career as a well-test engineer, gaining experience across several fields before moving to Shell as a reservoir engineer.

During his career at Shell, he held various positions covering operations engineering, corporate petroleum engineering, corporate planning and economics.

The company said he contributed to portfolio optimisation initiatives that supported the emergence of Nigeria’s indigenous marginal field operators.

Agbaroji also served as front-end development manager for major gas projects, including gas supply initiatives for fertiliser production.

At the global level, he was global operations manager for reserves reporting across the Shell Group, overseeing activities spanning Asia, Europe, Australia and North America.

He subsequently moved into Nigeria’s independent oil sector, where he brought international industry practices into indigenous operations.

Before joining Ingentia Energies, Agbaroji led technical advisory, risk management and project delivery support services for emerging energy companies.

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Dangote Credits Tinubu’s Economic Reforms with Driving Nigeria’s Economic Recovery

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President and Chief Executive of Dangote Industries Limited (DIL), Aliko Dangote, has commended the Federal Government for implementing bold and transformative economic reforms repositioning Nigeria for sustainable growth, strengthening investor confidence, and accelerating the country’s economic recovery.

According to Dangote, the ongoing fiscal, monetary, and regulatory reforms have contributed significantly to improving macroeconomic stability, enhancing productivity across key sectors, increasing Nigeria’s attractiveness as an investment destination, and fostering a more resilient business environment. He noted that the positive outcomes emerging from the reform agenda underscore the importance of consistent, market-driven policies in advancing national development and economic prosperity.

“The economic reforms being implemented by the Federal Government are beginning to yield tangible results. We are witnessing improved economic activity, stronger investor confidence, increased industrial productivity, and a more resilient business environment. These measures are laying a solid foundation for sustainable economic growth and long-term prosperity for Nigeria,” Dangote stated

READ ALSO: US-Iran Conflict Sees Oil Exceed $94

He explained that the reforms have created a more enabling operating environment for businesses, particularly large-scale manufacturing and industrial enterprises that are critical to economic diversification, job creation, foreign exchange generation, and national competitiveness. He added that government initiatives aimed at improving efficiency, promoting investment, enhancing transparency, and supporting domestic production are providing a solid framework for industrial expansion.

“We commend the Federal Government for its courage and determination in implementing reforms that are essential for economic transformation. While every reform process comes with initial challenges, the benefits are increasingly evident in stronger economic indicators, improved business confidence, and renewed investor interest in Nigeria,” he said.

Dangote further observed that the government’s favourable policy environment has supported the continued growth and efficient operation of the Dangote Petroleum Refinery and Petrochemicals complex, Africa’s largest integrated refining and petrochemical facility. He noted that policy measures designed to strengthen local refining capacity, reduce import dependence, improve energy security, and encourage value addition have contributed meaningfully to the refinery’s success and Nigeria’s broader economic development objectives.

“The progress being recorded at the Dangote Petroleum Refinery and Petrochemicals complex is closely linked to a policy environment that encourages investment, supports domestic industrialisation, and promotes self-sufficiency. These reforms are helping Nigerian businesses to plan with greater certainty, invest with confidence, and compete effectively on the global stage,” he added.

He stated that the refinery’s increasing production capacity and expanding export footprint are contributing significantly to Nigeria’s economic resurgence by generating foreign exchange earnings, creating employment opportunities, strengthening local supply chains, and positioning the country as a leading energy and manufacturing hub

Reaffirming the Group’s commitment to supporting the Federal Government’s economic agenda, Dangote said Dangote Industries Limited would continue to invest in strategic sectors, drive innovation, promote industrial development, and create sustainable employment opportunities.

“Our vision has always been to support Nigeria’s economic development through transformative investments. Today, we are witnessing how the combination of private-sector commitment and decisive government policies can unlock unprecedented opportunities for national growth. The refinery, petrochemical operations, fertiliser production, and our other industrial investments are helping to build a more self-reliant, competitive, and prosperous economy,” he said.

He expressed confidence that sustained reforms, policy consistency, and stronger collaboration between the public and private sectors would further stimulate economic growth, attract increased foreign direct investment, and reinforce Nigeria’s position as one of Africa’s most attractive investment destinations.

“Nigeria is on the path to becoming one of the world’s leading industrial and economic powers. With continued policy consistency, robust private-sector participation, and investment-led growth, the future of our economy is exceptionally bright,” Dangote concluded.

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Group Credits PINL with Safeguarding Environment, Farms

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A group has given kudos to the Pipeline Infrastructure Nigeria Limited (PINL) for effective pipeline surveillance and community interventions during the recent flooding in parts of the Niger Delta.

The Niger Delta Progressive Alliance (NDPA) in a statement signed by its Convener, Nse Victor Udoh, noted that the PINL’s operational efficiency and sustained maintenance of pipeline corridors helped prevent additional environmental damage, preserve farmlands and protect aquatic ecosystems from threats associated with pipeline failures and oil spills.

According to the NDPA, annual flooding in the Niger Delta poses serious environmental risks, particularly when floodwaters come into contact with damaged pipelines, oil spills and illegal activities around oil and gas infrastructure.

The organisation noted that the recent flood season was different, as there were no reported cases of widespread oil contamination of floodwaters, dead fish or the spread of oil into farms and residential areas attributable to pipeline failures.

READ ALSO: DPRP Decries Rising Fuel Imports, Despite Strong Local Supply Capacity

It said the development underscored the importance of preventive pipeline management, stressing that effective infrastructure protection was often measured by disasters that were prevented rather than emergencies that attracted public attention.

According to the group, regular patrols, monitoring and right-of-way surveillance enabled PINL to identify and address potential threats before they escalated into major incidents.

It added that inspection, maintenance and repair activities had also contributed to maintaining the integrity of critical pipelines, especially during periods of heavy rainfall and flooding.

The NDPA further commended PINL for its interventions in flood-affected communities in Rivers, Bayelsa and Imo States.

It cited the company’s restoration efforts in areas previously affected by illegal refining, as well as empowerment programmes targeting women and youths in host communities.

Udoh said the initiatives showed that corporate social responsibility should go beyond occasional charitable gestures and become part of a sustained commitment to community welfare and development.

“We commend Pipeline Infrastructure Nigeria Limited, therefore, on two counts that this season has made inseparable: the efficiency of its service, tested by a flood and found equal to it, and the seriousness of its social responsibility,” he said.

He added that the group had observed that farms remained protected and waterways retained their ecological value despite the flooding.

“This season, our farms still stand where the water reached them. Our creeks still hold their life,” Udoh said.

The alliance maintained that infrastructure security and community welfare were closely linked in the Niger Delta, where pipelines pass through several communities and environmentally sensitive areas.

It urged PINL to sustain the standard, stressing that protection of critical national infrastructure, environmental preservation and improved host-community welfare should remain mutually reinforcing objectives.

The NDPA described PINL’s performance during the flood season as an example of how operational efficiency and responsible community engagement could combine to protect energy infrastructure and the environment.

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