An Appraisal of the Competition Law Regime in the Nigerian Petroleum Industry

Abstract

The petroleum industry occupies a central role in Nigeria’s economy, yet for decades it operated within a heavily regulated but competition-deficient environment. This paper critically examines the historical absence of a comprehensive competition framework in the sector, the fragmented legal approaches that preceded reform, and the transformative impact of the Federal Competition and Consumer Protection Act 2018 (FCCPA) alongside the Petroleum Industry Act 2021 (PIA). Employing the doctrinal research methodology, this paper explores how the FCCPA introduced universal competition standards prohibiting restrictive agreements and abuse of dominance, while the PIA provided sector-specific mechanisms promoting market liberalization, transparency, and regulatory accountability. The study also identifies persistent challenges to effective implementation, including regulatory overlaps, infrastructural monopolies, insecurity, and political interference, which threaten to undermine the gains of liberalization. It concludes with recommendations for enhancing competition enforcement, including inter-agency coordination, security reforms, and structural unbundling to promote a competitive and investor-friendly petroleum sector. By bridging gaps in existing literature, this study contributes to understanding the interplay between competition law and market liberalization in Nigeria’s energy industry.