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NMDPRA launches fresh push for a transparent West African fuel price benchmark, arguing that Africa must end its dependence on petroleum price references set outside the continent.
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Nigeria says growing refining capacity across West Africa has created the right conditions for a regional pricing index that reflects local market realities and supports cross-border trade.
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Abuja conference will seek investment in pipelines, storage facilities, ports, refineries, and digital trading infrastructure to strengthen the region’s downstream petroleum market.
July 30, (THEWILL) — The regulator says harmonised fuel standards, reliable market data, and stronger regional collaboration will improve energy security, lower logistics costs and accelerate petroleum products exports across the West
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has stepped up efforts to establish a transparent regional pricing benchmark for refined petroleum products in West Africa.
It declared that the region can no longer afford to depend on fuel price references determined outside the continent despite its vast hydrocarbon resources and rapidly expanding refining capacity.
The Authority said the initiative forms part of a broader strategy to position West Africa as a competitive petroleum trading hub, strengthen regional energy security, attract investment into critical downstream infrastructure, and create a pricing mechanism that reflects the realities of African markets rather than external indices.
Speaking on Thursday in Abuja during a media briefing ahead of the Second West Africa Refined Fuel Conference, scheduled for August 11 and 12, 2026, the Chief Executive Officer of the NMDPRA, Rabiu Umar, said Africa’s growing refining capacity has made the establishment of a regional benchmark increasingly imperative.
According to him, although Africa remains one of the world’s leading producers of crude oil and natural gas, prices for much of its petroleum commodities continue to be determined outside the continent.
“The vision is to establish West Africa as a credible regional marketplace where petroleum products can be traded efficiently, transparently, and competitively,” Umar said.
Umar explained that the conference, organised by the NMDPRA in collaboration with S&P Global Commodity Insights and the West Africa Regulators Forum, will focus on unlocking investments required to build infrastructure capable of supporting transparent regional pricing and efficient petroleum products trading.
Themed: “Funding West Africa Infrastructure and Distribution to Create a Transparent Market for Regional Price Benchmarks”, Umar said the conference would bring together regulators, policymakers, investors, financiers, and industry leaders from across Africa and beyond to develop practical financing models for infrastructure projects that would transform the downstream petroleum sector.
According to Umar, discussions will centre on financing pipelines, storage depots, marine terminals, rail networks, ports, refineries, and digital commodity trading platforms needed to lower logistics costs, improve supply reliability, and facilitate seamless cross-border movement of petroleum products.
He added that participants would also examine opportunities in gas processing, transportation, liquefaction, compression facilities, strategic petroleum reserves, and liquefied natural gas infrastructure as part of efforts to deepen regional energy integration.
Regional Benchmark Reflects Local Market Realities
Responding to questions from journalists, the NMDPRA chief defended the proposal for a West African petroleum products pricing benchmark, stressing that virtually every major energy market globally operates its own pricing index.
He explained that regional benchmarks are designed to reflect local supply and demand conditions, transportation costs, logistics, and market dynamics, making them more relevant to domestic and regional traders than international reference prices.
Drawing comparisons with Europe, Umar noted that petroleum products across the continent are largely priced around the Amsterdam-Rotterdam-Antwerp (ARA) trading hub.
He argued that West Africa should develop a similar pricing mechanism as refining capacity continues to expand, particularly with major investments in refining infrastructure across the continent.
“The more we can produce, the more relevant it becomes to have our own reference pricing,” he said.
Umar further stressed that infrastructure remains the backbone of regional energy integration, noting that without adequate pipelines, ports, depots, and storage facilities, petroleum products cannot move efficiently across African markets.
He cited the West African Gas Pipeline as a successful example of regional infrastructure that allows gas produced in Nigeria to supply neighbouring countries, adding that similar investments are required throughout the downstream petroleum value chain.
The regulator also underscored the importance of reliable market data in promoting transparent pricing, evidence-based regulation, and informed investment decisions.
He revealed that significant progress has already been made towards harmonising petroleum product specifications across African countries through engagements involving regional stakeholders and the Africa Refiners Association, a development expected to facilitate smoother cross-border trade.
On fuel quality, Umar maintained that petroleum products supplied from Nigeria meet internationally acceptable standards, noting that locally refined products contain sulphur levels below 50 parts per million (ppm).
He added that increasing domestic refining has improved fuel availability within Nigeria while creating opportunities to export refined petroleum products to neighbouring African countries.
According to him, regional integration remains a gradual process that will continue to strengthen as countries collaborate on infrastructure development, regulatory alignment, and market reforms.
Felix Ifijeh is a journalist with years of professional reporting experience. Known for his keen news sense, compelling storytelling and commitment to accurate, impactful reporting, he has built a reputation for turning leads into clear, engaging, and well-structured reports that resonate with readers. His work reflects deep newsroom experience and a commitment to accurate, impactful journalism.
