The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the West Africa Regulators Forum (WARF) have intensified calls for the establishment of an African regional fuel pricing benchmark, arguing that the continent must end its over-reliance on foreign pricing indices that do not reflect local market realities.
The call was made during a press conference in Abuja on Thursday ahead of the second West Africa Refined Fuel Market Conference.
Speaking at a press conference in Abuja, the Authority Chief Executive of NMDPRA and Chairman of WARF, Rabiu Umar, declared that Africa’s rapidly expanding refining capacity has made the creation of a homegrown pricing mechanism increasingly important.
“Every region in the world today has its own pricing benchmark. Whether you’re talking about Europe, America, the Mediterranean or the Gulf countries, there is a trading index that reflects the realities of that region and Africa should not be an exception,” Umar stated.
A Regional Benchmark for African Realities
Umar explained that regional benchmarks are essential because they account for local supply and demand dynamics, transportation costs, and logistics, ensuring prices reflect actual market conditions rather than external factors. He cited Europe’s Amsterdam-Rotterdam-Antwerp (ARA) trading hub as a successful model that West Africa should emulate.
“The more we’re able to refine our products, the more relevant it is to have our own reference pricing and create that advantage, particularly within the West African region,” Umar said. “Today, we have Lomé. Tomorrow, who knows, we may have that reference price move to Lagos or somewhere around there.”
The push comes as Nigeria’s domestic refining capacity expands significantly, particularly with the Dangote Petroleum Refinery reshaping fuel trade dynamics across West Africa. Despite being one of the world’s largest crude oil producers, African petroleum product pricing has largely been benchmarked against international indices in Europe, the United States, and the Gulf.
Infrastructure Investment and Regional Integration
Umar announced that the West Africa Refined Fuel Market Conference, scheduled for August 11-12 in Abuja, will serve as a strategic platform to identify critical infrastructure gaps and attract investment. The event, organised in collaboration with S&P Global Commodity Insights and WARF, is themed “Funding West Africa Infrastructure and Distribution to Create a Transparent Market for Regional Price Benchmarks.”
“Efficient markets require efficient infrastructure,” Umar emphasised, highlighting investment opportunities in pipelines, storage terminals, ports, rail systems, refineries, and digital commodity trading platforms. He noted that such investments would reduce supply costs, improve energy security, and enhance regional integration.
The NMDPRA boss cited the West African Gas Pipeline as a successful example of how shared infrastructure facilitates regional energy trade and called for similar investments across the downstream petroleum value chain.
Building on 2025 Gains
Umar noted that the inaugural conference in 2025 had already produced tangible outcomes, including the establishment of the West Africa Regulators Forum, publication of West African reference prices, and the opening of an S&P Global Commodity Insights regional office in Abuja.
He emphasised that regulators play a central role in creating an enabling environment through fair competition, market transparency, investor confidence, consumer protection, and harmonised standards that facilitate cross-border trade.
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Harmonising Standards and Fuel Quality
On fuel quality standards, Umar said significant progress has been made through engagements with the ECOWAS and the Africa Refiners Association to harmonise product specifications across the continent.
He assured that Nigeria currently produces petroleum products with sulphur content no higher than 50 parts per million (ppm), describing them as meeting international specifications and, in many cases, of higher quality than supplies from some neighbouring countries.
The West Africa Refined Fuel Market Conference will take place from August 11-12, 2026, in Abuja, Nigeria.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X