NMDPRA Advocates West African Fuel Price Benchmark, Sets August Conference To Drive Regional Market Integration

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ABUJA – The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has intensified efforts to establish a transparent West African petroleum products pricing benchmark, insisting that the region can no longer rely on price references determined outside the continent despite its vast oil and gas resources.

Chief Executive Officer of the NMDPRA, Rabiu Abdullahi Umar, disclosed on Thursday in Abuja while briefing journalists ahead of the second West Africa Refined Fuel Conference scheduled for August 11 and 12, 2026.

Speaking at the press conference, Umar said the initiative is aimed at positioning West Africa as a credible regional marketplace where refined petroleum products are traded efficiently, transparently and competitively.

According to him, although Africa produces significant volumes of crude oil and gas, pricing for much of its petroleum commodities is still 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,” he said.

He 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 mobilising investment for infrastructure capable of supporting transparent regional pricing and trading.

The conference is themed, “Funding West Africa Infrastructure and Distribution to Create a Transparent Market for Regional Price Benchmarks.”

Umar said the event would bring together regulators, investors, financial institutions and industry leaders to identify practical solutions for financing infrastructure and logistics needed to strengthen the region’s downstream petroleum market.

He noted that the maiden edition of the conference held in July 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 S&P Global Commodity Insights’ regional office in Abuja.

According to him, this year’s conference will deepen discussions on building an integrated, resilient and sustainable refined products market across Africa.

He said participants would examine infrastructure financing, market transparency, regional cooperation, logistics development and strategies for expanding refining capacity to improve energy security and reduce dependence on imported petroleum products.

Umar identified investment in pipelines, storage facilities, marine terminals, ports, rail infrastructure, refineries and digital commodity trading platforms as critical to reducing logistics costs, improving supply security and enhancing cross-border trade.

He also listed opportunities in gas processing, transportation, liquefaction, compression, strategic petroleum reserves and LNG infrastructure as key areas requiring private sector investment.

The NMDPRA chief stressed that reliable market data remains essential for transparent pricing, informed investment decisions and evidence-based regulation.

Responding to questions, Umar defended the drive for a regional petroleum products price benchmark, noting that virtually every major energy market in the world operates its own pricing index.

He explained that regional benchmark prices reflect local realities such as supply and demand, transportation costs and logistics, making them more suitable for market participants than relying solely on global reference prices.

According to him, Europe, for example, operates around the Amsterdam-Rotterdam-Antwerp trading hub, which serves as a major reference point for petroleum products across the region.
He said West Africa should develop a similar pricing mechanism as refining capacity continues to expand across the continent.

“The more we are able to produce, the more relevant it becomes to have our own reference pricing,” he said.
Umar also emphasised that infrastructure remains the backbone of regional energy integration, noting that without adequate pipelines, ports and storage facilities, petroleum products cannot move efficiently across markets.

He cited the West African gas pipeline as an example of infrastructure enabling gas produced in Nigeria to reach neighbouring countries, adding that similar investments are required across the downstream petroleum value chain.

The NMDPRA chief further stressed the need to harmonise petroleum product specifications across African countries to facilitate seamless cross-border trade.

He said significant progress had been made through engagements involving regional stakeholders and the Africa Refiners Association towards standardising fuel quality specifications.

On Nigeria’s fuel quality, Umar maintained that petroleum products supplied from the country meet high standards, stating that Nigeria does not produce products with sulphur content above 50 parts per million (ppm).

He added that local refining has also improved petroleum product supply within Nigeria while supporting exports to neighbouring African countries, describing regional integration as an evolving process that would continue to strengthen with improved collaboration and infrastructure investment.