FG backs West Africa petrol pricing benchmark

Nigeria's Federal Government has endorsed the creation of a regional petrol pricing benchmark for West Africa, viewing it as a crucial step toward enhancing energy security and deepening cross-border trade. Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, stated at the 2026 West Africa Refined Fuel Market (WAFRFM) Conference in Abuja that this initiative would empower the region to set the value of its own refined petroleum products.

Lokpobiri highlighted Nigeria's recent deregulation of its downstream petroleum sector as a move designed to unlock investment and allow market forces to dictate prices. He emphasized that Nigeria's growing refining capacity and strategic location position it to champion a more integrated West African petroleum market. However, he stressed that Nigeria cannot achieve this goal alone, calling for increased cooperation among West African nations and greater harmonization of regulatory approaches.

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If we are successful in Nigeria, we haven’t achieved our objective. We want Ghana to succeed.

Rabiu Umar, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), described the conference as a transition from planning to execution. He noted that previous efforts, including the 2025 inaugural conference and collaboration with S&P Global Commodity Insights, had laid the groundwork for a regional reference market. Umar cautioned that a benchmark price alone is insufficient, stressing the need for physical infrastructure, commercial liquidity, reliable market data, and operational efficiency to establish a true trading hub. He urged West African countries to develop the necessary infrastructure for efficient product movement from refineries to demand centers across borders.

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A reference price is not by itself a trading hub. A conference is not a market.