NMDPRA seeks West African benchmark for petroleum products pricing

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is advocating for West African petroleum regulators to collaborate on establishing a regional pricing benchmark for refined petroleum products. The authority argues that a transparent West African pricing mechanism is crucial for strengthening market confidence, promoting cross-border trade, and attracting investment into the downstream petroleum sector.

Rabiu Umar, Chief Executive of NMDPRA, stated that Africa, despite being a significant producer of crude oil and natural gas, remains heavily dependent on international markets for pricing its own petroleum products. He highlighted that the upcoming second West Africa Refined Fuel Conference, organized with S&P Global Commodity Insights and the West Africa Regulators Forum (WARF), aims to foster a credible regional marketplace for efficient, transparent, and competitive petroleum product trading.

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The vision is to establish West Africa as a credible regional marketplace where petroleum products can be traded efficiently, transparently and competitively.

The conference, themed “Funding West Africa Infrastructure & Distribution to Create a Transparent Market for Regional Price Benchmarks,” is scheduled for August 11 and 12 in Abuja. It will convene regulators, investors, financial institutions, and industry stakeholders to discuss financing strategies for the infrastructure and logistics necessary to support a regional petroleum trading hub.

Umar noted progress since the first conference in 2025, including the establishment of WARF, the publication of West African reference prices, and the opening of S&P Global Commodity Insights’ regional office in Abuja. The 2026 edition will focus on infrastructure financing, regional cooperation, market transparency, logistics development, and expanding refining capacity to enhance energy security and reduce reliance on imported products. Critical investments identified include pipelines, storage facilities, marine terminals, ports, rail infrastructure, digital commodity exchanges, and strategic petroleum reserves.

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By strengthening infrastructure, harmonising regulations and improving market data, the region can enhance price discovery, facilitate cross-border trade and attract greater investment.