Abuja: Determined to bolster transparency and regional resilience, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced efforts to develop an African benchmark for oil pricing.
The initiative aims to reflect market realities within the continent, reduce reliance on foreign indices, and foster greater price stability for petroleum products across Africa.
Speaking at the inaugural ‘Global Commodity Insights Conference on West African Refined Fuel’ in Abuja, Mr Farouk Ahmed, the Authority’s Chief Executive, emphasised that a homegrown benchmark would empower stakeholders, promote fair trade, and enhance economic sovereignty in the region.
NMDPRA convened the event in collaboration with S&P Global Commodity Insights.
Ahmed warned that continued reliance on international benchmarks could hinder the development of a robust and self-sufficient regional energy market.
“Despite being a significant producer of hydrocarbon resources and a growing hub for refining, West Africa still depends on posted prices from global reference markets for its trading activities.
“These include benchmarks from regions such as Northwest Europe, the U.S. Gulf Coast, the Mediterranean, Singapore, and the Arab Gulf.
“While these benchmarks are globally accepted, they often do not reflect the supply chain peculiarities and economic realities of the African continent,” he said.
He said the creation of a regional pricing benchmark would promote price discovery, enhance transparency, deepen market development, and improve energy availability.
He said it would also encourage investments in downstream infrastructure through trade zones, digital market platforms, and increased supply chain visibility.
The conference focused on standardising pricing mechanisms, improving data transparency, and expanding refining and storage capacity across the region.
Ahmed noted that the refining capacity in countries such as Nigeria, Ghana, Niger, Senegal, and Côte d’Ivoire currently stands at 1.335 million barrels per day.
He said fuel supply data for 2025 showed that West Africa traded 2.05 million metric tonnes of gasoline monthly, with 69 per cent coming from imports and 31 per cent from local refineries.
He also cited the 2025 OPEC World Oil Outlook, which projected an additional 1.2 million barrels per day of refining capacity in Africa between 2025 and 2030.
“West Africa is expected to contribute significantly to that increase through new and ongoing refinery projects.
“Nigeria’s active maritime coastline links West African markets and features deep seaports with world-class infrastructure and technology.
“We also have regulatory frameworks that meet global maritime standards,” Ahmed said.
He added that NMDPRA’s partnership with S&P Global would leverage reliable data and benchmarking expertise to pilot refined product pricing indices for the Nigerian and broader West African markets.
He also said that the indices would cover products such as Premium Motor Spirit (PMS), Automotive Gasoil (AGO), Aviation Turbine Kerosene (ATK), and Liquefied Petroleum Gas (LPG).
“Our shared goal is to provide clarity, reduce arbitrage inefficiencies, and foster confidence in African pricing frameworks,” Ahmed said.
In a keynote address, Mr Bashir Ojulari, Group CEO of Nigerian National Petroleum Company Limited (NNPC Ltd.), reaffirmed the company’s commitment to removing bottlenecks and laying the groundwork for a self-sustaining refining ecosystem in Africa.
Speaking on the theme “Building an African Refinery Hub”, Ojulari said the NNPC was repositioning its refineries, investing strategically in the Dangote Refinery, exploring condensate opportunities, and supporting third-party projects to help transform Africa into a central refining hub.
“NNPC Ltd. stands ready, ready to co-create, co-invest, and co-lead in building an inclusive, resilient, and globally competitive African refining ecosystem,” he said.
Ojulari lauded the NMDPRA for spearheading the push toward energy sufficiency and urged industry stakeholders to move from “declarations to delivery, from national ambition to regional execution, and from fragmented development to system-wide transformation.”
