NMDPRA seeks West African benchmark for petroleum products pricing
By Obas Esiedesa, Abuja
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has called on petroleum regulators across West Africa to collaborate on establishing a regional pricing benchmark for refined petroleum products.
The authority said a transparent West African pricing mechanism would strengthen market confidence, promote cross-border trade and attract investment into the downstream petroleum sector.
The Chief Executive of NMDPRA, Rabiu Umar, made the call in Abuja on Thursday ahead of the second West Africa Refined Fuel Conference.
Umar argued that Africa, despite being a major producer of crude oil and natural gas, still relies heavily on international markets to determine the prices of petroleum products produced within the continent.
He said the conference, organised in partnership with S&P Global Commodity Insights and the West Africa Regulators Forum (WARF), was aimed at developing a credible regional marketplace where petroleum products could be traded efficiently, transparently and competitively.
“The vision is to establish West Africa as a credible regional marketplace where petroleum products can be traded efficiently, transparently and competitively,” Umar said.
“By strengthening infrastructure, harmonising regulations and improving market data, the region can enhance price discovery, facilitate cross-border trade and attract greater investment.”
The conference, scheduled for August 11 and 12 in Abuja, is themed: “Funding West Africa Infrastructure & Distribution to Create a Transparent Market for Regional Price Benchmarks.”
It will bring together regulators, investors, financial institutions and industry stakeholders to explore ways of financing infrastructure and logistics required to support a regional petroleum trading hub.
Umar said progress had been recorded since the maiden edition of the conference in 2025, 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.
He said the 2026 edition would focus on infrastructure financing, regional cooperation, market transparency, logistics development and expanding refining capacity to improve energy security and reduce dependence on imported petroleum products.
The NMDPRA chief identified pipelines, storage facilities, marine terminals, ports, rail infrastructure, digital commodity exchanges, trading platforms, strategic petroleum reserves, LNG infrastructure and logistics corridors as critical investments needed to create an integrated regional energy market.
He also highlighted opportunities across the gas value chain, including gas processing, transportation, liquefaction and compression.
Umar stressed that regulators had a key role in ensuring fair competition, investor confidence, consumer protection and regional cooperation through harmonised standards and regulations.
He defended the need for a regional petroleum products pricing benchmark, noting that major energy markets across the world operate reference pricing systems that reflect their local realities.
He cited the Amsterdam-Rotterdam-Antwerp (ARA) trading hub in Europe as an example of a benchmark that considers supply, demand, transportation and logistics costs.
“The more we are able to produce, the more relevant it becomes to have our own reference pricing,” he said.
Umar added that infrastructure remained central to regional energy integration, noting that pipelines, ports and storage facilities were essential for efficient movement of petroleum products across borders.
He also called for the harmonisation of petroleum product specifications across African countries to boost regional trade, adding that ongoing engagements with stakeholders, including the Africa Refiners Association, were making progress.
According to him, petroleum products supplied from Nigeria meet international quality standards, with sulphur content not exceeding 50 parts per million, while increased domestic refining capacity is improving local supply and supporting exports to neighbouring countries.
The post NMDPRA seeks West African benchmark for petroleum products pricing appeared first on Vanguard News.