The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) yesterday called for West Africa to establish its own pricing benchmark, independent of the Mediterranean pricing benchmark for petroleum products.
The NMDPRA Chief Executive, Rabiu Abdullahi Umar, who is also the Chairman of the West Africa Regulators Forum (WARF), emphasised the case for regional pricing at a press conference in Abuja.
He said regional pricing is necessary because other regions have their own.
According to him, it takes into account the region’s market forces and logistics.
He said, “Because the process for pricing starts with price discovery, and it takes a lot of elements into consideration.
“For example, demand and supply, what is the logistics cost to bring the product into that region? And all that goes into defining the reference price. Another reason is, if you look at it, most regions have, if you look at Europe, Europe has ARA, which is Amsterdam, Rotterdam, and Antwerp as the trading hub.
“But the whole of Europe, most of Europe gets supplied from there. Why? Because that’s a hub.
“The whole point of having regional pricing is to be able to create a hub where all the activities within a given region are going to be coming out of that place.”
WARF intensified its efforts in calling for investment in Africa’s infrastructure and logistics to build a West Africa pricing and trading hub.
Umar announced that the NMDPRA is organising the 2nd Edition of the conference in collaboration with S&P Global Commodity Insights and the West Africa Regulators Forum (WARF), with the theme: “Funding West Africa Infrastructure & Distribution to Create a Transparent Market for Regional Price Benchmarks.”
According to him, the event is scheduled to be held from 11th to 12th August in Abuja.
He explained that the primary objective of the conference is to foster a high-level dialogue around building an integrated, resilient and sustainable refined market in Africa, with the goal of facilitating the exchange of knowledge and insights on current market dynamics, evolving trends, and emerging opportunities within the African energy sector.
It is also aimed at identifying critical infrastructure gaps and highlighting strategic investment opportunities to strengthen the continent’s refining and downstream value chain.
Umar stressed that it is to promote collaborative frameworks and partnerships that enhance market transparency, improve efficiency, and strengthen security of supply across Africa.
He added that it is to explore pathways for establishing a credible African reference price benchmark that reflects regional market realities and supports transparent pricing mechanisms.
The chairman said it is to examine strategies for expanding and modernising refining capacity across the continent to improve energy security, reduce import dependence, and drive sustainable economic growth.
Regulators, according to him, provide the framework that enables fair competition, market transparency, investor confidence, consumer protection, and regional cooperation. NMDPRA intensifies efforts for building West Africa pricing, trading hub Petrol importation reduces to 18.1ml/d in June, says NMDPRA Britain hails Kano as West Africa’s leader in education investment
Umar said they also work to harmonise standards and facilitate cross-border trade, as efficient markets require efficient infrastructure.
He stressed that investments in pipelines, storage terminals, ports, rail systems, road networks, refineries, and digital trading platforms reduce supply costs, improve energy security, and enhance regional integration.
Improved infrastructure and market efficiency can reduce supply disruptions, lower logistics costs, encourage competition, and support more reliable access to petroleum products across the region.
The NMDPRA boss said energy markets extend beyond national borders.
He added that working together enables countries to optimise infrastructure, improve market efficiency, reduce duplication, and strengthen regional energy security.
On opportunities, he said “Potential opportunities include the gas value chain (processing, transportation, liquefaction, compression), petroleum storage facilities, pipeline development, marine terminals, digital commodity exchanges, trading platforms, strategic petroleum reserves, LNG infrastructure, logistics corridors.”
Reliable market data is essential for transparent pricing, informed investment decisions, risk management, and market confidence.
“High-quality data also supports evidence-based regulation and policy development.”
“Expected outcomes include: new investment partnerships, strengthened collaboration among regulators, infrastructure financing initiatives, and enhanced regional cooperation.”
He recalled that last July, the NMDPRA, in conjunction with S&P Global Commodity Insights, inaugurated an annual conference with the theme: West Africa Refined Fuel Market: Pathway to a Regional Reference Market.
The conference, he said, was instituted to address a stark reality that Africa produces significant volumes of oil and gas, yet much of the pricing for these commodities is determined outside the continent.
Umar also said the conference seeks to bring together regulators, investors, financial institutions, and industry leaders to develop practical solutions for investing in infrastructure and logistics that will support a transparent, competitive West African pricing and trading hub.
He explained that the vision is to establish West Africa as a credible regional marketplace where petroleum products can be traded efficiently, transparently, and competitively.
The chairman said that by strengthening infrastructure, harmonising regulations, and improving market data, the region can enhance price discovery, facilitate cross-border trade, and attract greater investment.
He recalled that within the year, significant progress has been made on key outcomes of the 2025 conference, including the constitution of the WARF, the publication of WA reference prices, and the setting up of the S&P Global Commodity Insights Regional Office in Abuja.
News Credit to our media partner The Nation .
