By Ajibola Olaide, JKNewsMedia Correspondent
A CALL to establish a regional oil pricing benchmark for West Africa has been issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to address regional market disparities and reduce dependence on foreign pricing systems.
The Authority Chief Executive, Farouk Ahmed, made the proposal on Tuesday in Abuja during the inaugural Global Commodity Insights Conference on West African Refined Fuel, convened by NMDPRA in partnership with S&P Global Commodity Insights.
Despite West Africa’s growing role in refining and hydrocarbon production, the region still relies heavily on international benchmarks such as those from Northwest Europe, the U.S. Gulf Coast, Singapore, and the Arab Gulf.
Ahmed warned that this dependence could impede the creation of a resilient and self-reliant energy market across the region.
He argued that global pricing templates fail to reflect Africa’s distinct supply chain dynamics and economic realities, calling instead for a regionally anchored benchmark system.
Such a system, he said, would improve price discovery, enhance transparency, attract investments, and drive market development through digital platforms, expanded supply chains, and strategic trade zones.
Ahmed cited regional refining capacity, currently standing at 1.335 million barrels per day across Nigeria, Ghana, Niger, Senegal, and Côte d’Ivoire.
He added that recent supply data showed monthly West African gasoline trade reaching 2.05 million metric tonnes, with 69 per cent sourced from imports and 31 per cent from local refineries.
Referencing the 2025 OPEC World Oil Outlook, he projected Africa’s refining capacity would grow by 1.2 million barrels per day between 2025 and 2030, with West Africa contributing significantly through new and ongoing projects.
Nigeria’s extensive maritime infrastructure, deep seaports, and regulatory alignment with global standards were identified as assets capable of strengthening regional energy integration.
Ahmed said the collaboration with S&P Global aims to develop refined product pricing indices specific to West African markets, covering products like Premium Motor Spirit (PMS), Automotive Gasoil (AGO), Aviation Turbine Kerosene (ATK), and Liquefied Petroleum Gas (LPG).
He emphasised the joint objective to promote pricing clarity, reduce arbitrage inefficiencies, and build confidence in African pricing structures.
Delivering a keynote address, Bashir Ojulari, Group CEO of Nigerian National Petroleum Company Limited (NNPC Ltd.), reaffirmed support for regional refining growth.
He outlined the company’s strategy to reposition its own refineries, invest in the Dangote Refinery, explore condensate opportunities, and back third-party initiatives to transform Africa into a major refining hub.
Ojulari praised the NMDPRA for leading the charge toward energy self-sufficiency and urged industry players to progress from declarations to delivery, and from isolated efforts to unified regional action.
