The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Thursday called on petroleum regulators across West Africa to collaborate on establishing a regional transparent petroleum pricing and trading hub, aiming to end external control of commodity prices.
The NMDPRA’s Chief Executive Officer, Rabiu Umar, made the call while speaking at a press conference in Abuja ahead of the 2nd edition of the West Africa Refined Fuel Market Conference scheduled for August 11 to 12.
The NMDPRA said the conference is organised in collaboration with S&P Global Commodity Insights and the West Africa Regulators Forum (WARF) with the theme: ‘Funding West Africa Infrastructure and Distribution to Create a Transparent Market for Regional Price Benchmarks.’
Mr Umar said a transparent West African pricing mechanism would strengthen market confidence, promote cross-border and attract investment into the downstream petroleum sector.
According to him, the conference is to foster a high-level dialogue around building an integrated, resilient and sustainable refined market in Africa to facilitate exchange on market dynamics, identifying critical infrastructure gaps, promoting collaborative frameworks to enhance transparency, exploring pathways for a credible African reference price benchmark, and examining strategies to expand refining capacity to reduce import dependence.
He said the conference was instituted to address “a stark reality, that Africa produces significant volumes of oil and gas, yet much of the pricing for our commodities is determined outside the continent.”
“The vision is to establish West Africa as a credible regional marketplace where petroleum products can be traded efficiently, transparently, and competitively. By strengthening infrastructure, harmonising regulations, and improving market data, the region can enhance price discovery, facilitate cross-border trade, and attract greater investment,” he said.
Mr Umar said regulators provide the framework that enables fair competition, market transparency, investor confidence, consumer protection, and regional cooperation, noting that they also work to harmonise standards and facilitate cross-border trade.
NMDPRA said efficient markets require efficient infrastructure, including pipelines, storage terminals, ports, rail systems, road networks, refineries and digital trading platforms.
“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,” he added.
He noted that energy markets extend beyond national borders.
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“Working together enables countries to optimise infrastructure, improve market efficiency, reduce duplication, and strengthen regional energy security,” he said.
Opportunities
The NMDPRA listed potential investment opportunities of the conference to include gas value chain infrastructure, petroleum storage facilities, pipeline development, marine terminals, digital commodity exchanges, trading platforms, strategic petroleum reserves, LNG infrastructure, and 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,” he said.
Expected outcomes
NMDPRA said it expects the conference to produce new investment partnerships, strengthened collaboration among regulators, infrastructure financing initiatives, enhanced regional cooperation, policy recommendations, roadmaps for logistics and trading infrastructure and increased private sector participation.
Mr Umar said West Africa represents one of the fastest-growing energy markets, with expanding refining capacity, increasing demand, strategic geographic positioning, and significant opportunities across the petroleum value chain.
“Diversified infrastructure, improved logistics, regional storage capacity, and stronger market integration enhance supply resilience and reduce vulnerability to disruptions,” he added.
