Ahead of August Conference, NMDPRA Pushes for Regional Fuel Pricing Hub

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has renewed its push for the creation of a West African fuel pricing and trading hub, saying the region must invest more in infrastructure, logistics and market transparency if it is to compete effectively and set its own benchmark for petroleum products.

Speaking ahead of the 2nd Edition of the West Africa Refined Fuel Conference scheduled for 11 and 12 August in Abuja, the chief executive of NMDPRA, Rabiu Abdullahi Umar, said West Africa must move away from relying on external pricing structures and build a regional system that reflects its own market realities.

Umar, who is also the chairman of the West Africa Regulator Forum (WARF), said the proposed conference, which is being organised in collaboration with S&P Global Commodity Insights and WARF, will bring together regulators, investors, financial institutions and industry stakeholders to discuss practical ways of funding infrastructure that can support a transparent and competitive regional market.

Umar said the idea behind the conference is rooted in a simple reality: Africa produces significant volumes of oil and gas, yet much of the pricing for its commodities is still determined outside the continent.

He said the objective is to develop a credible West African marketplace where petroleum products can be traded efficiently and transparently, with better price discovery, stronger cross-border trade and improved investor confidence.

“Efficient markets require efficient infrastructure,” he said, stressing that investment in pipelines, storage terminals, ports, rail systems, road networks, refineries and digital trading platforms would reduce supply costs, improve energy security and deepen regional integration.

He added that regulators have a central role to play in creating the right environment for fair competition, market transparency, consumer protection and regional cooperation.

According to him, they must also work to harmonise standards and remove barriers that make cross-border trade difficult.

The NMDPRA chief said progress had already been recorded since the inaugural conference held in July 2025. He noted that the West Africa Regulator Forum had been constituted, West African reference prices had been published, and S&P Global Commodity Insights had set up its regional office in Abuja.

Umar said the August conference is expected to build on those gains by focusing on funding for infrastructure and distribution systems that can support a transparent market for regional price benchmarks.

He explained that the event would also examine market dynamics, emerging opportunities and the infrastructure gaps that continue to limit the growth of Africa’s refining and downstream sector.

“The primary objective is to foster a high-level dialogue around building an integrated, resilient and sustainable refined market in Africa,” he said, adding that the conference would explore strategies for expanding and modernising refining capacity, improving energy security and reducing import dependence.

Among the opportunities expected to be highlighted are gas processing and transportation, liquefaction, compression, petroleum storage facilities, pipeline development, marine terminals, digital commodity exchanges, trading platforms, strategic reserves, LNG infrastructure and logistics corridors.

Umar said reliable market data would also be a major issue at the conference, as it is essential for transparent pricing, informed investment decisions and evidence-based regulation.

He said the expected outcomes include new investment partnerships, stronger collaboration among regulators, infrastructure financing initiatives, improved regional cooperation, policy recommendations and roadmaps for logistics and trading infrastructure.

The NMDPRA chief also pointed to the growing importance of West Africa in the global energy landscape, saying the region has expanding refining capacity, rising demand and a strategic geographical position that could support a major regional market.

He said better infrastructure, stronger logistics, regional storage capacity and deeper market integration would improve supply resilience and reduce the region’s vulnerability to disruptions.

On product specification across African countries, Umar said work was ongoing through ECOWAS and the Africa Refiners Association to harmonise standards. He said that once a common level is achieved, it would become easier for petroleum products to move across the continent.

He noted that Nigeria does not produce fuel above 50 parts per million sulphur content, adding that whatever the country exports is on specification and of a higher quality than products brought in from some parts of the sub-region.

He also said Nigeria had already begun to benefit from improved regional supply flows through the Dangote Refinery, noting that the facility has supported local supply and helped some neighbouring countries access products.

Umar said the situation showed that the regional conversation was evolving, adding that there is still room for deeper collaboration and integration across West Africa.

The August conference in Abuja is expected to serve as a key platform for regulators and market players to discuss how West Africa can build its own pricing benchmark and strengthen the infrastructure needed to support a competitive energy market.