West Africa must break its reliance on European fuel benchmarks and establish a regional pricing framework that reflects local market realities, Nigeria’s midstream and downstream oil regulator declared on Tuesday.
Speaking at the second West Africa Refined Fuel Market Conference in Abuja, Authority Chief Executive of the NMDPRA, Rabiu Umar, argued that African consumers should no longer be exposed to price shocks triggered by events thousands of kilometres away.
“If we look at the refining capacity on the continent and how it has been increasing, it simply doesn’t make sense that if there is a problem in Western Europe or in the Mediterranean, it is going to affect our pricing in Africa,” Umar told delegates.
He stressed that a dedicated West African benchmark would ensure that local prices react to regional conditions rather than external geopolitical friction, shielding the market when local supply remains stable.
The push for a self-contained pricing hub comes amid fresh global volatility, as rising tensions around the Strait of Hormuz have recently driven Brent crude beyond $90 a barrel. However, with domestic refining output expanding rapidly, spearheaded by Nigeria’s growing capacity, industry leaders argue the continent is well-positioned to take control of its own market fundamentals.
To turn the proposed trading hub into a reality, Umar outlined a broad roadmap encompassing harmonised product standards, reliable market data, stronger cross-border funding, and joined-up transport networks spanning ports, rail, roads, and pipelines.
Addressing the structural hurdles facing the bloc, the regulator highlighted divergent fuel quality rules and redundant infrastructure as major barriers to seamless cross-border trade. Pointing to Nigeria’s surplus of storage capacity, Umar urged neighbouring nations to abandon duplicate projects and instead build on their individual comparative advantages.
“Capital will go where projects are bankable,” Umar cautioned, emphasizing that regulatory predictability, operator efficiency, and consumer affordability must all align to attract the required investment for the region’s energy transformation.
Hosted jointly by the NMDPRA, S&P Global Commodity Insights, and the West Africa Regulator Forum (WARF), the Abuja gathering aims to transition the region from initial price-discovery talks to the practical creation of an operational petroleum trading hub.