West Africa is stepping up efforts to reduce its reliance on foreign fuel price benchmarks, with Nigeria leading a push to establish a regional pricing mechanism that reflects local supply, demand and logistics rather than indices set outside the continent.
Nigeria’s Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said the proposal will be a central focus of the second West Africa Refined Fuel Conference, scheduled to hold in Abuja on 11 and 12 August, as governments, investors and industry executives explore how to build a more integrated regional petroleum market.
Speaking ahead of the conference, NMDPRA Chief Executive Rabiu Abdullahi Umar said Africa’s growing refining capacity makes it increasingly important for West Africa to develop its own transparent price reference for refined petroleum products.
“Virtually every major energy market in the world operates its own pricing index,” Umar said. “The more we are able to produce, the more relevant it becomes to have our own reference pricing.”
The initiative comes as several African countries expand refining capacity in a bid to reduce dependence on imported fuels and strengthen regional energy security.
