NMDPRA pushes for integrated West African fuel market as supply chains shift

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has called for a functioning West African fuel market amid regional supply chains that are being fundamentally reshaped by the Dangote Refinery.

Rabiu Umar, the Chief Executive of the NMDPRA and Chairman of the West Africa Regulators’ Forum (WARF), made the call at the West Africa Refined Fuel Market Conference being held in Abuja, and attended by Nairametrics.

The event, organised by the NMDPRA in collaboration with S&P Global Commodity Insights and WARF, convened industry leaders, business moguls, foreign investors, and Federal Government officials.

What they are saying

Addressing the audience, Umar said the question is no longer whether West Africa has the potential to become a credible petroleum pricing and trading centre, adding that both the resources and demand exist in the region.

• According to him, “The refining landscape is profoundly changing, driven by the operationalisation of monumental domestic facilities like the Dangote Refinery, which are fundamentally reshaping our regional supply chains.”

For him, the question is whether stakeholders are prepared to build the infrastructure, mobilise the capital, improve operations, share data, and deepen the collaboration necessary to translate that potential “into a functioning market.”

“In the years ahead, our measure of success must be a West African market in which products move more efficiently, supply is more secure, investors have greater confidence, regional trade expands, and prices increasingly reflect the fundamentals of our own market,” he said.

He said Africa must progress from being principally a price-taker in global petroleum markets to becoming an increasingly credible centre of price discovery, trading, investment, and value creation.

To achieve this ambition, he stressed that the region will require infrastructure, capital, and operational excellence.

He also stressed the need for regulatory cooperation and execution among stakeholders.

He said the region cannot build an internationally credible pricing and trading hub with inefficient infrastructure and operations without operational excellence.

• “Our ports must become more efficient. Our terminals must improve turnaround times. Our pipelines and storage systems must operate safely and reliably. Our refineries must pursue sustained utilisation, reliability, and competitive yields. Our logistics systems must reduce avoidable demurrage, delays, losses, and unnecessary transportation costs,” he added.

He stressed that the industry must deploy technology to improve inventory management, product tracking, demand forecasting, scheduling, and operational visibility.

NUPRC’s position

On her part, the Chief Executive Officer (CEO) of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, said the upstream and downstream sectors are going through tremendous changes.

According to her, Nigeria is seeing a spike in refining capacity as the country not only meets its refining needs but now attempts to export.

• On oil production, she said, “We are now able to cross the barrier that OPEC has set for us.”

She emphasised that the West African market must be integrated and operate under an integrated system rather than continuing to operate in silos.

Minister of petroleum calls for more investors

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said Nigeria cannot afford to draw back on the progress made in the oil and gas sector.

According to him, the conference is a turning point in Africa’s pursuit of energy sovereignty.

• He said despite the level of production by the Dangote Refinery, it “is not enough.”
• He called on investors with capital to invest in refining opportunities in the region, adding that this is the best time to attract as much investment as possible.
• He urged stakeholders and investors to “follow the results we have seen from Dangote Refinery” as the continent aspires to achieve energy security.

He assured stakeholders of the Federal Government’s commitment to supporting the forum in carrying out its mandate for the benefit of the entire continent.

Get up to speed

Nairametrics previously reported that the NMDPRA had said it is “exploring pathways for establishing a credible African reference price benchmark” that reflects regional market realities and supports transparent pricing mechanisms.

• In Nigeria, the NMDPRA is proposing new rules that would prohibit petroleum companies from coordinating fuel prices, restricting supply, or engaging in market-sharing arrangements that distort competition across Nigeria’s midstream and downstream oil and gas sector.
• The proposal is contained in the newly released Midstream and Downstream Petroleum Prevention of Anti-Competitive Practices and Behaviour Regulations, 2026, a draft framework designed to strengthen competition, prevent abuse of market power, and ensure a more transparent and competitive petroleum market.

The NMDPRA, in a public notice issued on August 6, invited licensees, permit holders, and other stakeholders to submit comments on the proposed regulations within 21 days, in line with Section 216(1) of the Petroleum Industry Act (PIA) 2021, which requires stakeholder consultation before regulations are finalised.

According to Part IV of the draft regulations on Collusive Agreements and Anticompetitive Coordination, the Authority is seeking to prohibit any form of coordinated behaviour among petroleum companies that could undermine competition.

What you should know

In 2025, the House of Representatives disclosed that the enactment of the Petroleum Industry Act (PIA) 2021 had yielded remarkable results, attracting more than $16 billion in investment commitments and significantly improving oil production.

Deputy Speaker Benjamin Kalu said that, based on available data at the time, Nigeria earned N50.88 trillion in revenue from crude oil and gas exports in 2024.