Despite significant investments in refining infrastructure across West Africa, the region continues to rely heavily on imported petroleum products, with nearly 69 per cent of its gasoline supply sourced from overseas markets. This was disclosed by the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, at the Global Commodity Insights Conference in Abuja.
Ahmed revealed that 2.05 million metric tonnes (MT) of gasoline are traded monthly in West Africa, with 1.44 million MT (69%) imported and only 0.61 million MT (31%) supplied by regional refineries. This trend persists despite Nigeria, Ghana, Niger, Senegal, and Côte d’Ivoire collectively boosting refining capacity to 1.335 million barrels per day.
He said, “The regional supply of fuels in West Africa has grown through improved refining capacities, but our data for 2025 still shows overwhelming reliance on imported fuel.”
The NMDPRA boss lamented that pricing benchmarks for the region remain dependent on foreign markets such as Northwest Europe, the U.S. Gulf Coast, Singapore, and the Arab Gulf, which do not reflect Africa’s logistics and economic realities.
Ahmed stressed the urgent need for a West African price index to improve transparency, market development, and energy security.
“As a region, we must define our own pricing reality. Establishing a regional price index will not only improve price discovery but also attract investments and strengthen supply chains,” he said.
To this end, NMDPRA is collaborating with S&P Global Commodity Insights to develop regional benchmarks for refined petroleum products, including Premium Motor Spirit (PMS), Automotive Gasoil, Aviation Turbine Kerosene, and Liquefied Petroleum Gas (LPG).
Highlighting Nigeria’s ongoing reforms, Ahmed said the implementation of the Petroleum Industry Act (PIA) 2021 and downstream sector liberalisation under President Bola Tinubu have made the country a favourable investment destination.
“Nigeria’s deep seaports, improved maritime infrastructure, and active coastline strategically position it as a fuel distribution hub for West Africa,” he noted. The Dangote Refinery and rehabilitation of state-owned refineries are expected to significantly boost local production, reducing import dependence in the near future.
Citing the OPEC World Oil Outlook, Ahmed said Africa is projected to add 1.2 million barrels per day of refining capacity between 2025 and 2030, with West Africa expected to play a significant role.
“The proposed regional benchmark will promote market confidence, attract more investment in storage and supply infrastructure, and ensure real-time price visibility for operators,” he added.
Tinubu: Africa Must Stop Being a ‘Price Taker’
President Tinubu, in a post on his X handle, stressed that Africa must end its passive role in global energy pricing.
“Africa can no longer remain a price taker for its resources. We must establish credible, transparent benchmarks that reflect our realities,” Tinubu said.
He emphasised that Nigeria is working with regional partners to build an integrated market that rewards African production, ensures energy access, and drives cross-border prosperity.
“This is how we take ownership of our value. We must price what we produce, trade on our terms, and secure value for our economies and future generations,” he added.
As Nigeria pushes for regional energy pricing autonomy, analysts believe the combination of increased refining capacity, regulatory reforms, and new pricing indices could transform West Africa’s fuel market. However, achieving energy independence will depend on the timely completion of key refinery projects and consistent policy implementation.