By Blessing J. Emmanuel
Despite growing refining capacity in Nigeria and across West Africa, nearly seven out of every ten litres of petrol consumed in the region is still imported, the head of Nigeria’s petroleum regulatory agency has revealed.
Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, made the disclosure in Abuja at the Global Commodity Insights Conference on West Africa’s refined fuel market, jointly hosted with S&P Global Commodity Insights.
According to Ahmed, West Africa currently imports 69% of its gasoline, amounting to about 1.44 million metric tonnes monthly, while only 31% (0.61 million MT) comes from domestic and regional refineries.
“Our 2025 data shows that 2.05 million metric tonnes of gasoline are traded monthly in the region — but 69% of that still comes from overseas,” Ahmed stated.
He said that although countries like Nigeria, Ghana, Niger, Senegal, and Côte d’Ivoire now produce up to 1.335 million barrels per day, the region still depends heavily on global markets for refined petroleum.
The NMDPRA boss expressed concern that West Africa still uses pricing benchmarks from far-off regions like Northwest Europe, the US Gulf Coast, Singapore, and the Arab Gulf, even though it produces its own crude.
“These global benchmarks don’t reflect our local supply realities, logistics costs, or market dynamics,” he noted.
Ahmed stressed that creating a regional fuel price index is now essential for transparency, better investment, and more reliable energy supply.
Highlighting reforms under President Bola Tinubu, Ahmed said Nigeria has implemented the Petroleum Industry Act (PIA) 2021 and liberalised the downstream sector, encouraging private investment in refineries and fuel distribution.
He cited projects like the Dangote Refinery and the ongoing rehabilitation of state-owned refineries as signs of a refining boom that will reduce import dependence.
“With our deep seaports, improved maritime infrastructure, and strategic location, Nigeria is emerging as a fuel hub for West Africa,” he said.
To help transform the fuel pricing system, Ahmed announced a partnership with S&P Global Commodity Insights to develop price indices for key products like petrol (PMS), diesel (AGO), aviation fuel (ATK), and LPG.
“This partnership will help create real-time, transparent pricing tailored to Africa’s fuel market,” he said, adding that the goal is to attract more investments in storage, refining, and fuel infrastructure.
Reacting to the conference on social media, President Bola Tinubu called on African nations to take control of their energy markets and “stop being passive price takers.”
“Africa can no longer be a price taker for its own resources. We must create credible benchmarks that reflect our realities,” Tinubu said via his official X (formerly Twitter) handle.
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He also pledged that Nigeria will continue working with other African nations to create a transparent, integrated energy market that rewards African production and supports cross-border growth.
“We must price what we produce, trade on our terms, and protect the value of our resources for future generations,” Tinubu declared.
