By Obas Esiedesa, Abuja

West Africa Regulators Forum (WARF) has called for the setting up a regional pricing benchmark for refined petroleum products, arguing that the continent should no longer depend on international markets to determine the value of commodities produced within Africa.

Speaking in Abuja ahead of the second West Africa Refined Fuel Conference, the Chairman of WARF and Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Rabiu Umar, said developing a transparent regional pricing mechanism would strengthen market confidence, improve cross-border trade and attract investment into the downstream petroleum sector.

Umar said although Africa produces significant volumes of crude oil and natural gas, prices for much of its petroleum products are still determined outside the continent.

He noted that the conference, organised in collaboration with S&P Global Commodity Insights and the West Africa Regulators Forum (WARF), seeks to build a credible regional marketplace where petroleum products can be traded efficiently, transparently and competitively.

“The vision is to establish West Africa as a credible regional marketplace where petroleum products can be traded efficiently, transparently and competitively,” he said.

“By strengthening infrastructure, harmonising regulations and improving market data, the region can enhance price discovery, facilitate cross-border trade and attract greater investment.”

According to him, the conference, scheduled for August 11 and 12 in Abuja, is themed, “Funding West Africa Infrastructure & Distribution to Create a Transparent Market for Regional Price Benchmarks.”

It will bring together regulators, investors, financial institutions and industry leaders to identify practical solutions for financing infrastructure and logistics needed to support a regional petroleum trading hub.

Umar disclosed that significant progress had been made since the maiden edition of the conference in 2025, including the establishment of the West Africa Regulators Forum, publication of West African reference prices and the opening of S&P Global Commodity Insights’ regional office in Abuja.

He said this year’s edition would focus on infrastructure financing, regional cooperation, market transparency, logistics development and strategies for expanding refining capacity to enhance energy security and reduce dependence on imported petroleum products.

He identified investments in pipelines, petroleum storage facilities, marine terminals, ports, rail infrastructure, digital commodity exchanges, trading platforms, strategic petroleum reserves, LNG infrastructure and logistics corridors as critical to creating an integrated regional market.

He added that opportunities also exist across the gas value chain, including gas processing, transportation, liquefaction and compression.

The NMDPRA chief stressed that regulators have a critical role in creating an enabling environment for fair competition, investor confidence, consumer protection and regional cooperation.

He noted that harmonised standards and regulations would facilitate seamless cross-border trade while improving market efficiency across West Africa.

Umar defended the campaign for a regional petroleum products pricing benchmark, saying all major energy markets operate pricing indices that reflect their local market realities.

He cited the Amsterdam-Rotterdam-Antwerp trading hub in Europe as an example of a regional benchmark that takes account of supply, demand, transportation and logistics costs.

“The more we are able to produce, the more relevant it becomes to have our own reference pricing,” he said.

He also stressed that infrastructure remains the backbone of regional energy integration, noting that pipelines, ports and storage facilities are essential for moving petroleum products efficiently across borders.

He cited the West African Gas Pipeline as an example of infrastructure supporting regional energy trade and called for similar investments across the downstream petroleum value chain.

Umar further advocated harmonisation of petroleum product specifications across African countries to facilitate regional trade, saying engagements involving the Africa Refiners Association and other stakeholders were already yielding progress.

He added that petroleum products supplied from Nigeria meet high quality standards, with sulphur content not exceeding 50 parts per million, while increased domestic refining is strengthening supplies within Nigeria and supporting exports to neighbouring countries.