Industrial oil refinery with complex piping and processing units at Dangote Refinery, Nigeria.
West African energy regulators are accelerating efforts to establish a regional fuel pricing benchmark and trading hub, encouraged by Nigeria’s Dangote Refinery. Nigeria’s Midstream and Downstream Petroleum Regulatory Authority says the refinery’s 2024 launch is reshaping regional supply chains and strengthening the case for the continent to play a greater role in determining petroleum prices. The regulator also said that the proposed market could improve regional liquidity and reduce dependence on foreign benchmarks. However, major obstacles remain, including limited infrastructure, weak logistics, and insufficient market transparency, which could undermine the hub’s credibility. To resolve this, officials advocate investment in pipelines, storage facilities, marine transportation, and digital trading systems. Regulators also urged countries across the region to harmonize fuel standards, licensing requirements, and trade rules to reduce the costs associated with regulatory fragmentation.