Nigeria’s oil regulator says West Africa needs to stop relying on foreign markets to set fuel prices and start creating a system that works for the region’s unique realities.

Speaking at an energy conference in Abuja, the head of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, called for the creation of a regional fuel price index. He said most West African countries still depend heavily on fuel imports — about 69% of gasoline in the region comes from outside Africa — despite growing local refining capacity.

“We need to stop using benchmarks from Europe and the US that don’t reflect what it actually costs to get fuel across Africa,” Ahmed said. “Let’s build something that works for us.”

Countries like Nigeria, Ghana, Senegal, and Côte d’Ivoire now have refineries producing over 1.3 million barrels a day. Still, West Africa continues to rely on price references from places like the US Gulf Coast and Northwest Europe. Ahmed believes this is holding the region back, especially when it comes to attracting investments in refining and distribution.

According to 2025 data, West Africa trades around 2.05 million metric tonnes of gasoline monthly — but only 31% of that comes from regional refineries. The rest is imported.

To change this, NMDPRA is teaming up with global energy firm S&P Global to develop fuel price indices tailored to West Africa. The project will cover petrol, diesel, aviation fuel, and cooking gas.

Ahmed also highlighted Nigeria’s position as a future fuel distribution hub, pointing to major projects like the Dangote Refinery and upgrades to seaports and pipelines. He said Nigeria’s ongoing oil sector reforms are already attracting more investment.

“This is about building a fuel market that reflects African costs, African demand, and African potential,” he said.