In a move to boost energy independence and regional integration, West African nations under the Economic Community of West African States (ECOWAS) have set a collective timeline to transform the sub-region into a central refining hub.
Prof. Zainab Gobir, Executive Director in charge of Economic Regulations and Strategic Planning, NMDPRA, said this on Wednesday in Abuja, while presenting the outcome of a two-day Global Commodity Insights Conference on the West African Refined Fuel Market.
The NMDPRA and the S&P Global convened the conference.
The strategic initiative aims to reduce reliance on imported petroleum products, create jobs, and strengthen local capacity through coordinated investment in refining infrastructure.
Gobir said the essence of the timeline and agreements was to ensure that operational refineries steadily operate at optimal output to fulfil West Africa’s demand for refined products.
The executive director stated that the harmonised regional market framework, regulatory policy, and incentives were expected to attract investment, adding that the conference had developed a roadmap from 2025 to 2030.
She stated that a stiff penalty would be imposed for non-performance in all countries of the West African sub-region, ensuring that all licensed refineries were committed to their obligations.
Gobir said that the conference also adopted measures to protect domestic refineries from unfair international competition and to dismantle and reform structures and systems.
According to her, there is a unanimous call for regulatory alignment and the adoption of a harmonised, transparent, and robust refining product market pricing.
She described the Dangote Refinery as a game-changer in the market, where other functional upcoming refineries in West Africa were also changing the dynamics of defining product markets in the region.
She listed the development finance institutions to include the African Finance Corporation, Afrexim Bank, the African Energy Bank and private investors.
Gobir said for S&P Global Insights, it was resolved that the organisation include an update on the West Africa infrastructure development in its West African market status and development updates.
Speaking, Mr Farouk Ahmed, NMDPRA Chief Executive, noted that three hubs with pricing benchmarking potential were currently available.
He stated that West Africa had five locations, noting that S&P Global Insights had agreed to collaborate with the authority to help establish a hub in Nigeria.
According to him, the trade hub will indirectly address the issue of energy security due to the business activities on the shores.
