Efforts to transform West Africa into a regional hub for refined petroleum products are gaining momentum as countries in the sub-region prepare to sign a harmonised refinery regulatory framework by the fourth quarter of 2025. The announcement was made by Prof. Zainab Gobir, Executive Director of Economic Regulations and Strategic Planning at the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Gobir made this disclosure in Abuja while presenting the outcomes of the Global Commodity Insights Conference on the West African Refined Fuel Market, co-hosted by the NMDPRA and S&P Global. The conference brought together regulators, industry leaders, and financial stakeholders to map out a unified strategy for the region’s refining future.
Harmonised Policy Framework to Attract Investment
At the heart of the proposed regulatory alignment is a shared commitment among West African countries to adopt common policies, standards, and incentives to promote investment in greenfield refinery projects. According to Gobir, the framework will include enforceable obligations to ensure all operational refineries maintain optimal production levels to meet the region’s growing demand for refined petroleum products.
“All member states are expected to abide by the agreements,” she emphasized. “There will be stiff penalties for non-performance to ensure compliance and commitment among licensed refineries.”
The policy is expected to run on a short-to-medium term timeline, with a coordinated roadmap from 2025 to 2030. The NMDPRA says the harmonised structure will not only enhance supply reliability but also shield local refineries from unfair global competition through transparent pricing and domestic protection measures.
Dangote Refinery Seen as a Catalyst
The Dangote Refinery in Nigeria was cited as a transformational asset for the region. Its massive production capacity, alongside other emerging refineries in West Africa, is expected to change the dynamics of refined product markets and reduce dependency on fuel imports from Europe and Asia.
Gobir noted that the emergence of new refining capacity makes regional alignment not just desirable but necessary. "We are at a turning point. The Dangote facility and others are game changers that require us to rethink and synchronise our regulatory approach,” she said.
Financing Infrastructure and Supporting Institutions
To support infrastructure gaps, the conference urged regional financial institutions and private investors to create tailored financing instruments. These would support refinery development, transport networks, and storage systems essential for a fully functional regional supply chain.
Among the institutions tasked with driving this financing push are the African Finance Corporation, Afrexim Bank, the African Energy Bank, and other private investors. Their involvement is seen as vital to closing investment gaps in the short term.
S&P Global was also charged with updating its West African market status reports to include progress on infrastructure development and refinery capacity expansion.
Nigeria Poised to Lead as Pricing Hub
In his remarks, NMDPRA Chief Executive Farouk Ahmed revealed that West Africa currently has five potential refining hubs, and Nigeria is well positioned to emerge as the region’s key pricing benchmark location. According to Ahmed, S&P Global has agreed to collaborate with Nigeria to develop such a hub, which will not only enhance transparency but also serve as a strategic platform for regional energy security.
“The trade hub will indirectly address the issue of energy security through increased business activities across our coastal areas,” he said.
As West African nations gear up for regulatory unification and market restructuring, Nigeria’s central role and institutional leadership are expected to shape the success of the sub-region’s ambition to become a global refining hub.