Nigeria partners with S&P Global to launch regional petroleum price index for West Africa.
Nigeria announced a strategic partnership with S&P Global Commodity Insights to create a petroleum pricing index for West Africa. Launched at the West African Refined Fuel Conference in Abuja, the initiative aims to deliver localized benchmarks for petrol, diesel, aviation fuel, and LPG .
Nigeria’s Midstream and Downstream Petroleum Regulatory Authority acknowledged that global benchmarks do not reflect regional market conditions. A localized index could improve transparency in pricing and attract investment, countering inefficiencies in the supply chain.
As Africa’s top crude producer and an OPEC member, Nigeria is expanding its downstream sector. With the Dangote refinery in Lagos now active at 650,000 bpd, Nigeria currently handles about 31% of West Africa's refined fuel—an output projected to increase.
The index is expected to tighten energy security, reduce price volatility, and potentially lower pump prices. However, its success hinges on data integrity, regulatory oversight, and stakeholder buy-in across the region.
I’m Adedayo Obadina
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