Latest news with #FaroukAhmed
Zawya
13 hours ago
- Business
- Zawya
Nigeria: 69% of West Africa's petrol supply still imported — NMDPRA boss
The chief executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, has disclosed that 69% of West Africa's petrol supply is still imported. Speaking at the Global Commodity Insights Conference on West Africa's refined fuel market held in Abuja on Tuesday, Ahmed revealed that nearly 69 percent of gasoline consumed in the region is still sourced from overseas, highlighting continued reliance on external supply chains. Ahmed stated, 'Our 2025 statistical data for West Africa's petrol supply reveals that 2.05 million MT per month of gasoline is being traded, consisting of 1.44 million MT (69 percent) imports and 0.61 million MT (31 percent) refinery contribution from the region.' The conference, jointly organised by the NMDPRA and S&P Global Commodity Insights, provided a platform to address critical issues affecting the regional fuel market. Ahmed noted that West Africa's growing refining capacity, currently standing at 1.335 million barrels per day from countries including Nigeria, Ghana, Niger, Senegal, and Côte d'Ivoire, has yet to significantly reduce the region's dependence on imports. 'The regional supply of fuels in West Africa has grown through improved refining capacities in Nigeria, Ghana, Niger, Senegal and Côte d'Ivoire,' he said. 'However, despite these gains, we remain overly reliant on external sources.' He also criticised the continued use of foreign pricing benchmarks by the region, citing their inadequacy in reflecting local realities. 'These global benchmarks do not fully reflect the unique supply chain peculiarities, logistics costs, and economic realities of the African continent,' he noted. According to him, the lack of a regional pricing benchmark has stifled investment and hampered transparency and efficiency in the supply chain. 'As a region, we must begin to define our own pricing reality. Establishing a regional price index will not only improve price discovery and transparency but also deepen market development and enhance energy security,' he stressed. Ahmed praised Nigeria's reform efforts under President Bola Tinubu's administration, especially the implementation of the Petroleum Industry Act (PIA) 2021 and downstream sector liberalisation, which he said have improved the investment climate. 'These reforms are attracting investment into trade zones, digital market platforms, and refining projects,' he added. 'Nigeria is fast emerging as a key midstream and downstream trade and logistics centre for the entire West African coast.' He pointed to the country's improved maritime infrastructure, deep seaports, and active coastline as critical assets positioning Nigeria as a potential fuel distribution hub across the region. 'Nigeria's refining sector is undergoing massive transformation, with projects like the Dangote Refinery and ongoing rehabilitation of state-owned refineries expected to boost local production significantly,' he said. Citing the OPEC World Oil Outlook, Ahmed said Africa is projected to add 1.2 million barrels per day of refining capacity between 2025 and 2030, with West Africa expected to contribute significantly. To support the growth of the regional market, Ahmed announced that the NMDPRA is collaborating with S&P Global Commodity Insights to develop price indices for refined petroleum products such as Premium Motor Spirit (PMS), Automotive Gasoil, Aviation Turbine Kerosene, and Liquefied Petroleum Gas (LPG). 'Our partnership with S&P Global aims to leverage their world-class market intelligence and our regulatory experience to launch pilot indices tailored to the West African energy market,' he explained. He said the proposed benchmark would improve real-time price visibility across the value chain, enhance investor confidence, and encourage more investment in storage and supply infrastructure. 'We are committed to building a transparent, data-driven market that reflects the true cost and value of fuel within West Africa,' he concluded.
Business Insider
19 hours ago
- Business
- Business Insider
Dangote exposes black market fuel cartels undermining refinery development in Africa
Speaking at the Global Commodity Insights Conference on West Africa organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in partnership with S&P Global in Abuja, Dangote warned that these shadow networks are undermining efforts to build local refinery infrastructure by manipulating prices and supply chains with emphasis on the maritime fuel trade centered around Lome, Togo. He explained that international traders have long exploited the lack of refining capacity in Africa by storing and selling imported refined petroleum products offshore at inflated prices. ' The market is a uniquely African phenomenon, ' he said. ' International traders maintain floating storage of about two million tonnes of petroleum products just offshore. These were being sold at inflated prices, given the lack of local refining capacity. Immediately, the Dangote Refinery became operational, they decided to crash the prices.' Dangote argued that the move was deliberate. ' Make no mistake, those who profit from this system will do everything they can to prevent other refineries from emerging." "The whole essence of Lome is to ensure that no refinery operates in Sub-Saharan Africa. In fact, I don't see any new major refining project succeeding with the offshore Lome market in existence.' He warned that these shadow networks manipulate supply chains and undercut prices, ultimately deterring investment in large-scale refining infrastructure. ' We cannot continue to allow a parallel oil economy to dictate the fate of Africa's energy self-sufficiency, ' Dangote said. Africa's push for fuel sufficiency Dangote's comments come amid renewed efforts by African leaders to attract private capital into local refining infrastructure in order to reduce dependency on foreign fuel imports and retain more value within the continent. Despite efforts to expand refining capacity, Nigeria and other West African nations still import nearly 69% of their gasoline, according to Farouk Ahmed, head of Nigeria's Midstream and Downstream Petroleum Regulatory Authority. In 2025, West Africa trades approximately 2.05 million metric tonnes of gasoline each month, yet only 31% is supplied by local refineries. Despite the region's position as a major hydrocarbon producer and a growing refining hub, it continues to depend heavily on fuel imports from Europe, the Middle East, and Asia. Africa's push for fuel self-sufficiency is driven by strategic reforms, infrastructure investments, and policy changes aimed at reducing reliance on imported petroleum products. . Aliko Dangote pointed to a major challenge undermining progress: the lack of harmonised fuel standards across African countries. Unlike Europe's unified system, each African nation maintains its own specifications.
Zawya
2 days ago
- Business
- Zawya
Nigeria partners with S&P Global for West African petroleum price index
Nigeria has partnered with S&P Global Commodity Insights to develop a regional pricing benchmark for refined petroleum products in West Africa, the country's downstream regulator said on Tuesday. The initiative, launched at the West African Refined Fuel Conference in Nigeria's capital Abuja, aims to create localised indices for products such as petrol, diesel, aviation fuel and liquefied petroleum gas. West Africa is a significant oil and gas producer as well as a growing refining hub. But it is currently dependent upon posted prices from global reference markets, said Farouk Ahmed, head of Nigeria's Midstream and Downstream Petroleum Regulatory Authority. "While these benchmarks are globally accepted, often they do not reflect the unique supply chain peculiarities, market dynamics and economic realities of the African continent," Ahmed said. The partnership will improve price transparency, support investment decisions and enhance energy security across the region, he added. OPEC member Nigeria, Africa's largest crude producer, is implementing reforms to liberalise its downstream sector as it positions itself as a regional trading hub. The Dangote petroleum refinery in the commercial capital Lagos, for example, with refining capacity of 650,000 barrels per day, started operations last year and has been ramping up production and seeking new markets. Nigeria currently produces some 31% of the refined fuel traded in West Africa, with that share expected to grow as new refining projects come online. (Reporting by Isaac Anyaogu; Editing by Joe Bavier)
Reuters
2 days ago
- Business
- Reuters
Nigeria partners with S&P Global for West African petroleum price index
LAGOS, July 22 (Reuters) - Nigeria has partnered with S&P Global Commodity Insights to develop a regional pricing benchmark for refined petroleum products in West Africa, the country's downstream regulator said on Tuesday. The initiative, launched at the West African Refined Fuel Conference in Nigeria's capital Abuja, aims to create localised indices for products such as petrol, diesel, aviation fuel and liquefied petroleum gas. West Africa is a significant oil and gas producer as well as a growing refining hub. But it is currently dependent upon posted prices from global reference markets, said Farouk Ahmed, head of Nigeria's Midstream and Downstream Petroleum Regulatory Authority. "While these benchmarks are globally accepted, often they do not reflect the unique supply chain peculiarities, market dynamics and economic realities of the African continent," Ahmed said. The partnership will improve price transparency, support investment decisions and enhance energy security across the region, he added. OPEC member Nigeria, Africa's largest crude producer, is implementing reforms to liberalise its downstream sector as it positions itself as a regional trading hub. The Dangote petroleum refinery in the commercial capital Lagos, for example, with refining capacity of 650,000 barrels per day, started operations last year and has been ramping up production and seeking new markets. Nigeria currently produces some 31% of the refined fuel traded in West Africa, with that share expected to grow as new refining projects come online.
Reuters
15-04-2025
- Business
- Reuters
Nigeria plans petroleum products stockpile to counter global supply shocks
LAGOS, April 15 (Reuters) - Nigeria plans to establish a national strategic petroleum products stockpile this year to safeguard its economy against disruptions in the international market, the petroleum products regulator said at a press briefing on Tuesday. Farouk Ahmed, head of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, said the reserve, which the country's oil law mandates, would mitigate supply shocks and enhance the nation's energy security. Nigeria, despite its oil wealth, frequently experiences fuel shortages and long queues. The country aims to use expanding domestic refining capacity, particularly the 650,000-barrel-per-day Dangote Refinery, to build resilience against global supply fluctuations. While Nigeria currently maintains petroleum products reserves to cover approximately 30 days of supply, Ahmed said the new National Strategic Stock, modelled on the United States' Strategic Petroleum Reserve, would be significantly larger. He did not specify the volume of the planned reserves. Nigeria's Petroleum Industry Law mandates the regulator to issue a bulk petroleum liquids storage licence to private depots that can hold products for as long as needed. Startup of the Dangote Refinery in September, along with five smaller refineries, has significantly reduced Nigeria's gasoline imports from 50.8 million litres per day in September to 28.7 million litres per day last month. Data from the regulator indicate that currently operational local refineries are projected to process 770,500 bpd until June. The regulator expressed optimism that refining expansion could eventually eliminate the need for gasoline imports.
