Chairman of the House Committee on Petroleum Resources (Downstream), Rep. Ikenga Ugochinyere, has pledged legislative backing for efforts to establish a transparent and independent pricing benchmark for refined petroleum products across West Africa.
Ugochinyere made the commitment on Tuesday at the West Africa Refined Fuel Market 2026 Conference in Abuja, organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The conference was held under the theme, “Funding West Africa Infrastructure and Distribution to Create a Transparent Market for Regional Price Benchmarks.”
The lawmaker said the region’s growing refining capacity had made it necessary for West Africa to develop a reliable benchmark capable of reflecting local market realities.
According to him, West Africa has for decades remained a “price taker” despite being one of the world’s major consumers of refined petroleum products.
He said the region had traditionally relied on importing both fuel and international price signals, resulting in additional costs for consumers and businesses.
Ugochinyere said the National Assembly would collaborate with the NMDPRA and the West Africa Regulator Forum to provide the necessary legal backing for the proposed pricing system.
He stressed that a voluntary framework would not be sufficient to guarantee the credibility and sustainability of the benchmark.
The lawmaker noted that developments in Nigeria’s downstream petroleum sector, particularly the emergence of the 650,000-barrels-per-day Dangote Refinery, the ongoing rehabilitation of the Port Harcourt, Warri and Kaduna refineries, and reforms introduced under the Petroleum Industry Act (PIA), had significantly altered the regional fuel market.
He argued that as West Africa increasingly develops the capacity to refine petroleum products, it must equally develop the ability to determine their prices.
“A region that refines must price. A region that prices must have a benchmark. A benchmark that is not ours will be someone else’s,” he said.
Ugochinyere identified liquidity, deliverability, data integrity and trust as key pillars required to establish a credible regional fuel pricing benchmark.
He also highlighted the need for greater investment in storage terminals, jetties, pipelines, depots, metering systems, as well as road and rail infrastructure for the efficient movement of petroleum products.
According to him, strengthening the region’s physical infrastructure would improve price discovery, boost market transparency and enhance investor confidence.
He said an effective West African benchmark would enable the region to move away from dependence on external markets and take greater control of how its petroleum market is valued.
The News Agency of Nigeria (NAN) reports that Nigeria is spearheading a regional initiative to establish an independent West African fuel price benchmark.
The initiative, driven by the NMDPRA, seeks to reduce reliance on external pricing indices linked to markets in Western Europe and the Mediterranean by creating a transparent pricing mechanism based on regional market conditions.
The proposed benchmark is expected to improve transparency, strengthen regional trade and provide a more accurate reflection of the cost and value of refined petroleum products within West Africa.
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