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Europe, Mediterranean Crises Shouldn’t Affect Africa’s Petroleum Price Benchmark – FG
The Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority, has said crises in Western Europe and the Mediterranean should not automatically determine petroleum product prices in Nigeria and other African countries, arguing that West Africa needs a regional benchmark that reflects its own market realities.
It said West Africa could no longer afford a situation where disruptions in Western Europe or the Mediterranean automatically influence the prices of petroleum products in African markets, even when the factors behind those disruptions have little or nothing to do with the region.
The Authority Chief Executive, Rabiu Umar, said this on Tuesday at the second West Africa Refined Fuel Market Conference in Abuja, where regulators, refiners, traders, financiers and other industry stakeholders renewed efforts to establish a transparent regional pricing system for refined petroleum products.
The conference is jointly hosted by the Authority, S&P Global Commodity Insights and West Africa Regulator Forum, with the theme: “Funding West Africa Infrastructure & Distribution to Create a Transparent Market for Regional Price Benchmarks.”
The conference is aimed at moving the region from discussions about price discovery to the actual development of a functioning petroleum trading and pricing hub.
Umar said the continued use of external price references meant that petroleum consumers in Nigeria and other West African countries could be affected by disruptions that occurred thousands of kilometres away and were unrelated to the fundamentals of their own markets.
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He said the situation was no longer sustainable, particularly as West Africa’s refining landscape was changing rapidly and Nigeria was emerging as a major supplier of refined petroleum products to the region.
The NMDPRA boss, who also doubles as the WARF Chairman, said, “If we look at the refining capacity on the continent and how it has been increasing, it simply doesn’t make sense that if there is a problem in Western Europe or in the Mediterranean, it is going to affect our pricing in Africa.
“There may be issues which have absolutely nothing to do with what is going on here. And prices should be determined on the basis of geopolitical issues, demand and supply, and complexities within the market. So we feel this is a great opportunity for Africa, and West Africa in particular, to really have something that is specific to us. If we have a problem, it is reflected in the pricing. If we don’t have a problem, then we are to be shielded to an extent, I would say, from what is going on in other locations.”
The call comes against the backdrop of renewed volatility in international energy markets following the crisis around the Strait of Hormuz, one of the world’s most important oil shipping routes. The latest tensions around the strait have pushed Brent crude sharply higher, with the benchmark reaching above $90 per barrel at points in recent days before easing as markets weighed diplomatic efforts between Iran and Oman.
That distinction, he argued, is at the heart of the campaign for a West African reference market.
He said, “If we look at the refining capacity on the continent and how it has been increasing, it simply doesn’t make sense that if there is a problem in Western Europe or in the Mediterranean, it is going to affect our pricing in Africa. There may be issues which have absolutely nothing to do with what is going on here in the continent. But prices are determined on the basis of geopolitical issues, demand and supply, and complexities within the market. So we feel this is a great opportunity for Africa, and West Africa in particular, to really have something that is specific to us.
“If we have a problem, it is reflected in the pricing. If we don’t have a problem, then we are shielded to an extent, I would say, from what is going on in other locations.”
He explained that the roadmap required reliable financing, refinery capacity, stronger logistics and storage networks, interconnected ports, roads, rail and pipelines, harmonised product regulations and standards, transparent and comparable market data, stronger cross-border cooperation and the mobilisation of regional and international capital.
“A reference price is not by itself a trading hub. A conference is not a market. Regulatory cooperation, important as it is, cannot substitute for physical infrastructure, commercial liquidity, market information, and operational excellence on which a credible trading hub must stand. Africa possesses resources. Africa possesses demand. Africa possesses refining capacity, and that is also expanding. What we must now build is the infrastructure that efficiently connects all three”, he added.
Umar also urged West African countries to stop duplicating infrastructure and instead develop assets based on their comparative advantages.
He said, “This is also why we must think regionally. Not every country needs to replicate every asset that we have. So for example, Nigeria today stands as one of the most tanked countries. If you look at the number of tanks we have versus the consumption that we have, there is absolutely no point.
“If you look at Europe, for example, our region is a trading hub for oil and gas, for all the refined products. Why? The other countries could also have invested in similar infrastructure, which would have led to duplication. The most important thing is what each country’s specific advantage is relative to the region, so that way everybody is doing what they are really, really good at. And this is why we must think regionally. We have to think regionally.”
He also identified differences in petroleum product specifications across countries as another major obstacle to cross-border trade. According to him, varying specifications make it difficult to move products seamlessly from one West African market to another and undermine the development of a single regional market.
“We also have the second issue of what is the quality of products. What is the specification of products from one country to another? We cannot have from here to Nigeria, to Ghana, to the United Republic, even our right-next-door neighbours having different products and specifications. What that does is that it makes trading across the border very, very difficult.”
Umar said regional integration would therefore help optimise existing infrastructure, reduce duplication and direct scarce capital towards projects capable of delivering the greatest regional impact.
“Capital will go where projects are bankable. Risks are understood, regulation is predictable, and returns can be sustained. Our responsibility as governments, regulators, and players is therefore to create the conditions that allow capital to move confidently. For investors, predictability matters. For operators, efficiency matters. For consumers, affordability matters, and reliability. For regulators, safety, integrity, competition, and compliance matter. A sustainable market must accommodate all four”, he stated.
The NMDPRA boss further identified reliable market data as a critical requirement for credible regional price discovery.
He said a benchmark could not be trusted if it was based on an opaque market with limited transactions and unreliable information on supply, demand, inventories and product availability.
“A credible benchmark cannot emerge from an opaque market. Price discovery requires sufficient transactions, willing participants, reliable reporting, and confidence that market information indeed reflects actual commercial activity.
“We must therefore develop a culture in which reliable information on supply, demand, inventories, infrastructure, availability, and legitimate transactions can support better commercial decisions and effective regulation.”
He said the West Africa Regulators Forum had a major role to play in creating an environment where different national markets could operate with sufficient regulatory compatibility to facilitate cross-border trade.
“We do not need every country to have identical laws. We need sufficient compatibility to allow trade to occur safely, transparently, and efficiently. And this is the difference, really, between regulatory uniformity and regulatory integration.”
Umar said the regional roadmap beyond 2026 would focus on five key areas, including improving physical market mobility, financing strategic infrastructure, optimising product standards and regulations, strengthening market data and transparency, and building a complete trading ecosystem.
He said a mature regional market would require refiners, traders, terminal operators, ship owners, marketers, banks, insurers, commodity exchanges, data providers and regulators to operate within an environment of commercial trust.
“And when these elements come together, the benchmarks will learn to be imposed. The market itself will produce the benchmark,” he said.
He said the ultimate objective was to transform West Africa from a region that largely consumes petroleum products priced elsewhere into an increasingly influential centre of price discovery, trading, investment and value creation.
“In 2025, we developed the roadmap. In 2026, we must finance and execute it. In the years ahead, our major success must be a West African market in which products move more efficiently, supply is more secure, investors have greater confidence, regional trade expands, and prices increasingly reflect the fundamentals of our own markets.”
Courtesy – The Punch
Ingentia Energies Limited has said it is targeting an expansion of its drilling operations after increasing its oil production by 150 per cent under the leadership of Engr Charles Odita as the company’s acting Chief Executive Officer.
This was disclosed in a statement signed by the Chairman of the Board, Chief Oseni Elamah, following a meeting in Lagos attended by Agbaroji and the outgoing CEO, Odita, after Victor Agbaroji assumed office as the company’s new Managing Director and CEO.
The board commended Odita for what it described as transformational leadership, noting that “production increased by 150 per cent during his tenure, from 2,200 barrels per day”.
Elamah extended congratulations and appreciation to Odita, describing his tenure as transformational and characterised by strategic clarity, decisive execution and exceptional leadership.
Agbaroji, who succeeded Odita, expressed appreciation for the achievements recorded under his predecessor and pledged to build on the foundation already established.
He identified enhancing drilling operations, maximising the value of existing assets, improving cost competitiveness, expanding the company’s portfolio and unlocking greater value from its gas resources as key priorities for the next phase of growth.
“Our immediate focus is to strengthen the next phase of our drilling campaign by leveraging the seismic acquisition programme currently underway.
This will enable us to execute a more robust and efficient drilling programme while improving exploration outcomes and operational performance,” Agbaroji said.
He also stressed the importance of crude oil evacuation infrastructure to future production growth, saying the company would intensify efforts to advance its pipeline evacuation project.
Agbaroji reaffirmed management’s commitment to sustaining the momentum achieved under Odita, adding that the company would continue to benefit from the experience and institutional knowledge developed during his tenure.
The leadership transition is expected to consolidate Ingentia’s recent gains, expand production capacity, improve operational efficiency and strengthen its position as an indigenous energy company.
A prominent royal father has mounted a spirited defence of the Dangote Petroleum Refinery and Petrochemicals Limited (DPRP), dismissing criticisms of the Initial Public Offering (IPO) and challenging detractors to replicate its scale by raising the estimated $22 billion required to build a competing refinery.
The Emir of Kano, His Royal Highness Khalifa Muhammadu Sanusi II, on Thursday made the remarks during the DPRP’s “People’s IPO” roadshow in Kano, where he passionately advocated broader Nigerian participation in the IPO as a pathway to wealth creation and economic inclusion.
Addressing a gathering of investors, business leaders, professionals and members of the public, the former Central Bank Governor described the refinery as one of the most significant industrial projects in Africa’s history and urged Kano residents to seize the opportunity to become shareholders.
According to the Emir, equity ownership represents one of the most effective means through which ordinary citizens can participate directly in national economic growth and build long-term financial security.
“Kano is a commercial city with a long tradition of trade, investment and entrepreneurship. Our people understand business, and they should understand the value of owning shares in productive enterprises,” he said.
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Drawing from personal experience, Sanusi recounted his interactions with Aliko Dangote during his banking career in the late 1990s when Dangote Group was evolving from a trading company into a manufacturing powerhouse.
The Emir revealed that many observers at the time questioned Dangote’s strategy of deploying short-term financing to support long-term industrial investments. However, he noted that what critics considered risky was actually a demonstration of strategic foresight and a deep commitment to transforming Nigeria’s productive capacity.
Recalling the philosophy that drove the company’s industrial expansion, the monarch said the vision was anchored on a simple principle: producing domestically what Nigerians consume daily instead of relying excessively on imports.
“Somebody needs to produce the petrol for your cars, somebody needs to produce the cement for your houses, somebody needs to produce the food that you eat. We are importing these things from Asia, Europe and America. Our strategy is to produce those things here,” he stated.
The Emir described the Dangote Refinery as a game-changing investment that could fundamentally alter the structure of the Nigerian economy by reducing dependence on imported petroleum products and preserving foreign exchange.
Drawing on his experience at the nation’s apex bank, Sanusi explained that Nigeria had historically earned foreign exchange through crude oil exports only to expend a substantial portion of it importing refined fuel.
“What Aliko has done is disrupt that model,” he said.
According to him, the emergence of a world-class refinery on Nigerian soil positions the country not merely as an exporter of crude oil but as a major supplier of refined petroleum products to regional and international markets.
As evidence of the refinery’s growing global relevance, he cited reports that European airlines had sourced aviation fuel from the facility during recent supply disruptions linked to tensions around the Strait of Hormuz, underscoring its ability to compete effectively on the global stage.
Sanusi also addressed concerns raised by critics who have accused the refinery of seeking market dominance. The monarch firmly rejected such claims, arguing that competition remains open to anyone willing to undertake the financial and operational challenges associated with large-scale refining.
“There is no monopoly if a monopoly is not protected by law,” he declared.
“Anybody who wants to build a refinery, anybody who wants to raise $22 billion, invest and go through what Aliko went through is welcome to do so.”
The comment drew applause from participants at the roadshow, many of whom viewed the statement as a direct response to persistent criticism of the refinery’s market influence.
The Emir stressed that Nigeria’s economic future depends on encouraging more investments in productive industries capable of creating jobs, generating exports and strengthening local value chains. He warned against a culture that prioritises speculation and the accumulation of overseas assets at the expense of domestic industrial development.
He therefore described the Dangote Refinery IPO as a historic opportunity for millions of Nigerians to own a stake in one of Africa’s most strategic industrial assets.
“It is the shareholders who own it. It is the shareholders who take the returns. It is the shareholders who own the profits,” he said.
While encouraging broad participation, the respected traditional ruler advised prospective investors to approach the market responsibly. He urged citizens to invest only funds they could afford to commit for the long term and not resources earmarked for essential family needs.
In his closing remarks, Sanusi called on Kano residents and Nigerians generally to embrace the capital market and take advantage of the IPO, arguing that widespread ownership would democratise wealth generation and deepen public participation in national economic development.
He said broader participation in the Dangote Refinery IPO would not only reward investors financially but also strengthen local ownership of critical national infrastructure, expand financial inclusion and ensure that the benefits of industrialisation are shared more widely across the country.
“The opportunity is here. The question is whether you will participate,” the Emir told the audience.
The DPRP IPO roadshow, tagged “Kano Grand Homecoming,” brought together leading figures from Nigeria’s business, investment and financial sectors, including Aliko Dangote, President of Dangote Industries Limited; Bismarck Rewane, Managing Director of Financial Derivatives Company; Adetilewa Adebajo, CEO of CFG Advisory; and other capital market stakeholders.
Photo Caption – From Left: Emir of Kano, His Highness, Muhammadu Sanusi II (Special Guest of Honour & Chairman); President/CE, Dangote Industries Limited, Aliko Dangote, at the Dangote Petroleum Refinery IPO Roadshow tagged “Kano Grand Homecoming” in Kano on Thursday, September 17, 2026.
Nigeria’s gross foreign exchange reserves have risen to $54.61 billion in 2026, representing a $12.76 billion increase from the $41.84 billion recorded a year earlier.
The latest figure, recorded as of September, represents a 30.5 per cent year-on-year increase and continues a steady accumulation of Nigeria’s external reserves that became more pronounced from the middle of the year.
But how did Nigeria build up such a substantial reserve position within months?
Available data and analysis point to a combination of stronger oil-sector earnings, increased foreign capital inflows, diaspora remittances, non-oil export proceeds and changes in foreign exchange and monetary management.
Oil production and earnings
One of the factors supporting the improvement has been stronger crude oil production.
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Analysis of Central Bank of Nigeria (CBN) data by Nairametrics showed that reserves stood at $49.80 billion on June 1 before crossing the $50 billion mark on June 4. By July 3, the balance had risen to $51.53 billion and subsequently moved above $52 billion in August.
Earlier CBN data analysis also showed that crude oil and condensate production averaged about 1.68 million barrels per day in April, 1.73 million barrels per day in May and 1.72 million barrels per day in June, before standing at about 1.68 million barrels per day in July.
The stronger production has coincided with higher oil-sector revenues. Nairametrics reported that NNPC revenue rose from N2.57 trillion in January to N2.68 trillion in February and N2.77 trillion in March, before jumping to N4.97 trillion in April. It subsequently stood at N4.34 trillion in May, N4.39 trillion in June and N3.09 trillion in July.
Aminu Gwambe, President of the Association of Bureaux De Change Operators of Nigeria, also attributed part of the reserve improvement to higher crude oil prices and increased production.
According to Gwambe, reduced volatility in the Niger Delta and lower crude oil theft have helped improve production and, consequently, foreign exchange receipts.
Foreign capital inflows surge
Another major development has been the increase in foreign capital entering Nigeria.
Nigeria attracted $10.37 billion in foreign capital in the first quarter of 2026, representing an 83.8 per cent increase from the $5.64 billion recorded in the corresponding period of 2025, according to National Bureau of Statistics data.
Portfolio investment accounted for the overwhelming majority of the inflows, reaching $9.86 billion, or 95.09 per cent of total capital imported during the quarter.
The banking sector attracted $7.55 billion, representing 72.79 per cent of total capital imported, while the financing sector received $2.43 billion.
The United Kingdom was the largest source of the foreign capital, contributing $5.08 billion, followed by the United States with $3.18 billion and South Africa with $983.83 million.
The increase in portfolio inflows has been linked by analysts to improved conditions in Nigeria’s foreign exchange market and the attractiveness of Nigerian financial assets and yields.
However, the composition of the inflows is significant because portfolio investments can be more easily reversed than longer-term foreign direct investment.
Remittances and non-oil exports
The reserve buildup has also been linked to stronger diaspora remittances passing through official channels.
Gwambe pointed to increased remittance flows following Nigeria’s foreign exchange reforms, as well as growing dollar liquidity through licensed fintech channels.
Higher non-oil export proceeds have also contributed to the country’s foreign exchange earnings, while improvements in fiscal and monetary management have supported the broader accumulation.
These sources are important because they provide foreign exchange beyond crude oil, although their contribution must be viewed alongside the much larger role still played by oil and financial-market inflows.
Foreign investors show greater interest
Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, linked part of the improvement to stronger foreign investor confidence and increased portfolio inflows.
Yusuf said, “It takes a lot of confidence in an economy for foreign inflows to come in,” while also pointing to improving export performance.
A source at the CBN disclosed that interest from foreign investors in Nigerian government securities had increased, with the apex bank receiving enquiries from foreign investors seeking information about Nigeria’s long-term bonds.
The development suggests that some investors are showing greater interest in holding Nigerian financial assets, although the extent to which such inflows remain in the country over the longer term remains uncertain.
FX and monetary reforms
Changes in Nigeria’s foreign exchange management have also played a role in the changing external position.
Analysts have linked stronger inflows partly to reforms aimed at improving liquidity and reducing distortions in the foreign exchange market.
The improvement in reserves has occurred alongside a period of relative stability in the naira.
The currency closed at N1,329.50/$ on September 15, compared with N1,328/$ on September 10, with the naira remaining within a narrow range over four consecutive trading sessions.
The stronger reserve position gives the CBN a larger external buffer with which to respond to temporary foreign exchange pressures and manage excessive volatility.
The numbers show how quickly reserves have accumulated
The pace of accumulation has accelerated during 2026.
Reserves stood at $50.03 billion in March and reached $49.80 billion on June 1. They crossed $50 billion on June 4 and reached $51.53 billion by July 3.
By August 14, reserves had risen to $52.32 billion.
They then climbed to $53.90 billion on September 1, $54.08 billion on September 3 and finally $54.61 billion on September 14.
That means Nigeria added about $707.75 million to its reserves during the first 14 days of September alone, while the balance increased by about $2.28 billion between August 14 and September 14.
The current position is also above the approximately $51.04 billion reserve level projected by the CBN for the whole of 2026.
Sustainability remains a concern
Despite the sharp increase, analysts have cautioned that the composition of the reserves matters as much as the headline figure.
A former Access Bank Treasury official noted that it is difficult to attribute the buildup to one particular source because several channels contribute to reserve accumulation.
Portfolio inflows can strengthen Nigeria’s foreign exchange liquidity, but they can also leave quickly when global interest rates, exchange-rate expectations or investor sentiment change.
Similarly, oil remains vulnerable to fluctuations in international crude prices and disruptions to domestic production.
Olu Olajemgbese of the University of Abuja therefore argued that a more sustainable improvement would require a broader mix of foreign exchange sources, including non-oil exports, remittances and productive foreign direct investment.
Gwambe has also raised concerns about the continuing gap between the official and parallel foreign exchange markets.
“My worry is on the inherent gaps between the official market and the parallel market rates,” he said.
He called for greater integration of Bureau de Change operators into the formal foreign exchange system and increased participation in the market.
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