Nigeria’s refining boom is creating a potentially transformative opportunity for West Africa, with an estimated 2.77 billion litres of petrol equivalent to 2.05 million tonnes of monthly output capable of feeding a regional market.

Weak infrastructure, fragmented regulations and shallow market liquidity, however, threaten to leave much of the opportunity unrealised.

The emerging paradox is that West Africa may finally be approaching the point where it can produce enough refined fuel for regional trade, yet still lacks the physical and financial architecture needed to move, price and trade those products efficiently.

The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Rabiu Umar, captured the challenge at the second West Africa Refined Fuels Market Conference in Abuja, warning that the region must move from building the foundations of a regional market to financing and executing it.

For investors, however, the Governor, represented by the Deputy Governor, Operations Directorate, Emem Usoro. questioned whether West Africa could create sufficient certainty and liquidity to justify committing capital to regional energy infrastructure.

Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, said Nigeria’s oil and gas sector was undergoing fundamental changes, citing rising refining capacity, increased crude production and improvements in the gas sector.

Nigeria, she said, was moving towards meeting domestic refining requirements and attempting to export refined products, while crude production had also increased.