NMDPRA Aims to Create Africa's First Crude Oil Benchmark

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is exploring the creation of an African crude oil benchmark to challenge foreign pricing.

NMDPRA Chief Executive Rabiu Umar emphasized that Africa produces significant volumes of oil and gas, but much of its pricing is determined outside the continent.

Umar noted that major regions such as Europe, Northwest Europe, and America have their own benchmarks and indices due to the importance of price discovery in the market.

The regulator aims to leverage regional trade and improve price discovery through a similar model to the Amsterdam-Rotterdam-Antwerp trading hub in Europe, which serves as the principal pricing and supply centre for much of the continent.