Nigeria is fast becoming West Africa’s new powerhouse for refined petroleum trading, gradually taking the spotlight from Lomé, Togo that is long regarded as the region’s leading hub.
Experts revealed this at the Oil Trading and Logistics (OTL) Africa Downstream Week 2025 held in Lagos, where industry players discussed the country’s growing influence in the regional fuel market.
According to James Gooder, Vice President of Argus Media, Nigeria has evolved from being a price-taker to a key player shaping fuel trade and pricing across Africa.
He described the liberalisation of the country’s gasoline market as a “turning point” that has opened the door for more competition and greater transparency in pricing.
“Nigeria’s gasoline market is now aligning with global benchmarks,” Gooder said.
“We’re seeing buyers and sellers adopt the same standards used internationally, particularly the Argus EBOB benchmark, which helps create fairer, more efficient pricing for everyone.”
He recalled that, in the past, Nigeria’s lack of a uniform pricing model gave international traders room to exploit price gaps.
But with deregulation and the Dangote Refinery boosting local supply, the market has become more competitive and efficient.
“Today, more companies are importing fuel, and the Dangote Refinery’s output is increasing,” Gooder added.
“This competition is helping to lower costs and improve access for consumers.”
Also speaking, Dr. Riverson Oppong, Chief Executive of Ghana’s Chamber of Oil Marketing Companies and Africa Regional Director, said Africa’s downstream oil sector is on track for rapid growth which is expected to expand from $80.5 billion in 2024 to $120.8 billion by 2032.
Quoting a McKinsey report, he noted that the continent’s fuel demand could grow by 2.2 million barrels per day between 2019 and 2035, representing a 2.3% annual growth rate.
This, he said, would make Africa one of the world’s fastest-growing markets, alongside South and Southeast Asia.
Oppong stressed that the next phase of growth must be driven by digital innovation.
He said adopting tools like Advanced Process Control (APC), digital twins, and predictive maintenance can cut operating costs by up to 20% and increase efficiency by up to 12%.
“Digitisation is no longer optional, it’s essential for survival,” he said.
“Companies that invest in technology will see fewer breakdowns, higher productivity, and better profits.”
He also encouraged operators to form strategic partnerships and joint ventures to manage costs, share risks, and access new markets.
“In places like Ghana, where a few large firms dominate the sector, smaller players can become more competitive by collaborating and pooling resources,” Oppong added.
With deregulation, local refining, and digital transformation taking root, Nigeria’s downstream sector appears set to redefine petroleum trading across West Africa.
