NPRA Boss Advocates for Cross-Border Market Practices

NPRA Boss Advocates for Cross-Border Market Practices

Speaking as a Guest Speaker at the 19th Africa Downstream Energy Week 2025 in Lagos, themed: "Africa Oil & Gas Market and Regional Regulatory Integration," the Director-General of the National Petroleum Regulatory Authority (NPRA) urged oil and gas traders, experts, producers, stakeholders, and regulators across Africa to accelerate the drive towards robust regional integration and the harmonization of petroleum policies to enhance efficiency and accessibility within the industry.

Offering an assessment of the downstream market, the Director-General highlighted the anomaly of the region continuing to import over 70% of refined petroleum products despite its substantial hydrocarbon resources. He noted that fuel costs account for over 40% of national import bills in some ECOWAS countries, imposing a considerable burden on both governments and citizens.

He asserted that in an environment marked by persistent price volatility, supply chain inefficiencies, and quality disparities, Regional Regulatory Integration is no longer an aspiration but a critical necessity requiring a fundamentally new development paradigm.

Baluwa Koroma further articulated that "the fragmentation of laws, standards, licensing systems, and tax regimes across Africa diminishes our collective leverage and deters investment. This results in cross-border inconsistencies in fuel quality and pricing, tariff structures, unfair competition, and regulatory arbitrage."

He reassured fellow regulators that Regional Regulatory Integration is not intended as a relinquishment of national control. Instead, he framed it as "increasing our collective control over our markets, our common destiny, and how we serve our citizens, while preserving our African values."

DG Koroma emphasized that Africa, particularly sub-Saharan Africa, is currently experiencing the world's largest and fastest demographic shift. He stressed the need for a robust strategy to enable regulators to make decisive and swift decisions, asserting that Africa must adopt a strategy that benefits Africa.

DG Koroma pointed out that Africa represents the world’s largest trade area, encompassing the 55 countries of the African Union and eight Regional Economic Communities.

He emphasized the desirability of establishing a single continental market with a population of 1.3 billion people and a combined GDP of approximately USD3.4 trillion. He advised that, as regulators, "we must maintain unity in thought and strategy."

The Director-General underscored that Regional Regulatory Integration would not only strengthen Africa's collective bargaining power but also foster price transparency, promote market stability, boost economies of scale, and ultimately reduce costs for both consumers and industries.

He noted that such an initiative requires policy harmonization, joint infrastructure development, regulatory alignment, and, critically, political will.

Baluwa concluded by stating that as the downstream environment is constantly evolving, the regional approach must remain flexible enough to adapt to emerging changes, respecting the specific circumstances of each jurisdiction.