The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed that domestic refineries received more than 127 million barrels of Nigerian crude oil and condensate between January and September 2026, following regulatory interventions to resolve commercial disputes between producers and refiners.
The development comes as Nigeria intensifies efforts to strengthen local refining, reduce dependence on imported petroleum products and improve energy security through more reliable crude supply arrangements.
The Commission Chief Executive, Oritsemeyiwa Eyesan, said deliveries to domestic refineries improved in the second and third quarters after disagreements over commercial terms disrupted supplies during the first quarter of the year.
She also revealed that the commission was consulting industry stakeholders on a proposed domestic crude swap framework expected to reduce transportation costs for local refiners by allowing them to access suitable crude from nearby production or export points.
Eyesan disclosed this in a speech delivered by the Assistant Director, Operations, Prosper Omonedo, at the OTL Africa Downstream Energy Week 2026 in Lagos on Monday. The commission’s Head of Media and Corporate Communications, Eniola Akinkuotu, announced the development in a statement.
Speaking on the theme, “Secure Energy, Shared Prosperity,” the NUPRC chief said engagements with crude producers and refiners had helped improve supply performance in the second and third quarters.
“We engaged producers and refiners, and in the second and third quarters, 53.7 and 45.1 million barrels of crude oil and condensate were supplied to domestic refineries, an overall performance of 97.4 and 76.2 per cent, respectively. From Q1–Q3 of 2026, more than 127 million barrels of Nigerian crude went to Nigerian refineries,” she said.
The reported deliveries underscore efforts by the regulator to implement the Domestic Crude Supply Obligation, a provision of the Petroleum Industry Act (PIA) 2021 designed to support domestic refining by requiring crude producers to supply local refineries within the established regulatory framework.
Section 109 of the Act provides for the supply of crude oil to domestic refineries, reinforcing the government’s objective of increasing local processing capacity and reducing the country’s reliance on imported refined petroleum products.
Despite the policy framework, commercial disagreements over crude pricing, payment terms and supply arrangements have continued to complicate access to locally produced crude for domestic refiners.
To address these challenges, Eyesan said the commission was working with producers, refiners and other stakeholders to develop a crude swap arrangement that could make supplies more cost-effective by reducing the distance crude must travel before reaching processing facilities.
“Under it, a refiner could receive crude from the nearest suitable production or export point instead of moving an allocated grade over long distances, which could take an estimated three to four dollars off the cost of every barrel,” she added.
The proposed framework could lower logistics expenses, improve refinery operating economics and make domestic crude processing more competitive. However, the extent of the savings will depend on the final structure of the arrangement, the availability of suitable crude grades and the willingness of producers and refiners to participate.
Beyond crude supply, the commission also reported an improvement in Nigeria’s upstream production performance.
According to Eyesan, the country recorded average production of 1.717 million barrels per day of crude oil and condensate in September, representing a 2.34 per cent increase from August.
Crude oil production alone averaged 1.53 million barrels per day, marking the fifth consecutive month in which the industry met or exceeded its production quota.
She attributed the improvement to better asset integrity, enhanced security around evacuation infrastructure, stronger collaboration with operators and sustained regulatory efforts to restore shut-in production.
The gains, she indicated, reflected ongoing measures to address operational constraints and improve the reliability of facilities used to produce and transport crude oil.
Eyesan also outlined the commission’s priorities for the 2026 oil licensing round, stating that the 40 blocks being offered would be subjected to a transparent evaluation process based on published criteria.
She said the process would include mandatory disclosure of beneficial ownership, a measure intended to strengthen accountability and provide greater clarity about the individuals and entities controlling oil and gas assets.
The commission is also enforcing the “drill-or-drop” principle to discourage speculative acquisition of petroleum licences. Under the approach, licence holders are expected to develop their assets within the applicable requirements or risk losing their licences.
According to Eyesan, 22 recent awardees are expected to contribute at least 250,000 barrels per day to national production within five years.
The projection highlights the regulator’s expectations for new investments to translate into additional output, although achieving the target will depend on the timely development of the awarded assets and the successful execution of exploration and production programmes.
On gas development, the NUPRC chief reaffirmed the commission’s commitment to meeting the Domestic Gas Delivery Obligation and working with the Nigerian Midstream and Downstream Petroleum Regulatory Authority to align refinery demand with crude supply planning.
She stressed that increased upstream production must deliver practical benefits beyond the oil industry, particularly through improved energy availability for households, businesses, industrial operations and power generation.
Nigeria has continued to pursue policies aimed at expanding domestic refining under the Petroleum Industry Act, with the objective of processing more locally produced crude within the country, strengthening supply security and reducing exposure to imports of refined petroleum products.
However, persistent disagreements over pricing and supply terms have highlighted the gap between regulatory requirements and the commercial realities confronting refiners.
The proposed crude swap framework is expected to address part of this challenge by giving refiners greater flexibility to source suitable crude from nearby locations rather than transport allocated grades across long distances at additional cost.
The issue has become increasingly important as Nigeria expands its refining capacity. The 700,000-barrel-per-day Dangote Petroleum Refinery, alongside other private refining projects, has increased the strategic importance of establishing dependable and commercially viable arrangements for supplying crude to domestic processors.
Ultimately, the success of the commission’s initiatives will depend on sustained cooperation between producers, refiners and regulators, as well as the effective implementation of policies governing crude allocation, production and licensing.
For Nigeria, improving domestic crude deliveries while sustaining higher production could help strengthen the relationship between upstream oil operations and downstream industrial development, with potential benefits for energy security, investment and the wider economy.