By Seun Ibiyemi
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, reflecting improved implementation of the Domestic Crude Supply Obligation (DCSO).
The Commission Chief Executive, Oritsemeyiwa Eyesan, disclosed this on Monday at the OTL Africa Downstream Energy Week 2026 in Lagos.
Eyesan, who was represented by the Assistant Director, Operations, Prosper Omonedo, said the Commission’s intervention had improved crude deliveries after commercial disagreements between producers and refiners disrupted supplies in the first quarter.
Speaking on the theme, “Secure Energy, Shared Prosperity,” she said the NUPRC engaged producers and refiners to resolve supply challenges and improve deliveries to domestic processing facilities.
“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,” Eyesan said.
The development comes amid efforts to strengthen domestic refining capacity and ensure that more of Nigeria’s crude production supports local fuel processing rather than being exported for refining abroad.
The NUPRC chief executive said the Commission was consulting oil producers, refiners and other stakeholders on a domestic crude swap framework designed to reduce transportation costs and improve supply efficiency.
Under the proposed arrangement, refiners could receive crude oil from the nearest suitable production or export point instead of transporting an allocated grade over long distances.
According to Eyesan, the arrangement could reduce costs by an estimated $3 to $4 per barrel.
“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 said.
The framework is intended to address logistical challenges associated with moving crude grades across long distances and potentially lower the cost of supplying domestic refineries.
Under Section 109 of the Petroleum Industry Act (PIA) 2021, the NUPRC administers the Domestic Crude Supply Obligation, requiring crude oil to be made available to domestic refineries in line with the law’s provisions.
On production, Eyesan said Nigeria recorded average crude oil and condensate output of 1.717 million barrels per day in September 2026, representing a 2.34 per cent increase over 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, according to the Commission.
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 Commission said these measures were helping to improve output and strengthen the performance of the upstream petroleum sector.
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Sustained production growth is important to crude supply planning for domestic refineries, as well as the government’s efforts to boost oil revenues and strengthen energy security.
Eyesan also outlined the Commission’s plans for the 2026 Licensing Round, stating that the 40 oil and gas blocks on offer would undergo a transparent evaluation process.
She said the process would feature published assessment criteria and mandatory disclosure of beneficial ownership to strengthen accountability and transparency in the allocation of petroleum assets.
The Commission is also enforcing the drill-or-drop principle to discourage speculative ownership of licences without meaningful exploration and development activities.
Eyesan said 22 recent awardees were expected to contribute at least 250,000 barrels per day to Nigeria’s production within five years.
The policy is intended to encourage licence holders to develop their assets and translate awarded petroleum rights into measurable production gains.
The NUPRC chief executive reaffirmed the Commission’s commitment to meeting the Domestic Gas Delivery Obligation and collaborating with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
She said the agencies were working to align refinery demand with crude supply planning to ensure that gains in upstream production deliver tangible benefits to households, industries and electricity generation.
The Commission’s priorities include improving crude availability, reducing supply-chain costs, increasing production and ensuring that domestic refineries can access feedstock more efficiently.
