The Nigerian Upstream Petroleum Regulatory Commission has disclosed that domestic refineries received more than 127 million barrels of Nigerian crude oil and condensate between January and September 2026, following efforts to resolve supply disputes between producers and refiners.
The Commission Chief Executive, Oritsemeyiwa Eyesan, said the deliveries improved after commercial disagreements disrupted crude supplies in the first quarter, adding that the regulator was considering a crude swap framework to reduce transportation costs for local refineries.
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 Head of Media and Corporate Communications, Eniola Akinkuotu, announced this in a statement.
Speaking on the theme, ‘Secure Energy, Shared Prosperity’, the NUPRC chief said the commission’s intervention had helped improve deliveries 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 figures highlight the regulator’s efforts to implement the Domestic Crude Supply Obligation, which requires crude producers to supply domestic refineries under the framework established by the Petroleum Industry Act 2021.
Section 109 of the Act provides for the allocation of crude oil to domestic refineries before export, supporting local refining and reducing reliance on imported petroleum products.
However, commercial disagreements over pricing and supply arrangements have remained a challenge for domestic refiners seeking access to Nigerian crude.
To address some of these difficulties, Eyesan said the commission was consulting producers, refiners and other stakeholders on a domestic crude swap framework that could reduce the cost of moving crude over long distances.
“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 arrangement could help refiners lower logistics expenses and improve the economics of processing crude locally, although its impact would depend on how the framework is implemented and the participation of producers and refiners.
On production, Eyesan said Nigeria recorded an average 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 the industry met or exceeded its quota.
She attributed the improvement to better asset integrity, enhanced security of evacuation infrastructure, stronger collaboration with operators and sustained regulatory efforts to restore shut-in production.
On the 2026 oil licensing round, Eyesan said the 40 blocks on offer would undergo a transparent evaluation process, with published criteria and mandatory disclosure of beneficial ownership.
She also said the commission was enforcing the “drill-or-drop” principle to discourage speculative ownership of oil licences. Under the approach, licence holders are expected to develop their assets or risk losing them.
According to her, 22 recent awardees are expected to contribute at least 250,000 barrels per day within five years.
Eyesan 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 said the regulator’s priority was to ensure that gains in upstream production translated into tangible benefits for households, industries and power generation.
Nigeria has been pushing to increase domestic refining under the Petroleum Industry Act, which provides a framework for ensuring that local refineries have access to crude produced in the country. The policy is intended to support local processing, reduce dependence on imported refined petroleum products and strengthen energy security.
However, access to crude has remained a major challenge for domestic refiners, with disagreements over pricing, payment terms and supply arrangements affecting deliveries.
The proposed crude swap framework is aimed at easing some of these constraints by allowing refiners to obtain suitable crude from nearby production or export points, potentially reducing transportation costs.
The development comes as Nigeria seeks to sustain higher crude oil production while expanding local refining capacity. The 700,000-barrel-per-day Dangote Petroleum Refinery, alongside other private refineries, has increased the importance of reliable domestic crude supply.