By | Goodluck E. Adubazi, Abuja
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 progress in the implementation of the Domestic Crude Supply Obligation (DCSO).
The Commission Chief Executive, Mrs. Oritsemeyiwa Eyesan, disclosed this on Monday, October 26, 2026, while delivering her address at the OTL Africa Downstream Energy Week 2026 in Lagos.
Eyesan, who was represented by the Assistant Director, Operations, Mr. Prosper Omonedo, said the Commission’s interventions had improved crude oil deliveries to domestic refineries following commercial disagreements between producers and refiners that disrupted supplies in the first quarter of the year.
Speaking on the theme, “Secure Energy, Shared Prosperity,” she explained that the Commission engaged producers and refiners to resolve supply challenges and improve compliance with the domestic crude supply policy.
According to her, domestic refineries received 53.7 million barrels of crude oil and condensate in the second quarter and 45.1 million barrels in the third quarter of 2026, representing supply performance levels of 97.4 per cent 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 NUPRC is responsible for implementing the Domestic Crude Supply Obligation under Section 109 of the Petroleum Industry Act 2021, which provides for the allocation of crude oil to domestic refineries before export.
To further reduce supply costs and improve operational efficiency, Eyesan said the Commission was consulting oil producers, refiners and other stakeholders on a proposed domestic crude swap framework.
Under the proposed arrangement, refiners could receive crude oil from the nearest suitable production or export point rather than transporting their allocated grades over long distances.
The Commission estimates that the arrangement could reduce transportation costs by between $3 and $4 per barrel, potentially lowering refinery operating expenses and improving the economics of domestic refining.
The proposed framework is expected to address some of the logistical challenges associated with crude delivery while strengthening the connection between upstream production and domestic refining capacity.
On Nigeria’s oil production performance, Eyesan disclosed that the country recorded an average of 1.717 million barrels per day of crude oil and condensate in September 2026, representing a 2.34 per cent increase over the August figure.
She added that 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 her, the improvement was driven by better asset integrity, enhanced security around oil evacuation infrastructure, stronger collaboration with operators and sustained regulatory efforts to restore previously shut-in production.
She said the Commission would continue working with industry operators to consolidate the gains and sustain improvements in Nigeria’s oil production.
On the 2026 Licensing Round, the NUPRC chief executive said the 40 oil and gas blocks on offer would undergo a transparent evaluation process based on published criteria.
She stressed that mandatory disclosure of beneficial ownership would form part of the process, aimed at promoting transparency, accountability and investor confidence in the upstream petroleum sector.
Eyesan also reaffirmed the Commission’s commitment to enforcing the drill-or-drop principle to discourage speculative acquisition and retention of petroleum licences without corresponding exploration and development activities.
She noted that 22 recent awardees were expected to contribute at least 250,000 barrels per day to Nigeria’s production within five years.
The principle is intended to ensure that licence holders demonstrate tangible progress in developing assigned assets rather than retaining them without meaningful investment.
Eyesan further reaffirmed the Commission’s commitment to meeting the Domestic Gas Delivery Obligation and strengthening collaboration with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
She said both regulators would continue aligning refinery demand with crude oil supply planning to ensure that improvements in upstream operations translate into tangible economic benefits.
According to her, the objective is to strengthen domestic refining, improve energy security and ensure that increased oil and gas production supports households, industries and electricity generation.
The Commission maintained that effective coordination across the petroleum value chain remains essential to reducing supply bottlenecks, improving operational efficiency and supporting Nigeria’s broader energy security and economic development objectives.
