Domestic refineries received more than 127 million barrels of Nigerian crude oil and condensate between January and September 2026, following improved implementation of the Domestic Crude Supply Obligation, DCSO.
Commission Chief Executive of Nigerian Upstream Petroleum Regulatory Commission, NUPRC, Mrs Oritsemeyiwa Eyesan, disclosed this on Monday at the OTL Africa Downstream Energy Week 2026 in Lagos.
Eyesan noted several regulatory interventions made to improve crude supply to local refineries and strengthen Nigeria’s domestic refining capacity.
According to a statement issued by the NUPRC Head of Media and Corporate Communications, Eniola Akinkuotu, Eyesan the Commission’s intervention had improved deliveries after commercial disagreements between crude producers and refiners disrupted supplies in the first quarter of the year.
Speaking on the theme, ‘Secure Energy, Shared Prosperity’, Eyesan, who was represented by the Assistant Director, Operations, Mr Prosper Omonedo, said the Commission engaged producers and refiners to resolve the disagreements and improve supply performance in subsequent 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.
Under Section 109 of the Petroleum Industry Act (PIA) 2021, the NUPRC is mandated to allocate crude oil to domestic refineries before exports, a provision designed to support local refining and strengthen domestic energy security.
Eyesan also disclosed that the Commission was consulting producers, refiners and other industry stakeholders on a proposed domestic crude swap framework aimed at reducing transportation costs and improving supply efficiency.
Under the proposed arrangement, a refinery could receive crude oil from the nearest suitable production or export point rather than transport an allocated grade 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.
On crude oil 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 over the August figure.
Crude oil production alone averaged 1.53 million barrels per day, marking the fifth consecutive month the industry met or exceeded its production quota.
She attributed the improvement to enhanced asset integrity, improved security around 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 based on published criteria, with mandatory disclosure of beneficial ownership to promote accountability and investor confidence.
She added that the Commission was enforcing the drill-or-drop principle to discourage speculative retention of oil licences.
According to her, 22 recent awardees were expected to contribute at least 250,000 barrels per day to national production within five years.
Eyesan reaffirmed the Commission’s commitment to enforcing the Domestic Gas Delivery Obligation and collaborating with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to align refinery demand with crude supply planning.
She said the measures were intended to ensure that improvements in upstream petroleum operations translated into tangible benefits for households, industries and power generation.
