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’s Chief Executive, Oritsemeyiwa Eyesan, said crude deliveries improved after commercial disagreements disrupted supplies in the first quarter.
She added that the regulator was considering a crude swap framework to lower transportation costs for local refineries.
Eyesan spoke 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, disclosed this in a statement.
Speaking on the theme, ‘Secure Energy, Shared Prosperity’, Eyesan said the commission’s intervention had helped improve crude deliveries to domestic refineries in the second and third quarters of 2026.
Speaking on the theme, ‘Secure Energy, Shared Prosperity’, Eyesan said the commission’s intervention had boosted crude deliveries to domestic refineries in the second and third quarters of 2026.
“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 reflect the regulator’s efforts to enforce the Domestic Crude Supply Obligation, which requires producers to supply crude oil to local refineries under the Petroleum Industry Act 2021.
Section 109 of the Act provides for crude oil to be allocated to domestic refineries before export, a measure aimed at boosting local refining capacity and reducing dependence on imported petroleum products.
However, pricing disputes and disagreements over supply arrangements have continued to hinder domestic refiners’ access to Nigerian crude.
To address these challenges, Eyesan said the commission was consulting crude producers, refiners and other stakeholders on a domestic crude swap framework designed to reduce transportation costs associated with 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 framework could reduce logistics costs for refiners and make local crude processing more commercially viable. However, its effectiveness would depend on the implementation process and the level of participation from crude producers and refiners.
She attributed the improvement to better asset integrity, improved security around evacuation infrastructure, closer collaboration with operators and sustained regulatory efforts to bring shut-in production back online.
On the 2026 oil licensing round, Eyesan said the 40 blocks on offer would be subjected to a transparent evaluation process, with clear criteria and mandatory disclosure of beneficial ownership.
She added that the commission was enforcing the “drill-or-drop” principle to discourage speculative ownership of oil licences. Under the policy, licence holders must develop their assets or risk losing them.
